Chapter 7 bankruptcy is called a “liquidation” bankruptcy case. It is typically a short proceeding, normally lasting 4 to 5 months, and involves a person, married couple, or business seeking to discharge – wipe out – the majority of their debts.
Chapter 7 bankruptcy is the most common form of bankruptcy, and is most useful when someone simply does not make enough money to pay his or her debts.
Many debts can be wiped out in a Chapter 7 bankruptcy. Among those debts are:
- Personal loans
- Credit cards
- Repossession and foreclosure deficiencies
- Auto accident claims
- Business debts
- Negligence claims
Chapter 7 bankruptcy, however, does not end your responsibility to pay all of your debts. For example, the following types of debts are NOT discharged in Chapter 7:
- Many types of tax debts
- Money owed for child or family support
- Criminal fines and restitution
- Claims for auto accidents involving DWI
- Student loans
Most people do not lose any property when they file Chapter 7 bankruptcy, and get to keep their personal belongings. It’s important to remember that this is our role – to make sure that we analyze your situation completely to be sure that you can protect what you own. If our discussion and analysis shows that you would lose property if you filed for Chapter 7 bankruptcy, we will discuss it together to come up with the right solution for you.
Contact us online or call 870-972-1150 to start the process. Set up a free, no-obligation consultation appointment with an experienced Arkansas bankruptcy lawyer.