What is Bankruptcy?
Bankruptcy is a legal proceeding in which one who cannot pay his or her bills can get a fresh financial start. Bankruptcy is a right provided to you under federal law. Filing bankruptcy immediately stops all of your creditors from calling, harassing, or trying to collect debts from you.
What can Bankruptcy do for me?
Eliminate your obligation to pay most debts
Stop foreclosure on your home and allow you to catch up payments
Prevent repossession of a car or other property
Stop wage garnishment, debt collection, and any creditor action
Prevent termination of your utility services
Allow you to challenge creditors who may be committing fraud
What's the difference between Chapter 7 and Chapter 13?
Is known as "straight bankruptcy" or "liquidation." A Chapter 7 bankruptcy lasts a few months, and allows you to discharge most unsecured debts like credit cards, repossessed cars, and medical bills. Most of the time, you can keep your car or house in a Chapter 7 if you are current on the payments.
Chapter 7 Basics
In a chapter 7 case, you ask the the Court to "wipe out" your debts. You usually have to give up property that is not "exempt," but most debtors in Arkansas are usually able to exempt out their property.
If you want to keep a home or car and are behind on the mortgage or car note, a chapter 13 case is probably more appropriate for you.
Secondly, if your income is "too high" (above state median for your family size), you will need to file a chapter 13.
Chapter 13 Basics
In a chapter 13 case, you file a "plan" showing how you will pay off some of your debts over the next 3-5 years.
A chapter 13 case is special, because it allows you to keep property - like a house or a car - that you might otherwise lose.
Your chapter 13 payments will be the same as your current car or house note, with a little extra added to catch you up.
You should consider a chapter 13 if you:
Own your home and you're in danger of losing it because of money problems
Are behind on debt payments, but can catch up if given time
Have valuable property which is not exempt, but you can afford to pay creditors over time.
How do I get started?
Fill out the form below, and we'll contact you to schedule your free phone consultation.
We'll call you and discuss getting started. If you decide to go forward, you will need to take a one-hour online credit counseling class.
We'll begin gathering your documents and building your case. We'll be with you every step of the way.