Frequently Asked Questions

🔍  Frequently Asked Questions – Bankruptcy at The Choate Law Firm

1. Will I lose my house or car if I file for bankruptcy?

Not necessarily.

Bankruptcy laws are designed to help people protect essential assets while resolving debt. In most cases:

    •    Chapter 7: You may keep your house or car if you’re current on payments and the asset’s equity is within Oklahoma’s exemption limits. Our staff will help you complete the affirmation process with your lender to ensure the asset is protected. 

    •    Chapter 13: You may keep both your house and car while repaying missed payments through a manageable 3-5 year repayment plan.

We evaluate your situation carefully to maximize your asset protection. If you’re behind on payments or facing foreclosure/repossession, bankruptcy may stop the process immediately through the automatic stay and give you time to catch up. To retain your house and car, you must eventually pay any outstanding debt associated with them.

      2. How does bankruptcy stop garnishments?

Once your case is filed, the court issues an automatic stay, which is a legal order that stops most collection efforts immediately — including:

    •    Wage garnishments

    •    Bank levies

    •    Collection calls and lawsuits

If your wages are being garnished, filing bankruptcy can halt future garnishments right away.

    3. Can bankruptcy really give me a fresh start?

Yes. Bankruptcy provides a legal and financial reset. It eliminates qualifying debts and protects you from creditors while giving you room to rebuild. 

Many clients report:

    •    Relief from stress and anxiety

    •    Immediate end to collection calls

    •    A clean slate to rebuild credit and finances

    •    The ability to plan and save for the future

We’ll help you develop a clear path forward so you can move ahead with confidence.

     4. How soon should I file if I’m being garnished?

The sooner, the better.

Every paycheck that gets garnished is money you lose permanently. Filing quickly:

    •    Stops garnishment right away

    •    May allow your attorney to recover wages taken after the filing date

    •    Gives you immediate financial relief

Delaying your case could mean losing hundreds or thousands of dollars unnecessarily.

     5. What debts can bankruptcy eliminate?

Bankruptcy may wipe out:

•  Credit card debt

•  Personal loans

•  Medical bills

•  Payday loans

•  Old utility balances

•  Deficiency balances on repossessed cars

•  Certain older income taxes (depending on the timing and type)

•  Some student loans

Exceptions include:

• Child support

• Some student loans

• Recent taxes

• Court fines and criminal restitution 

We’ll review your debts with you to clarify what can be discharged in your unique case.

     6. What’s the difference between Chapter 7 and Chapter 13?

Chapter 7:

    •    Usually lasts 3-4 months

    •    Wipes out most unsecured debt

    •    No repayment plan

    •    Income must be under a certain level (means test)

    •    Best for those with limited assets and income

Chapter 13:

    •    Involves a 3–5 year repayment plan

    •    Helps stop foreclosure and repossession

    •    Allows you to catch up on mortgage or car payments

    •    Available to higher-income individuals

We’ll help you determine which chapter is the best fit for your goals.

     7. Will everyone know I filed for bankruptcy?

While bankruptcy is public record this information is kept behind a wall pay, most people never have anyone find out unless they tell them.

    •    Your employer typically won’t be notified unless wage garnishment was involved.

    •    Bankruptcy does not appear in the newspaper.

    •    Most friends, neighbors, and co-workers won’t know unless you choose to share.

      8. How will bankruptcy affect my credit?

Bankruptcy temporarily lowers your credit score, but most clients begin rebuilding immediately. Benefits include:

    •    Eliminating toxic debts dragging your score down

    •    Stopping late payments from accumulating

    •    Potentially reaching a score of 620-680 

    •    Becoming eligible for secured credit cards or auto loans shortly after discharge

With consistent financial habits, many clients can qualify for home loans within 2–3 years.

      9. Can I keep my tax refund or stimulus check?

It depends on the chapter and timing:

Please schedule a time for a free consultation on your personal tax refund options.

Our attorneys help time your case strategically to protect your refund whenever possible.

      10. Can bankruptcy stop foreclosure or repossession?

Yes. Filing bankruptcy immediately stops foreclosure and repossession with the automatic stay. There are time lines that need to be upheld. 

    •    In Chapter 13, you can repay missed mortgage or car payments over time and keep your home or vehicle.

    •    In Chapter 7, it may delay foreclosure or repossession long enough for you to make other arrangements.

We’ll work with you to determine the best strategy based on how far behind you are and what you want to keep.

      11. What do I need to get started?

Our free consultations does not require any paperwork or preparation to make a plan for your financial needs. 

Once you've paid your fee and signed your contract our office will begin processing the documentation required to file.

You’ll need to provide financial documents such as:

    •    6 months of most recent pay stubs

    •    2-4 years of tax returns

    •    All deeds and titles in your name

    •   3-6 months of Bank statements

    •    A certificate from a pre-filing credit counseling course (we’ll guide you through it)

Our team will walk you through each step, making the process simple and manageable.

     12. How much does bankruptcy at our firm cost?

Costs vary by chapter:

    •    Chapter 7: $1800-$2000

    •    Chapter 13: $3500-$4500

We offer payment plans for Chapter 7 and file your case quickly once you’re paid in full, so you can start getting relief sooner.

      13. Do I need an attorney to file bankruptcy?

While you’re not required to hire an attorney, bankruptcy is complex and mistakes can cost you your home, money, or discharge eligibility.

We ensure:

    •    Proper exemptions are applied

    •    All necessary documents are filed correctly

    •    You’re protected during court proceedings

    •    Creditors don’t violate your rights

Hiring an experienced law firm like ours gives you peace of mind and the best possible outcome.

      14. What is a reaffirmation agreement?
A reaffirmation agreement is a legally binding contract between you and a creditor that allows you to keep certain secured property—like a car—by agreeing to continue making payments after your bankruptcy case is filed. By reaffirming the debt, you are voluntarily choosing to remain personally liable for it, and the creditor agrees not to repossess the property as long as you stay current. This can be a useful tool if you’re trying to keep a vehicle or other essential asset, but it’s important to discuss the risks and benefits with your attorney before signing.

       15.  Can I purchase a new vehicle before filing?
In most cases, it’s best to wait until after filing your bankruptcy to make a major purchase like a vehicle. Buying a car right before filing can raise concerns with the court or trustee and may affect your eligibility or repayment plan. It may not be against the rules or law but we can not advise you to incur new debt before filing bankruptcy.

       16. Do I have to provide my title or registration for a vehicle I want to keep or not file on?
Yes, you’ll need to provide documentation for all vehicles you own, even if you plan to keep them or believe they don’t need to be included in the bankruptcy. This includes the title or registration. The court requires full disclosure of your assets, and your attorney will help determine how each vehicle should be handled in your case.