Bankruptcy Law

The type of bankruptcy you should file—if any—depends on a number of factors, such as the types of debts, the amount of debt, what your income is like, and
your goals. There are also certain eligibility requirements for each Chapter of bankruptcy.

Get an overview of Chapter 7 vs. Chapter 13 bankruptcies in our side-by-side comparison.

All bankruptcy filings are public record, which means anyone can theoretically see who has filed a bankruptcy. Sometimes an employer will receive direct
notice of an employee’s bankruptcy, such as if the employee owes the employer money, or if the employee files a Chapter 13 bankruptcy and makes payments by payroll deduction. In other cases, an employer (or potential employer) may indirectly become aware of an employee’s bankruptcy, such as by performing a credit report or case search in the Federal database.

However, the Federal bankruptcy law provides certain protections against employment discrimination for people who are in an active bankruptcy or who have been in the past. Speak to an attorney for more information about these
protections.

The length of the bankruptcy process depends on the type of bankruptcy. Most Chapter 7 bankruptcies take 3–4 months, where as most Chapter 13 bankruptcies take 3–5 years (plus a month or two).

There is no requirement to hire a bankruptcy lawyer to file your own bankruptcy. The forms to file a bankruptcy are publically available from the U.S. Courts’ website.

Whether you should hire a lawyer mostly depends on the complexity of your situation and how comfortable you would be filing the case yourself.
Bankruptcy law is a highly complex and specialized area of law. Additionally, most districts have their own Local Rules (including Nebraska), as well as their
own practices and traditions that experienced bankruptcy attorneys are aware of.

Most bankruptcy attorneys offer a free consultation, which will help you get a feel for the potential complexities your situation may pose, as well as the
attorney’s knowledge, character, and friendliness.

The cost to file a bankruptcy varies greatly depending on your situation and the type of bankruptcy you need to file.

Chapter 7 bankruptcies often cost less than $1,500 and sometimes even less, sometimes more, depending on complexity.

For Chapter 13 bankruptcies, the Bankruptcy Court for the District of Nebraska sets attorney fees at $4,000 (paid through the Chapter 13 Plan) for most cases.
Because most of the attorney fees in a Chapter 13 are paid through the Plan, the upfront costs are typically much less than a Chapter 7.

It is also important to understand how different attorneys quote their fees. For example, not all attorneys include the Court’s filing fee ($338 for Chapter 7,
$313 for Chapter 13) in their quotes. If you have a consultation with any bankruptcy attorneys, you should how their quotes are broken down.