CALL NOW FOR HELP!
Bankruptcy can give you a fresh start! The bankruptcy laws are a powerful tool for debtors. When you file bankruptcy you obtain immediate and permanent relief. Creditors are no longer allowed to harass you. While it is true that many people start bankruptcy with anxiety, it is also true that most people finish bankruptcy pleased that they took the step and feeling a new lease on life .
If you feel overwhelmed with debt, don’t delay! Call me at 479-968-4747 for a free, no obligation consultation. I will work with you to see if filing bankruptcy will give you the relief you need. If bankruptcy is the right choice, we can move quickly to bring about changes in your life.
SOME BASIC INFO ABOUT BANKRUPTCY
People thinking about filing bankruptcy in Arkansas often have many questions, and I will try to answer a few of them here. Please note that the information below is only of a general nature. Since the legal problems of each person depends upon his/her particular facts, this information should not be relied upon as specific legal advice for your particular situation. That is why we offer you a free office consult!
- What debts can be discharged when I file for bankruptcy?
Provided that you list them, almost all of your debts will be discharged (credit cards, medical bills, etc.). There are some debts that cannot be discharged (e.g. child support, student loans, and many types of taxes). - Which type of bankruptcy should I file?
There are two types of consumer bankruptcies, Chapter 7 and Chapter 13. Chapter 7 is often likened to an “outright liquidation”. All of your dischargeable debts are totally discharged. In Chapter 13 you are required to pay a portion of your debt (e.g. 10% on the dollar). The court looks at your income and property and applies
a means test to see whether you have the ability to pay part of your debt. If not, you are eligible for Chapter 7. If so, you are required to file a Chapter 13. Most people prefer to file a Chapter 7 if their means test allows it. However, in some cases a Chapter 13 is needed even when the person is eligible for a Chapter 7. An example would be when the person wants to keep their car or house, but is behind in payments. Chapter 13 allows the person to “catch up” on payments, whereas in a Chapter 7 a creditor has a right to reclaim its property if you are not current on payments. - After I file, how long does bankruptcy take?
It depends on the type of bankruptcy you file. In Arkansas a Chapter 7 bankruptcy can be completed in as little as four or five months from the time you file. A chapter 13 bankruptcy will typically take from three to five years. - Can I keep my property in bankruptcy?
You can keep your property if you don’t have too much! A certain amount of your property is treated as exempt. In Arkansas you can chose either federal exemptions or Arkansas exemptions, depending on which benefit you the most. Exemption law is complex. My expertise can be helpful in maximizing your exemptions. Exemptions do not protect secured property on which you are still paying (e.g. house or car), but you can normally keep such property in a Chapter 7 if you are current on your payments. - Do I have to list all my property and debts on the bankruptcy forms?
Yes, under penalty of perjury, you must list all property and debts. The bankruptcy trustee has the right to know about all your property as part of his duty to protect the creditors’ interests. This does not necessarily mean the creditors will receive anything, but you must list all your property. You may not want to list a certain debt because you intend to pay it back. You are still required to list it. You can explain to the creditor that you will voluntarily repay the debt after you file, even though it is being discharged in bankruptcy. - How much does it cost to file for bankruptcy?
Attorney fees depends on how complex your bankruptcy is (e.g., number and amount of debts, amount of property, need to reaffirm debts to keep property, stopping garnishments, etc.). Fees for a Chapter 7 consumer bankruptcy usually run from $1,100 to $1,500. Attorney fees for a Chapter 13 bankruptcy are usually $3,000 to $3,500, with a large part of the fee being paid out over the three to five year Chapter 13 plan, rather than up front. There are also approximately $400 in expenses involved, consisting of the court filing fee and required credit counseling fees, resulting in a total cost of from $1,500 to $1,900 for a Chapter 7 bankruptcy. My office can arrange for payment plans.
Call my office!
I’m sure you must have more questions! If you are thinking of filing bankruptcy in Arkansas and do not have an attorney, please call to schedule an appointment for a free initial consultation. There is no commitment on your part. I will perform an initial analysis of your situation to see if filing for bankruptcy is the right choice for you. If it is, I will give you an estimate of the total cost. I can arrange a payment plan. If you hire me, I will give your case careful and prompt attention. My phone number is 479-968-4747.