Bankruptcy FAQs

Better Your Situation Through Education

At Eron Law, we care about each one of our clients. Our goal is to better your situation through education and legal assistance. Take a moment to browse our Help Center for free information that may relate to your situation.

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Why should I hire an attorney?
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Why should I hire an attorney?

Far more reasons that we can list, but two HUGE reasons:

  1. Save MONEY! A major part of our job is helping clients keep as much money and 
property as possible. If you don’t know how to accomplish that, the results can easily cost you thousands. We have seen cases where it cost into the hundreds of thousands.
  2. Save TIME! Filling out our questionnaire and gathering all of the necessary documents can be exhausting. But it is nothing compared to having to actually read those documents and assemble the information into more than 80 pages of schedules. We take a lot of work off of your shoulders.
  3. Save your DISCHARGE! You don’t know what you don’t know. But the court and the trustee cannot afford to make exceptions to the rules for pro se debtors. If you mess up, you could be kicked out of bankruptcy, lose your discharge, or go to prison. It’s not worth the risk.
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How quickly can I file?
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How quickly can I file?

Pretty darn quick. It usually takes us one to two weeks to prepare a case after we have received all required documents. The most common reason for delay is missing documents and information, which is entirely in your control. In rare emergency cases (i.e. imminent foreclosure, etc.), we can get a case filed within a day or two.

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Can I give stuff away?
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Can I give stuff away?

No. Do not engage in any unusual activities with your assets or finances without retaining counsel first. This can cause major problems with your case if not handled properly.

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What happens to my house?
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What happens to my house?

In most cases, all of the equity in your home will be exempt (i.e. cannot be taken from you by the bankruptcy estate). You can elect to reaffirm the mortgage(s) and keep making your payments to avoid foreclosure. If you are already behind in your payments, you can use Chapter 13 to set up a payment plan and get caught up. Alternatively, you can elect to discharge the debt on your home and “surrender” the home to the mortgage company if you do not want to keep up the payments. There are other options as well, and a consultation is the best way to figure out what will work for you.

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What happens to my car?
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What happens to my car?

In most cases, all of the equity in your vehicle (one only) will be exempt (i.e. cannot be taken from you by the bankruptcy estate). You can elect to reaffirm the loan and keep making your payments to avoid repossession. In some cases, you can use Chapter 13 to reduce the balance of your loan to the value of your vehicle, and/or restructure the remaining balance over 36-60 months. Alternatively, you can elect to discharge the loan and “surrender” the car if you do not want to keep up the payments. There are other options as well, and a consultation is the best way to figure out what will work for you.

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Will I still have to pay my taxes?
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Will I still have to pay my taxes?

Most taxes are not dischargeable in bankruptcy, including income taxes in the past three years, sales tax, and withholdings tax. However, older income tax and tax penalties can sometimes be discharged. Moreover, in a restructuring case, taxes can be paid off over a 60 month plan without additional interest or penalties, all while preventing further garnishments and tax liens.

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Will I still have garnishments?
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Will I still have garnishments?

Garnishments by almost all creditors are strictly prohibited while a bankruptcy case is pending. It may take a few weeks for the garnishments to fall off, depending on the pay schedule and responsiveness of the payroll department. Once the underlying debt is discharged in the bankruptcy, if dischargeable, the debt will be permanently uncollectible

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Will I still owe on my student loans?
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Will I still owe on my student loans?

Bad news on student loans. Generally, you cannot get rid of your student loans in a bankruptcy case. However, they are put in forbearance if you do a Chapter 13 payment plan bankruptcy, so that you do not need to worry about making those payments separately.

There are situations when you CAN get rid of your student loans. Doing so requires us to file a separate lawsuit within the bankruptcy case and proving that keeping the student loans would put you in an unduly hard situation. There are several requirements in order to get rid of student loans – you should discuss this with us at your consultation if this is something you would like to consider!

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Should I file Chapter 7 or 13?
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Should I file Chapter 7 or 13?

A Chapter 7 bankruptcy is what most people think of when they hear “bankruptcy”. You are able to get rid of most of your debt, and you get rid of it within three to four months of filing your case. Some debts may be reaffirmed in a Chapter 7, such as a home mortgage or car loan that you plan to retain.

A Chapter 13 Payment Plan bankruptcy can also be beneficial for getting rid of most or all of the same debts dischargeable in Chapter 7, and some that are not. In addition, you will set up a payment plan that may include your car loan, taxes, or back payments on your mortgage. You may also be required to pay back some of your credit cards and unsecured debt if you are a high income earner or have a lot of assets.

Check out our page discussing the differences between Chapter 7 and Chapter 13 for information, or call us to discuss your situation!

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What can I keep? What can’t I keep?
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What can I keep? What can’t I keep?

Generally, you are allowed to keep your house and car, as well as furniture, electronics, clothing, social security funds, and retirement accounts. You are also allowed to keep, up to a certain amount, jewelry and tools used for work. If you have a loan on one of these items, such as a mortgage, you would need to keep paying that loan in order to keep the asset.

Property that you generally cannot keep includes money you have when your case is filed, tax refunds for the year of filing, firearms, some collectibles, stocks or interests in businesses, and more than one house or vehicle (per person). We will help you find a way to retain value from these items through proper exemption planning.


Keep in mind that the lists above are not exhaustive, and so if you have property that is not listed, just ask! This information may also change if you have lived in Kansas for less than two years or if you file for a Chapter 13 Payment Plan bankruptcy.

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What debts are NOT eligible for bankruptcy?
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What debts are NOT eligible for bankruptcy?

Although you are able to discharge (get rid of) most debts in a bankruptcy case, there are a handful of debts you cannot – this includes most taxes, student loans, child support and alimony, fines and tickets, or debts you obtained fraudulently. If you have a debt you are not sure about, just ask us!

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What is the impact on my credit?
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What is the impact on my credit?

A bankruptcy case is reported on your credit for 10 years. Most people discover that their credit score actually increases after filing bankruptcy, by getting rid of all of the negative accounts. One of the keys to success is having a payment post-bankruptcy that will help build new credit history. Even with an improved credit score, some lenders or loan types may have waiting periods before you can take out a new loan. For a mortgage, there is typically a two to four year wait, while many credit cards and car lenders are prepared to extend credit immediately after your case concludes.

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Can I avoid filing bankruptcy?
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Can I avoid filing bankruptcy?

Sure, you may be able to avoid bankruptcy, but if you are reading this, you’re probably already feeling overwhelmed with your debt. Outside of bankruptcy, there are options for negotiating debt settlements. We help with this type of debt relief also. A lot of the financial information we would need is the same, so when you are talking to us, just mention that you might be interested in avoiding bankruptcy – we’ll go over some options!

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How much does it cost?
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How much does it cost?

Short answer – it depends! We charge different fees depending on the type of bankruptcy that you file and your situation. A consumer (non-business) Chapter 7 costs $1,500 for the attorney fee, plus costs of $388. The entire fee must be paid before filing. For a Chapter 13, the fee is $3,350, plus costs of $310 for a standard case. However, only $500 is due before filing the case and the rest is paid through the payment plan. If you file a Chapter 11 or 12 case (farms/business), the fees are billed at our hourly rate, and will always require an upfront deposit typically ranging from $7,500-40,000.

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Can I exclude certain debts?
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Can I exclude certain debts?

No. Federal law requires that you list everyone you owe money to. Keep in mind that arrangements can be made for creditors tied to your assets, such as the house or car you want to keep. Even debts that you cannot discharge in bankruptcy must be listed, such as child support obligations, taxes, and student loans. The word to keep in mind with bankruptcy is “DISCLOSURE” – you need to disclose all of your financial information.

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What about medical bills?
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What about medical bills?

Overwhelming bills from doctors, dentists, hospitals, ambulances, etc. are one of the biggest reasons that individuals file bankruptcy. Medical debts can be discharged in every Chapter of bankruptcy! Due to the “doctrine of necessities” in Kansas, individuals are usually liable for the medical debts of their spouses and minor children. As a result, medical liabilities typically mean that a joint bankruptcy should be filed if you are married.

Bankruptcy FAQs
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