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How to File Bankruptcy in Arkansas: A Comprehensive Guide
Understanding Bankruptcy Types
Filing for bankruptcy in Arkansas involves choosing between different types of bankruptcy. The most common types are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often called liquidation bankruptcy, involves the sale of non-exempt assets to pay off creditors. It is suitable for those with limited income.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, known as wage earner's plan, allows debtors to keep their property and pay debts over time, usually three to five years.
Eligibility Requirements
Before filing, ensure you meet specific eligibility requirements. Consider factors such as your income, assets, and debts.
- Means Test: Determines eligibility for Chapter 7 based on income.
- Credit Counseling: Must be completed within 180 days before filing.
Steps to File Bankruptcy
- Gather Financial Documents: Collect all relevant financial documents, including tax returns, pay stubs, and a list of assets and liabilities.
- Complete Bankruptcy Forms: Accurately fill out required bankruptcy forms detailing your financial situation.
- File the Petition: Submit your completed forms to the Arkansas Bankruptcy Court.
- Attend the Meeting of Creditors: Participate in a meeting with creditors to discuss your financial situation.
- Complete Debtor Education Course: After filing, complete a debtor education course before debts can be discharged.
If you're unsure about the process, consulting a bankruptcy attorney in Memphis, TN might provide further clarity.
Impacts of Bankruptcy
Filing for bankruptcy can significantly impact your financial life, including your credit score and ability to secure future loans.
- Credit Score: Bankruptcy remains on your credit report for up to 10 years.
- Property: Some personal property may be exempt, allowing you to keep it.
Alternatives to Bankruptcy
Consider alternatives before filing for bankruptcy. These might include debt consolidation, negotiation with creditors, or seeking assistance from a bankruptcy attorney in Mesa, AZ who specializes in financial restructuring.
FAQ
What is the cost of filing bankruptcy in Arkansas?
Filing fees for Chapter 7 are approximately $335, and Chapter 13 fees are around $310, excluding attorney fees.
Can all debts be discharged in bankruptcy?
Not all debts can be discharged. Common exceptions include student loans, child support, and certain tax debts.
How long does the bankruptcy process take?
Chapter 7 typically takes 4-6 months, while Chapter 13 takes 3-5 years to complete.
This guide will help you understand how filing bankruptcy works in Arkansas, even if you don't have an attorney to help you.
National Forms * - Official Bankruptcy Forms (this link will take you to www.uscourts.gov) - U. S. Courts Services and Forms - National Archives and Records ...
Here, you'll find an explanation of Chapters 7 and 13, checklists to help you understand the process and stay organized, and Arkansas's property exemption laws ...
