Arkansas Bankruptcy Lawyers Discuss Debt Relief Options
September 30, 2013
When individuals can no longer pay back their debts, bankruptcy can help them get a fresh financial start. The Arkansas Bankruptcy Lawyers with Rainwater, Holt & Sexton explain that the process of bankruptcy is not cut and dry, and those considering filing for bankruptcy may have several options to choose from.
The American Bar Association outlines two types of personal bankruptcy most individuals can consider- Chapter 7 and Chapter 13.
Chapter 7 bankruptcies liquidate an individual’s assets to help pay off a large portion of his or her personal debts. In order to qualify to file under Chapter 7, potential claimants must pass the “means test” without having filed for bankruptcy in the past eight years. Chapter 7 bankruptcies can help clear debts and allow an individual to keep their home as long as payments have been made in a timely manner.
However, some people find Chapter 13 to work better for their financial situation. This type allows an individual to set up a court-ordered payment plan spanning three to five years in order to eliminate his or her debts.
Rainwater, Holt & Sexton’s Arkansas Personal Injury Lawyers understand how confusing the bankruptcy process can be and encourage anyone who is considering filing for such protections to discuss their legal options with an attorney.