Filing for Bankruptcy Prompts Numerous Choices for Debtors
When people find themselves struggling to pay bills or make ends meet, filing for bankruptcy may be an effective means of regaining financial freedom. But there can be a number of choices involved during the process, and the Arkansas bankruptcy attorneys with Rainwater, Holt & Sexton are here to guide you through the process.
The first and most important decision is whether to file Chapter 7 or Chapter 13 bankruptcy. Chapter 7 allows for debtors to liquidate their assets as a method of collecting enough money to pay off debts, while Chapter 13 establishes a financial plan that lets debtors pay back their creditors over a time period of three to five years typically.
Either type of filing will also force debtors to consider what debts they hope to eliminate through the proceedings, as well as which assets they may choose to keep. The U.S. Courts explain a bankruptcy filing will often allow debtors to protect homes, cars, and certain other necessities through a stay.
Perhaps the most important choice an individual will make prior to filing for bankruptcy is whether or not to hire a bankruptcy attorney to assist with the process. The attorneys at Rainwater, Holt & Sexton explain that while there are no laws requiring an attorney to file for bankruptcy, doing so may help protect debtors rights under the law.
We are here to answer any questions you may have about filing for bankruptcy by calling (800) 767-4815.