Benefits of Bankruptcy in Arkansas
Learn How Filing for Bankruptcy Can Help You
Have horror stories from friends and family members regarding bankruptcy stopped you from filing? While filing for bankruptcy isn't for everyone, it can be of great benefit to those who are drowning in debt. At DeLoache Law Office, our Jonesboro bankruptcy lawyer understands how frustrating and overwhelming being in debt can be, which is why we strive to help everyone who seeks our firm's assistance.
We are prepared to help you throughout the entire bankruptcy process—from filling out and filing the correct paperwork to representing you in bankruptcy court, if necessary. With our firm, you can rest assured we work for the best outcome possible for your bankruptcy case.
To learn more about DeLoache Law Office or to schedule a free consultation, be sure to contact our firm today.
What Happens When You File for Bankruptcy?
The entire bankruptcy process is fairly quick—about a year—compared to other cases the judicial system addresses. This means that you can start to restore your credit and life within a reasonable timeframe instead of struggling for years.
While filing for bankruptcy may damage your credit for a certain amount of years, there are many credit restoration methods available. Bankruptcy allows you to rebuild your life with a clean line of credit.
The Automatic Stay in Bankruptcy
Did you know that once you file for bankruptcy, there is an automatic stay placed on your account? This automatic stay means most creditors have to stop contacting you and ends most collection efforts.
With the automatic stay, you can get relief from:
- Harassing collection letters
- Calls from creditors and collection agencies
- Lawsuits from creditors
- Wage garnishments
- Foreclosure proceedings
If you hire a bankruptcy attorney to help you during your case, they can handle all remaining creditor calls on your behalf, so you do not feel harassed or bombarded.
How Bankruptcy Affects Tax Debt
If you have tax debt, bankruptcy may allow you to get a handle on it. While a Chapter 7 will eliminate income tax debt that is older than three years, a Chapter 13 can repay tax debt that is not dischargeable under Chapter 7.
Benefits of Chapter 7 vs. Chapter 13 Bankruptcy
There are two main bankruptcy chapters for consumer debtors: Chapter 7 and Chapter 13. In short, Chapter 7 is best if you are seeking to quickly discharge your debt. Chapter 13 is best if you have a too high income for Chapter 7 or need to stop a foreclosure.
- Chapter 7: This form of bankruptcy can cancel all your debts, but also may also force you to liquidate some or all of your property to repay creditors. Almost all types of debt can be eliminated via Chapter 7 bankruptcy except those involving child support, most tax debts, and student loans
- Chapter 13: Want to protect your property? Chapter 13 bankruptcy allows you to keep your property, paying back all or a specific amount of your debts through a repayment plan. It may be ideal for you to file for this type of bankruptcy if you have the appropriate amount of income to meet payment obligations and your debt isn't considered too high.
Let Us Help You File for Bankruptcy
Do not file for bankruptcy without a lawyer's assistance and risk getting denied. Contact DeLoache Law Office today to learn how we are here to help you start a new, debt-free life. We offer free, no-obligation consultations, taking all the pressure off of you during the process. We can discuss all viable options with you, as well as the potential outcomes for each option.
Filing for bankruptcy is scary— but you don't have to do it alone. We understand how stressful bankruptcy can be, which is why we have dedicated our working lives to guiding Arkansas residents through this process. Our bankruptcy firm is here to help you throughout your bankruptcy filing.
We proudly serve the areas of Jonesboro, West Memphis, Paragould, Blytheville and surrounding cities in all bankruptcy matters.
