Arkansas Bankruptcy Attorney

Do I qualify for bankruptcy?

Filing for bankruptcy under Chapter 7 or Chapter 13 can give you the breathing room you need to eliminate or pay back your debt. At Rainwater, Holt & Sexton, our Arkansas bankruptcy attorneys are here to help determine the type of consumer bankruptcy that works best for your financial situation.

The Chapter 7 Bankruptcy Means Test

If you’ve never filed bankruptcy before, the means test is the most important factor determining your eligibility to file Chapter 7 bankruptcy in Arkansas. The means test compares your household income to the median income for a household of the same size in Arkansas. You can find up-to-date income figures for households in Arkansas here.

If your household income is less than the median, you automatically qualify for Chapter 7 bankruptcy. If your household makes more than the median, the means test compares your income against your debts to determine if you have the “means” to pay repay your debts without filing Chapter 7. If your debts include excessive equity in a house or car, you must file under Chapter 13 to safeguard those assets.

Want to learn more? Download our Bankruptcy and Your Property PDFfor additional information about the means test and the requirements for filing under Chapter 7.

Chapter 13 Eligibility in Arkansas

To qualify for Chapter 13 bankruptcy, you—or you and your spouse, if you file joint bankruptcy—must:

  • show adequate income to meet the terms of a court-ordered payment plan;
  • demonstrate that your total secured and unsecured debt falls within limits set by the Bankruptcy Code; and
  • prove that you’ve filed state and federal income taxes for the past four years.

Bankruptcy Time Limits

The law places strict limits on how often you can file Chapter 7 or Chapter 13 bankruptcy—regardless of which type of bankruptcy you file first.

If you’ve filed bankruptcy before, our Arkansas bankruptcy lawyers can help determine if enough time has passed for you to be eligible to file again. We’ve created this Bankruptcy and Your Property PDF to help you learn more about filing multiple bankruptcies.

*We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.
*The No Fee Guarantee® does not apply to bankruptcy cases

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