Jonesboro Chapter 7 Bankruptcy Attorney

Explore Your Debt Relief Options - Call Us Today

Are you in a position of financial distress but unsure if bankruptcy is right for you? If so, our Jonesboro County Chapter 7 lawyer at DeLoache Law Office may be able to assist you. We understand how daunting bankruptcy can seem. However, by dispelling any misconceptions, we can help you make beneficial decisions to help restore and recover your debt.

What is Chapter 7 Bankruptcy?

Also known as liquidation bankruptcy, Chapter 7 allows qualifying debtors to surrender certain assets to discharge unsecured debts. This type of bankruptcy is a relatively easy way to complete a bankruptcy discharge.

Certain property is exempt in a Chapter 7 bankruptcy case. This means that the property cannot be sold or otherwise turned over to creditors. Federal law lists several bankruptcy exemptions, and Arkansas also has its own exemptions for qualifying residents.

Exempt property in the state of Arkansas includes:

• Homestead: Between $800 or $2500, or 80 acres
• Vehicle: $1200
• Personal Property: All clothing, $200 or $500 for all other property
• Wages: 60 days of unpaid earned wages

How Do I File for Chapter 7?

To be eligible for Chapter 7 in Arkansas, the debtor must prove they are unable to pay their debts with their income. This is done through the Chapter 7 means test. The means test deducts certain expenses from a debtor's average monthly income to determine your disposable income for repaying debts.

Eligibility Criteria for Chapter 7 Bankruptcy

The Chapter 7 Means Test examines the following in determining your eligibility:

1. Income Comparison with Arkansas Median: The income of one wishing to liquidate assets under Chapter 7 cannot exceed the household median income in Arkansas. If a debtor's income is less than the household median income, he or she automatically qualifies for Chapter 7.
2. Assessing Disposable Income for Debt Repayment: Disposable income is the portion of income left over after all necessary monthly bills and payments have been made. If disposable income exceeds a certain amount, the debtor does not qualify to file for Chapter 7 bankruptcy.

Those who do not qualify for Chapter 7 may be able to find debt relief through Chapter 13 bankruptcy.

End Creditor Harassment with Chapter 7 in Jonesboro

Once you demonstrate bankruptcy eligibility, you can file a bankruptcy petition. Filing for Chapter 7 will invoke an "Order for Relief" for creditors. This "automatic stay" limits creditors from seeking further collection or forced repayment. It stops wage garnishment or property liens during the course of the bankruptcy process.

During this time, the court assumes control over the debtor's property and debts. The debtor will need the court's consent to make any decisions regarding these items.

A bankruptcy trustee will also be appointed to oversee the task of liquidating proper assets for the benefit of the creditor. Once the process concludes, most debts (excluding those left out by the court's discretion) will be discharged.

Over 20 Years of Chapter 7 Bankruptcy Experience in Jonesboro

Due to the negative connotation surrounding bankruptcy, it is not uncommon for people to be hesitant about filing. However, bankruptcy can provide the opportunity for a fresh financial start. There are various bankruptcy options, each designed for individuals in specific financial circumstances.

Our Arkansas bankruptcy law firm has helped thousands of people with their bankruptcy cases in Arkansas over the last 20+ years. Although filing for bankruptcy can be a troubling and difficult task, our experienced team is here to assist you. We have the experience, knowledge, and resources you need to make the best decision about your financial future. Regain your financial footing - call our offices today.