Q: If I file for bankruptcy, will I lose everything I own?

A: You will probably be able to keep most, or all, of your property. In Kansas, you can keep equity in your homestead, one vehicle per filing person, your retirement accounts, jewelry up to $1,000 in fair market value, your tools of the trade, and your furniture and personal effects. Jet skis, fishing boats, motorcycles, extra vehicles, and cash on hand are common items we need to deal with before filing.

Q: Will everyone know that I filed for bankruptcy?

A: Your filing will show up in the Federal courthouse records, and on your credit report. Your name may be published in the newspaper. Anyone you owe money to will receive notice of your filing directly from the Court. You should accept that folks will find out that you filed. You will be amazed at how little they care - everybody has their own problems. We file for hundreds of people, just like you, each year. Do not let unnecessary embarrassment keep you from doing what is best for your family.

Q: If I have filed for bankruptcy in the past, can I file for bankruptcy again?

A: Yes. Generally, if you have filed a Chapter 7 in the past, you will need to wait four years before you file a Chapter 13, and eight years before you file another Chapter 7. If you filed a Chapter 13, finished your case, and earned your discharge, you will need to wait two years from the Chapter 13 filing date before you file another Chapter 13, and six years before you file another Chapter 7. There are exceptions to this general rule, that may apply to your particular situation.

Q: I am married. Will my spouse need to file with me?

A: No. You can file on your own. Of course, if your spouse does not file, he or she does not get protection from his or her own creditors, including creditor you owe on a joint debt. Often it is just easier to file together.

Q: Will I ever get a good credit score again?

A: You will be amazed at how fast your score will recover. You do take a significant hit when you file - how large a hit depends on your score before filing. If you are sporting a 730 credit score, kiss it goodbye! However, if your score compares to where most of our clients are (500-650), you can expect to recover within about 2 years of receiving your discharge. We try to encourage people not to obsess over their score - it is far more important to get financially healthy. If you are paying your bills, putting savings in the bank, and staying current on any debt you carry through the bankruptcy, your credit score will rise to match your good financial health.

We hope we have cleared up some of the questions you have on bankruptcy. Please feel free to contact us for more information.