Bankruptcy Basics

What is Bankruptcy?

Bankruptcy is a legal means to financial relief. It is designed to help people that have fallen on hard times whether they are behind on payments or just struggling to make their payments each month.

What kind of financial problems can Bankruptcy help with?
Vehicle Repossessions Foreclosures Lawsuits and Wage Garnishments Credit Card Debt Medical Debt Taxes Harassment from Creditors Loss or change of Income
Are there different kinds of Bankruptcy?

Yes, there are different kinds of bankruptcy and you may qualify for more than one kind. Our firm handles Chapter 7 and Chapter 13 bankruptcies. For more information, please see our Services page or give us a call today for a free consultation at 501-760-0882.

The cost of a bankruptcy will vary depending on what type of bankruptcy you file.

Yes, there are different kinds of bankruptcy and you may qualify for more than one kind. Our firm handles Chapter 7 and Chapter 13 bankruptcies. For more information, please see our Services page or give us a call today for a free consultation at 501-760-0882.

How much does Bankruptcy cost?

The cost of a bankruptcy will vary depending on what type of bankruptcy you file.

For a Chapter 7 Bankruptcy, our price starts at $1,200.00 for non-business cases. This amount includes all costs associated with your bankruptcy: court fees, required classes, credit reports, and attorney fees. The Chapter 7 fee can be paid all at once or paid out over time prior to filing.

For a Chapter 13 Bankruptcy, attorney fees are paid through a monthly payment to a trustee. However, filing costs typically range from $400.00 to $450.00. This includes court fees, required classes, credit reports, and tax transcripts. Typically, we can file a case for as little as $100.00 down.

Will I have to appear in front of a judge?

Typically, no. In both kinds of bankruptcy, you will simply meet with a trustee near the start of your case, who will ask you some questions under oath. The trustee is just another attorney, not a judge. Your attorney will be present with you during this meeting and can help you in case you need help answering a question or providing information to the trustee.

Do I need an attorney to file bankruptcy?

No, but it is highly recommended that you hire an attorney to guide you through the process and prepare the paperwork for you. Even the Federal Judiciary recommends that you hire an attorney:

“Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes.”

Administrative Office of the U.S. Courts on behalf of the Federal Judiciary

If you are experiencing any financial problems, we suggest talking to an attorney before making any decisions. We provide free consultations so that you can fully understand your options before deciding to file.

Getting Started

How do I start/what is involved?

Call us for a free consultation.

During your consultation, we will ask for some basic information (regarding your income, expenses, property, and debts) and from that we will be able to tell you what kind of bankruptcy you qualify for, what kind of bankruptcy we recommend for you, and how much it will cost.

We are offering same day or next day appointments to best fit your schedule.

Do I need to bring anything to my initial consultation?

We recommend that you bring a few recent pay stubs with you. If you have any particular bills or other items that you are concerned about, feel free to bring those as well.

If your initial consultation is taking place over the phone, you may submit your documents by email to or fax to 501-267-5435.

What kind of payments does Lambert & Perry Law Firm accept?

We accept cash (in office only), debit cards, checks, and money orders. We can take debit card payments over the phone and you can schedule recurring payments if you wish.

We cannot accept a credit card payment from you if you are preparing to file bankruptcy. However, if a friend or relative who is not in bankruptcy is paying your fee, they can use a credit card.

How quickly will my bankruptcy be filed?

We can usually have a case ready to file within a few days. If there is an emergency, then we will try to get the case filed within 24 hours.

Vehicle Repossesion

I am behind on my vehicle payment, can bankruptcy help?

Yes! A Chapter 13 Bankruptcy can help you keep a vehicle even if you are behind on payments. Once your case is filed, your vehicle will be protected from repossession.

I was told that my vehicle will be repossessed, can bankruptcy help?

Yes! Filing for bankruptcy can stop a pending repossession, but we will need to move quickly to make sure your vehicle isn’t picked up.

My vehicle was already repossessed, what can I do?
If your vehicle was recently repossessed, we may be able to get it back by filing for bankruptcy. Call our office ASAP because we only have a short time to get the vehicle back. If it is too late to get it back, bankruptcy will help you get out of any remaining debt owed on the vehicle. Usually when a vehicle is repossessed, it is resold and then you can be sued for any remaining debt, but bankruptcy can help you avoid that.


I am behind on my mortgage, can bankruptcy help?

Yes! Chapter 13 Bankruptcy can give you the time you need to catch up on your mortgage payments, without the looming threat of foreclosure.

My mortgage company is threatening foreclosure, can bankruptcy help?

Yes! Chapter 13 Bankruptcy can stop a foreclosure from going forward. Call our office and we will help you come up with a Chapter 13 payment plan to catch up the mortgage payments.

There is a foreclosure sale date on my home, can bankruptcy help?

Yes, but you should contact our office ASAP because we will need to prepare and file your paperwork with enough time to notify the mortgage company before the sale date.

Lawsuits and Wage Garnishments

I am being sued for a debt, can bankruptcy help?

Yes! Typically, if you are being sued for a prior debt, the creditor can get a judgment against you and start to garnish your wages or bank account or put a lien on your home. Filing for bankruptcy can stop the lawsuit in its tracks.

I have been served with a garnishment, can bankruptcy help?

Yes! Filing bankruptcy will stop a garnishment before it starts. You can’t be garnished during bankruptcy and completing your bankruptcy will permanently remove the garnishment, so you don’t have to worry about it anymore.

My wages are being garnished, can bankruptcy help?

Yes! Even if the garnishment is already active, filing for bankruptcy can stop the garnishment from taking any more of your hard-earned money. Call us ASAP so we make sure your next paycheck is protected!

Credit Card Debt

Can bankruptcy help me get out of credit card debt?

Yes, it can! Credit card debt is one of the primary reasons many people file for bankruptcy. In most cases, bankruptcy will clear away credit card debt. Even when some or all of the debt will be repaid, bankruptcy allows for more affordable and manageable payments.

Do I have to include all of my credit cards in bankruptcy?

Yes! It is required that you list all of your debts when filing for bankruptcy. But not all debts have to be treated the same in bankruptcy. That is something that you can discuss with your attorney during your free consultation.

Medical Debt

Can bankruptcy still help me if I only have medical debt?

Yes! Illness and lack of insurance coverage leave many people with overwhelming medical debt, but bankruptcy can wipe out that debt and allow you to start over.


I owe state and/or federal taxes. Can bankruptcy help?

Yes! Bankruptcy can help with tax debt. While not all tax debt is dischargeable, filing for bankruptcy can stop a lawsuit or garnishment from tax debt. It can also provide a more affordable payment plan than the state or the IRS may be willing to offer. Our experienced attorneys can go over this information and how it will apply to your situation during your free consultation.

What if I haven’t filed my taxes in a while?

You can still retain us to prepare a bankruptcy filing for you, but you will need to file your taxes ASAP. A bankruptcy can be dismissed (i.e. kicked out) for unfiled taxes. We will help you come up with a plan to get the taxes filed and still get relief from your debts.

Can I keep my tax refund if I’m in bankruptcy?

Typically, you will keep your refund during bankruptcy. However, there are some exceptions where the IRS, state, or child support office may offset your refunds. If you have any concerns, then your attorney can discuss how it works.

Harassment from Creditors

How can I stop creditors from calling me?

Yes! Once you file for bankruptcy, your creditors will receive notice of your bankruptcy, and they will not be allowed to contact you anymore.

Loss or Change of Income

I can’t afford to pay all my bills, can bankruptcy help?

Yes! Filing bankruptcy will eliminate your debts or reduce your debt payments, which will free up income to pay your everyday living expenses.

I am only making minimum payments on credit cards, can bankruptcy help?

Yes! Minimum payments are probably not even covering the interest, so it is unlikely the debt will ever be repaid. Bankruptcy allows you to break the cycle of never-ending interest and either eliminate the debt or pay it back with no more interest added.

Protecting your Property

Will I lose my home, vehicle, and personal property if I file bankruptcy?

No! There are exemptions in the bankruptcy code that allow us to protect your property. Without bankruptcy, creditors can put liens on your property and try to collect. We can help you protect your property while getting help with your debts. We will review how to do this during your free consultation.

Credit Concerns

Will bankruptcy ruin my credit?

No, credit can be rebuilt after a bankruptcy filing. It is true that bankruptcy will have a temporary impact on your credit but, with a little time and responsible credit habits, you can get your credit score back into good standing.

Will I still be able to get loans/credit after filing bankruptcy?
Typically, yes. While many lending decisions will involve other factors, such as your current income, many of our clients qualify for vehicle loans and other loans after they complete their bankruptcies. Many even qualify for home loans.
How do I rebuild my credit after a bankruptcy filing?

First, report your discharge to the credit reporting bureaus. Then, check your credit report to make sure it is updated. After that, make sure to stay current on your payments and do not use more credit than you need. There are lots of good articles online on how to manage credit and improve your credit score and these apply whether you have filed bankruptcy or not.

What if my vehicle is totaled or I need to finance a replacement?

In most cases, debtors can get financing for a replacement vehicle while they are in bankruptcy if their current vehicle breaks down or is totaled. This will require court approval, but our attorneys can walk you through that process.