02. Bankruptcy

The Bankruptcy Process

Filing a bankruptcy starts with a free consultation with Jovanna, Bearden Law’s bankruptcy attorney.  Together, you review your unique situation and the concerns that have led you to think about bankruptcy. You discuss the different types of bankruptcy and decide which type of bankruptcy, if any, is best for your situation. At this meeting we'll discuss the different factors that go into what kind of bankruptcy is best for you, including your income, assets, equity, and types of debt. Jovanna quotes a price based on the complexity of your case, and you work out a payment arrangement that fits your situation.  Jovanna gives you a list of documents she needs you to gather to prepare your bankruptcy. 


Once you have your documents, you meet with Katlynn, Bearden Law’s bankruptcy paralegal.  Together, you review your documents and fill in your bankruptcy forms. With these forms completed, you and Jovanna meet again and review everything to ensure it’s correct. You discuss the forms and Jovanna answers all your questions. When everything is correct and you understand it, you both sign the bankruptcy papers, and Jovanna files them with the court.


After you file the bankruptcy, you and Jovanna attend a court date with a Trustee, an attorney appointed to your case by the bankruptcy court, to answer questions about your bankruptcy. You will also complete a telephonic bankruptcy class. If you wish to keep any debts, such as home mortgages or car loans, Jovanna will work with you to complete the paperwork to reaffirm these debts.


After your court date, second class, and reaffirmation agreements are completed, the court processes your bankruptcy and gives you a discharge order saying that your debts are wiped out, and your bankruptcy is over.   After your bankruptcy is over, you should check your credit report to make sure that the debts are all listed as “$0” balance and “discharged in bankruptcy” so that you have the full benefit of your fresh start!


At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel any loan they have made to a fellow Israelite. They shall not require payment from anyone among their own people, because the Lord’s time for canceling debts has been proclaimed.

- Deuteronomy 15 : 1, 2

Types of Personal Bankruptcy

Bearden Law files both of the two types of personal bankruptcies: Chapter 7 and Chapter 13.  Chapter 7 bankruptcy is a liquidation, or wipe out bankruptcy. Chapter 13 is a reorganization, or repayment bankruptcy. Both can help you with difficult situations like garnishments and repossessions. Schedule an appointment with Jovanna to review your situation and determine which works best for you. 


Chapter 7 bankruptcy is good if you are under median income for your household size and if any equity you have in your property is protected by the state’s exemptions. It is also good if you want to give up a house or a car and wipe out the debts associated with those assets. 


Chapter 13 bankruptcy is good if you need to catch up on a home mortgage, a car loan, or your income is above median for your household size, or your property’s equity is above the state’s exemption threshold. In these circumstances, the bankruptcy court allows you to reorganize your debts and repay them over a three to five year period.

 Your Next Step

Request a Price Quote

Reach out to us about the your debt issues and let's see if a bankruptcy is best options to tackle the problem.  If it is, we'll discuss what kind of bankruptcy will work best and plot a course forward to do what needs done within your budget.