Debts FAQ

Can I keep my house or car if I file Bankruptcy?

• Chapter 13 Bankruptcy: Generally yes, but it depends. This acts as a reorganization plan. It is specifically designed to help you stop foreclosure or vehicle repossession by allowing you to catch up on missed payments over 3 to 5 years while keeping your property.

• Chapter 7 Bankruptcy: Generally yes, but it depends on factors such as how much equity you have in the home or vehicle. Chapter 7 utilizes either Federal or Kentucky bankruptcy exemptions to protect your assets. These exemptions shield a certain amount of equity in your primary residence, vehicle, and personal belongings from creditors. Scheduling a free consultation with us would be the best way to discuss how the exemptions would apply in your case.

How much does it cost to file for bankruptcy? 

The cost to file for bankruptcy includes mandatory federal court filing fees and your attorney's fees. Attorney fees vary based on the complexity of your case and the type of bankruptcy you are filing. Because Chapter 13 involves managing a repayment plan over several years, the legal fees are typically higher than a standard Chapter 7 case. 

• Chapter 13 Bankruptcy: The Court filing fee is $313 (as of May 2026) and attorney's fees can often be rolled into your monthly bankruptcy plan payment. 

• Chapter 7 Bankruptcy: With Stanley Bankruptcy Law, you can file a Chapter 7 Bankruptcy case for ZERO dollars down. You can then make payments on the $338 Court filing fee and attorney's fees. 

The most accurate way to understand your total costs is to have your financial situation reviewed by an attorney. We offer free, no-obligation case evaluations to residents in Eastern Kentucky to help you know your options and provide transparent pricing before you make any decisions.

How can I stop foreclosure on my house, repossession of my vehicle, and garnishment of my paycheck?

You can generally stop all these collection efforts by filing your bankruptcy case. Once a bankruptcy case is filed, collection efforts such as foreclosures, repossessions, and garnishments are stopped. If your car is already repossessed, we may be able to help get it returned. 

What debts are typically discharged in bankruptcy?

Most unsecured debts are usually completely wiped away at the end of a successful bankruptcy case, meaning you would no longer owe the debt. Examples include:

• Credit Card Debt: Balances on all major credit cards and department store accounts.

• Medical Bills: Outstanding balances for doctor visits, hospital stays, and procedures.

• Personal Loans: Unsecured loans from banks, credit unions, or online lenders.

• Lawsuit Judgments: Most civil judgments resulting from debt collection or accidents (with some exceptions).

What debts can be restructured through Chapter 13 Bankruptcy?

For debts that cannot be fully eliminated, bankruptcy provides a way to manage them more effectively. For example:

• Mortgage Arrears: Chapter 13 allows you to pay back missed house payments over several years to stop a foreclosure.

• Car Loans: You can often catch up on late payments or, in some cases, "cram down" or lower the loan balance to the actual value of the car. In cases where "cram down" applies, if you owe $20,000 on your car and it is only worth $12,000, for example, then you would only pay $12,000. The remaining $8,000 is discharged.  

• Tax Debt: While not all taxes are dischargeable, some older income tax debts can be eliminated, and newer ones can be paid back in a repayment plan.

What is the "Automatic Stay" protection?

The moment you file bankruptcy, it triggers an "Automatic Stay" of collection efforts which immediately stops, for example:

• Collection Calls: Creditors are legally barred from contacting or harassing you.

• Wage Garnishments: Most garnishments must stop immediately.

• Foreclosures and Repossessions: These legal actions are paused, giving you time to catch up on missed payments and reorganize your finances.

How can I rebuild my credit score after filing bankruptcy?

At Stanley Bankruptcy Law, our representation doesn’t just end with your debt settlement or bankruptcy discharge. We want to ensure your creditors stay gone and your credit score starts recovering immediately. Through our exclusive partnership with www.720creditscore.com, we offer a comprehensive 3-month credit rebuilding program designed to help you bounce back.

The 7-Step Credit Rebuilding Program

• The Goal: Raise your credit score to the "Great" category (a 680–720 FICO score) within 12 to 24 months.

• Exclusive Client Discount: While this program normally costs $1,000, Stanley Bankruptcy Law clients pay just $50.

• Non-Client Rate: We also offer this program to non-clients for $250.

A 720 credit score is entirely possible within two years of resolving your debt. Let us help you secure your financial fresh start.