Benefit from 20+ Years Experience
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 and there are a various bankruptcy
options - each designed for individuals in specific financial circumstances.
One of these types of bankruptcy is referred to by its location in Chapter
7 of the Federal Bankruptcy Code. Our firm has more than 20 years of experience
handling Chapter 7 bankruptcy cases throughout Jonesboro County.
If you are considering filing for Chapter 7 bankruptcy, we can guide you
through the process. Contact our firm to
schedule a consultation today.
Also known as liquidation bankruptcy, Chapter 7 is a straightforward means
by which the debtor surrenders certain assets in order to repay a debt
in part or entirely. In order to be eligible to file for Chapter 7 bankruptcy,
the debtor will need to prove current monthly income and the size of the
How do I file for Chapter 7?
A debtor wishing to file must first pass the Chapter 7 Means Test, which asks:
Is the debtor's income more than the median for his or her household
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
If the debtor's income exceeds the median, is the disposable income
enough to repay part of the debts?
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.
Put a stop to creditor harassment for good!
Once you demonstrate eligibility by passing the Means Test, the process
begins. Filing for Chapter 7 will invoke an "Order for Relief"
for the filing individual's creditors.
This "automatic stay" limits creditors from seeking further collection or forced repayment such as 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 creditors
and once the process concludes, most debts (excluding those left out by
the court's discretion) will be discharged.
Request Your Free Consultation Today
Our 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.
To learn more about Chapter 7 bankruptcy and to determine whether it is
the right option for you,
contact the Jonesboro bankruptcy lawyers at our firm today.