Complete Legal Advice Through Bankruptcy
Arkansas’ Best Bankruptcy Attorney
If you’re dealing with a large amount of burdensome debt that is keeping you in a hole, it’s important to seek economic assistance immediately before it gets worse. The experienced bankruptcy attorney at Crawley Law Firm can provide informed financial suggestions and guidance to residents of Northeast Arkansas area. We have vast knowledge in the field, so we are uniquely specialized to give you the right information. You can get yourself out of debt and into better financial standing with solid planning and restructuring. Because there are so many nuances in bankruptcy law, it’s crucial that you seek the help of a qualified bankruptcy lawyer who can get you on the right track.
Filing For Bankruptcy In Arkansas
A bankruptcy attorney can go through the myriad of options available in these circumstances and aid you in selecting the one that makes the most sense for your particular situation. This area of law is broken down into chapters, of which we commonly proceed with Chapter 7 and Chapter 13 bankruptcy among others. Depending on the details of your case, these alternatives can help you get your affairs in order with time. You can consult with Mr. Crawley to have him get acquainted with your case and offer you sound advice.
Generally, Chapter 7 bankruptcy will consist of turning a debtor’s non-exempt assets into cash. This type of bankruptcy is called a “liquidation” bankruptcy and is available to people who don’t make enough money to pay their debts. Once the bankruptcy is discharged, a trustee or bankruptcy lawyer can be assigned to distribute liquid assets to creditors. In Chapter 13 bankruptcy, a restructuring of debt payments takes place, which allows debtors to maintain major assets. Some of these exemptions could include assets like your home, retirement accounts, and car among others. A bankruptcy attorney can settle what are exempt and non-exempt items, and a judge will approve a repayment plan. These arrangements can span three to five years or more, and any remaining debts are cleared after that.
Bankruptcy FAQs – Understanding The Chapters Of Bankruptcy
Depending on the circumstances, different types of bankruptcy are appropriate. They are referred to by their chapter titles in the U.S. Bankruptcy Code. The most commonly filed chapters are 7, 11, 12, and 13.
Types of Bankruptcy
If you have accumulated significant debt and are no longer able to pay off your creditors, bankruptcy can be a useful tool for getting back on track financially. There are different types of bankruptcy that are best for various situations. Working with a bankruptcy lawyer is the best way to understand which type of filing is best for your financial needs. At Crawley Law Firm, we specialize in helping clients navigate several types of bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy discharges you of unsecured debt such as medical and credit card bills. You are allowed to reaffirm debt and continue paying for your home and car. You DO NOT lose your assets. Chapter 7 bankruptcy is means tested, meaning you must be financially unable to pay your debts. Additionally, the discharge of debts through this method is available to individuals but not corporations. You must also meet criteria Mr. Crawley will discuss with you.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a filing for businesses. Instead of dismissing debt, it reorganizes the company’s finances and creates a payment plan to repay all creditors. The business still operates as normal, and the consumer feels no impact from the bankruptcy filing. It is a financial tool that benefits many companies that are struggling financially and gives them another chance to succeed.
Chapter 12 Bankruptcy
Chapter 12 bankruptcy is a filing designed specifically for farmers. When they fall behind on payments to their creditors, this filing allows them to restructure debt and pay over a period of time rather than in one lump sum. The farms operate as usual throughout this process. Filing for Chapter 12 bankruptcy often gives these businesses the time they need to pay off debt without having to close the business.
Chapter 13 Bankruptcy
Like Chapter 7 bankruptcy, Chapter 13 bankruptcy is a filing intended for individuals rather than businesses. However, Chapter 13 bankruptcy does not dismiss debt but rather allows you to restructure debt in a manageable way. Instead, you will develop a repayment plan for existing debts. This is carried out over three or five years, depending on your income and situation. Because you are not asking for debt elimination, there is no risk of losing property in a Chapter 13 bankruptcy filing. However, property values will be considered in developing your repayment plan.
Functions of Bankruptcy
A bankruptcy filing is not a cure-all for indebted people, but it can relieve a great deal of the burden of debt. Here is what bankruptcy is designed to do:
Eliminate Or Reduce Unsecured Debt
Nullify Certain Liens
Keep in mind that not every type of debt is avoidable (able to be eliminated) in bankruptcy. In later articles, as we explore each chapter, we’ll spell out the specific benefits, limitations, and applicability of each.
Halt Collection Attempts
Find a Lawyer To Help Navigate Bankruptcy
Bankruptcy is a complex subject with many nuances. Hiring a bankruptcy attorney is the best way to ensure you choose the correct filing to relieve you of substantial debt. Crawley Law Firm is here to help you find a reputable bankruptcy lawyer, so contact us today to get started improving your financial situation.
Schedule your consultation with our bankruptcy attorney in Arkansas today!
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We Serve All Of Northeast Arkansas including Jonesboro, Paragould, Forrest City, West Memphis, Mountain Home, Batesville, Helena, Cabot, Conway, Searcy, Maumelle, Sherwood, Jacksonville, Little Rock, and North Little Rock.
