Question 1

What is bankruptcy?

Accepted Answer

Bankruptcy is a federal process that gives individuals and families a fresh start when debt becomes overwhelming. It either eliminates certain debts (Chapter 7) or allows repayment through a structured plan (Chapter 13). It immediately stops collections, wage garnishments, repossessions, and foreclosures through what’s called the automatic stay.

Question 2

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

Accepted Answer

Chapter 7 – “Fresh Start”
 • Wipes out most unsecured debts like credit cards, payday loans, and medical bills.
 • Usually completed in 4–6 months.
 • Best for those with limited income or no assets at risk.
Chapter 13 – “Reorganization Plan”
 • Consolidates debts into one affordable monthly payment.
 • Lets you catch up on house, car, or tax payments.
 • Lasts 3–5 years, depending on your income and goals.

Question 3

Will I lose my home or car?

Accepted Answer

In most cases, no. Indiana exemption laws protect certain property. In Chapter 13, you can also repay arrears over time and keep your property. Every case is unique — we’ll review your situation during your consultation.

Question 4

Can bankruptcy halt wage garnishments and collections?

Accepted Answer

Absolutely! Once we file your case, the court issues an automatic stay that stops garnishments, lawsuits, and creditor calls right away.

Question 5

How long does bankruptcy take?

Accepted Answer

• Chapter 7: 4–6 months from filing to discharge.
 • Chapter 13: 36–60 months, depending on your plan.

Question 6

How much does it cost to file?

Accepted Answer

At Fugate Law Firm, we believe in transparent and affordable pricing.
 Typical costs include:
 • Attorney Fees: starting as low as $1,600 for Chapter 7
 • Court Filing Fee: $338
 • Credit Report & Counseling: about $30–$60 total
We also offer payment plans so you can get relief without delay.

Question 7

Does bankruptcy ruin your credit?

Accepted Answer

Not at all! Your score may drop initially, but most clients see improvement within 12–18 months. Once debts are discharged, your debt-to-income ratio improves — allowing you to rebuild faster than if you stayed buried in debt.

Question 8

Will I be able to keep my tax refund or future income?

Accepted Answer

It depends on the timing of your filing and the type of bankruptcy. We'll help you plan your case to protect as much of your refund and income as legally possible.

Question 9

Can bankruptcy eliminate medical bills, credit cards, or payday loans?

Accepted Answer

Yes. Most unsecured debts like these are fully dischargeable in Chapter 7 and included in Chapter 13 plans.

Question 10

Will bankruptcy prevent foreclosure or car repossession?

Accepted Answer

Yes, it will! Filing stops both immediately through the automatic stay, and Chapter 13 lets you catch up on missed payments to save your property.

Question 11

Do both spouses have to file?

Accepted Answer

Not necessarily. Married couples can file jointly or individually, depending on who owes the debts. We’ll help determine which option offers the best protection.

Question 12

What documents do I need to get started?

Accepted Answer

• 6 months of pay stubs
 • Last 2 years of tax returns
 • Bank statements
 • List of debts and creditors
 • Vehicle & property info
We’ll provide a simple checklist and help you every step of the way.

Question 13

When will creditors stop calling?

Accepted Answer

Once we file your case, the calls usually stop within 24 hours. All creditors are notified electronically through the court system.

Question 14

What happens at the 341 Meeting of Creditors?

Accepted Answer

This short meeting (usually by phone or Zoom) allows your trustee to verify your paperwork. It’s not a court hearing, and most last less than 10 minutes. We’ll be right there with you.

Question 15

Why choose Fugate Law Firm?

Accepted Answer

• Decades of local experience in the Northern District of Indiana
 • Flat fees & flexible payment options
 • Fast filing to stop garnishments immediately
 • Friendly, judgment-free support
 • Offices serving Hammond, South Bend, and surrounding areas

Bankruptcy FAQs