Is Bankruptcy Right for Me?

Serving Jonesboro & All of Arkansas Since 1990

Since 1990, DeLoache Law Office has helped individuals and couples find much-needed debt relief through filing Chapter 7 and Chapter 13 bankruptcies as well as credit restoration. With thousands of bankruptcy cases filed in the past 24 years, we have observed firsthand how filing for bankruptcy can reduce stress, improve family relationships, and dramatically improve a client's quality of life.

In our experience, most clients that come to our Jonesboro office turn towards bankruptcy after a life-changing event has occurred. Such events commonly include a sudden job loss, an injury or illness, a divorce, or an underwater mortgage. If you are struggling with debt and are interested in having an experienced legal professional help you determine if bankruptcy would benefit you, please contact an Arkansas bankruptcy attorney from our firm.

What Chapter of Bankruptcy is Right for You?

There are two main bankruptcy chapters for consumer debtors: Chapter 7 and Chapter 13. In short, Chapter 7 is best if you are seeking to quickly discharge your debt. Chapter 13 is best if you have a too high income for Chapter 7 or need to stop a foreclosure.

Chapter 7

Chapter 7 is known as the "liquidation bankruptcy," because in theory, a debtor turns over their assets to the bankruptcy trustee, who liquidates the assets to pay off creditors.

In reality, most consumer bankruptcies are "no asset" cases as all of the debtor's assets either have little equity or are exempt under state or federal law. In effect, most Chapter 7 cases do not result in the loss of any assets. Rather, the debtor receives a discharge for most or all of their unsecured debt. Due to the sweeping relief provided by Chapter 7, it is only available to debtors with little to no disposable income.

Chapter 13

For those whose incomes are too high to qualify for Chapter 7, they can seek relief by filing a Chapter 13, which has its own benefits:

• Chapter 13 is essentially a debt repayment plan that lasts for 3 to 5 years.
• Chapter 13 debtor only pays their unsecured creditors what they can afford to pay.
• Unlike a credit counseling repayment plan that requires that a credit counseling agency negotiates with the creditors, there is no negotiation involved in Chapter 13, nor are there any interest charges.
• Chapter 13 is a critical tool for homeowners to save their homes from foreclosure.

How Bankruptcy Affects Tax Debt

If you have tax debt, bankruptcy may allow you to get a handle on it. While a Chapter 7 will eliminate income tax debt that is older than three years, a Chapter 13 can repay tax debt that is not dischargeable under Chapter 7.

Take the next step. Call our office today!

If you are dealing with uncontrollable debts, you could benefit by speaking to a Jonesboro bankruptcy lawyer from our firm. In a free, initial consultation, we will review your situation, find out if bankruptcy is right for you, and if so, which chapter you should file under.

We proudly serve the areas of Jonesboro, West Memphis, Paragould, Blytheville and surrounding cities in all bankruptcy matters.