Bankruptcy FAQs
Frequently asked questions
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.
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.
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.
Absolutely! Once we file your case, the court issues an automatic stay that stops garnishments, lawsuits, and creditor calls right away.
Chapter 7: 4–6 months from filing to discharge.
Chapter 13: 36–60 months, depending on your plan.
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.
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.
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.
Yes. Most unsecured debts like these are fully dischargeable in Chapter 7 and included in Chapter 13 plans.
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.
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.
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.
Once we file your case, the calls usually stop within 24 hours. All creditors are notified electronically through the court system.
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.
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