Meet Rebecca

A Single Working Mother of Two Young Kids

Rebecca is a single mother of two young kids. She works as an LPN in a local hospital. She does not receive very much child support. Her hours are steady, and her take home income is about $780 bi-weekly.(note: Rebecca is not a real person. She is a fictional example of one of our most common clients).

How Rebecca got into trouble

Rebecca can cover her monthly expenses if she is careful. However, over time she has built up about $12,000 in medical debt – including a weekend emergency room visit for her daughter’s asthma attack. She also has assorted other debt – cell phone bills, an old landlord bill, and a small credit card. Paying just the medical bills off, within 4 to 5 years, would require a monthly payment of 3%, or about $360.

A few months ago, she could not cover her summer electric bill, and she became desperate. She took out a payday loan for $500. The agency takes automatic drafts from her account, every payday, for $75. This does nothing to pay off the $500. It just pays for the interest.

The payday loan did not help her. She took out a title loan on her Ford Explorer and paid all her bills current. However, with an interest rate of 35%, her $4,750 loan costs her $224 every two weeks, or $487 monthly, just to cover the payments. If she does not make the payment, she loses her only transportation. Then she is out of a job.

Finally, she continued to lag on her utilities, and now faces a $798 shutoff notice.

"When Rebecca finishes her Plan, she will be completely debt free."

After struggling for months, she received a garnishment order from her employer. A local collection attorney can now take 25% of her gross pay, for an old medical bill. Now there is no way she can make her title loan and put food on the table. She saw our television commercials and gave us a call.

What can we do for her?

Rebecca needs a Chapter 13, and fast. The two critical issues are the garnishment and car loan. We need to stop the garnishment, and we need to protect her from repossession of her Explorer.

As soon as we file her case, we can stop the garnishment. This will get her grocery money back. She is protected, as long as she is in the bankruptcy, by the automatic stay. Creditors cannot take money out of her paycheck.

We will set up her Chapter 13 Plan to pay her title loan. This will do two things – it will reduce her interest rate from 35% to 4.75%, and it will allow us to extend the time to pay down the loan. If we set the Plan at three and one-half years, we can take her $487 monthly payment down to $131.


Payday Loan at $75 every two weeks: $162.37

Title Loan of $4,750, at $487 monthly: $487

Garnishment at 25% of her gross pay: $550


(without considering the $12,000 in debt still owing)


Chapter 13 Attorney fees and court costs: $88

Title Loan at 4.75% interest: 131


The Plan treats her medical, utility, cell phone, and other debts as “general unsecured.” The creditors will not be able to bother her while she is in the Plan. If she completes her Plan, those debts are cancelled by the discharge. She pays nothing on them.

Because we can include the attorney fees, filing fees, and credit counseling fees in the Plan, there is no up-front money required to file. The faster Rebecca can get us her paperwork, the sooner we can get her protected.

We are able to reduce her debt payments from $1,199 to $219 monthly, and discharge all the other debts lurking in the weeds. When she finishes her Plan, she is completely debt free. This is the power of Chapter 13 – we can cancel most debts, and restructure the debts that remain. All with no money required to file.


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Topeka Bankruptcy Attorney

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Garrett Law LLC
Topeka Bankruptcy Attorney
515 S Kansas Ave,
Ste 403,

Topeka, KS 66603
Local Phone: 785.276.9300
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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.