Jonesboro’s Best Bankruptcy Attorney

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 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 our Jonesboro bankruptcy attorney to have them get acquainted with your case and offer you sound advice.

Generally, most Chapter 7 bankruptcy cases are considered NO ASSET CASES, because many debtor’s assets are exempt and protected from liquidation by the Chapter 7 trustee. However, Chapter 7 cases are called a “liquidation” case and the trustee’s job is to realize the value of any non-exempt property and use those funds to pay something to creditors. Once the bankruptcy is discharged, a trustee or bankruptcy lawyer can be assigned to distribute liquid assets to creditors. In a 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. It’s important to remember that you are entitled to the same Discharge of debts in a Chapter 13, as you would get in a Chapter 7. Just because you’re paying a payment, doesn’t mean you must pay everyone 100% in full, unless you have an ability to.