When you find yourself in debt as a result of unexpected life changes, such as job loss, illness, disability, divorce, or a family member’s death, filing bankruptcy may be an option for a new beginning. Bankruptcy can eliminate an individual’s personal liability for some or all of his or her debts.
At Rainwater, Holt & Sexton Injury Lawyers, our experienced Arkansas bankruptcy lawyers can provide you the legal advice you need to make sure your claim best fits your financial situation. Most individuals file for Chapter 7 or Chapter 13. If you need help determining which option best meets your needs and will provide you a fresh start, call Rainwater, Holt & Sexton at (800) 767-4815. We’ll help you weather the storm.
Chapter 7 is often referred to as liquidation bankruptcy or straight bankruptcy, because it is usually the most simple. To file Chapter 7 bankruptcy, you must fill out a debtor’s petition. Once the petition is complete, a trustee will be appointed to oversee your case and an automatic stay will come into effect. The automatic stay keeps creditors from collecting most of your debts from you during this process, which usually lasts three to four months.
The amount of equity in your property will determine whether or not you can keep it all after filing bankruptcy. If your property is fully exempt and you are current on your payments, you may keep it. However, if your property has more equity than can be exempted, the property is called a non-exempt asset. In this case, the trustee will take your non-exempt assets and sell them to pay your creditors.
Chapter 13 is known as reorganization bankruptcy and can be filed to protect your home against foreclosure, prevent repossessions, and stop lawsuits or garnishments. This chapter of bankruptcy also begins with a debtor’s petition and an automatic stay.
With Chapter 13, you have the opportunity to reorganize a repayment plan for your debts, allowing you to pay back some of your debts while discharging others. With the help of an Arkansas bankruptcy lawyer, you can propose a three- to five-year plan that prioritizes the payment of your debts. If approved by the court, a trustee will be appointed to receive monthly payments from you to pay your creditors and make sure you follow the terms laid out in your plan. Once you finish your repayment plan, you will be debt free minus any remaining non-dischargeable debts such as child support, student loans, taxes, or debt incurred through fraud.
*We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.
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We’ve got Arkansas covered. With four offices in Arkansas—Little Rock, Fayetteville, Conway, and Hot Springs—our Arkansas bankruptcy lawyers are easily accessible when you need help. Whether you have been involved in a commercial or consumer bankruptcy, get the help of an experienced attorney with a proven track record—contact Rainwater, Holt & Sexton Injury Lawyers. Fill out a free contact request form, which only takes a minute, or simply dial (800) 767-4815 and tell us your story.