A Chapter 7 Bankruptcy in Arkansas is a straight bankruptcy liquidation, meaning what you classically think about bankruptcy – you file and all your debts are relieved. As part of this, all your non-exempt assets are given to a Chapter 7 Trustee to be sold, and the resulting profits are distributed to your creditors. Do not worry, in Arkansas you have two forms of exemptions you can choose from: You can take the Arkansas exemptions, which will give you almost limitless value in your home. The other option is to take your federal exemptions, which for most people includes all or almost all of your personal property. Call us today, as experienced Arkansas Bankruptcy Attorneys, we can help you with your options for exemptions. We will sit down with you and discuss all the options you have.
Some debts in a Chapter 7 Bankruptcy are not dischargeable. These generally include taxes, support obligations, or student loans (although there is some movement about student loan discharges in Arkansas right now).
There are protections in an Arkansas Bankruptcy for things like qualified retirement funds such as IRA and 401(k) plans, but this is an area where you need an experienced Arkansas Chapter 7 Bankruptcy Attorney to assist you. These rules and amounts are complex – know your rights before you file.
The typical bankruptcy lasts about four (4) months. It generally only requires you to appear in court one time before a Chapter 7 Bankruptcy Trustee and not the Judge. Your 341 meeting of creditors, as it is called, does not generally last more than ten (10) minutes, and generally no creditors show up to ask any questions. We will be by your side during this meeting which we will prepare you for.
After you meet with the Trustee, we will assist you in any reaffirmation agreements you want to execute so that you can keep your house or your car. This process allows you to continue to pay on the debt, and the debt survives bankruptcy so you can keep your house or car(s). Generally after ninety (90) days, you will receive your discharge notice in the mail, and your bankruptcy is complete.