Debt Liquidation Attorney Serving Clients in Jonesboro

What Assets Can Be Liquidated in a Chapter 7 Arkansas?

When considering declaring Chapter 7 bankruptcy, many individuals are initially concerned that they will lose all their assets, including their home and their car. However, both state and federal law provide the means by which you can liquidate or eliminate most or all of your debt while still retaining much of your property.

Deciphering which of your property can be exempt from liquidation is a complicated process. Filing for Chapter 7 bankruptcy without the assistance of a skilled attorney can cause you to lose precious assets that could have been saved! At DeLoache Law Office, we have more than two decades of dedicated experience assisting individuals through the method of debt relief that protects their assets. Our Jonesboro debt liquidation lawyers can provide the insightful guidance you need to implement your financial fresh start.

Choose Chapter 7 Exemptions to Protect Your Assets

Arkansas law allows individuals who are declaring bankruptcy to choose either the federal or state exemption conditions. This provides you the freedom to select the method that is most advantageous to you and your family. While the basics in both methods are similar, choosing the right option can make a significant difference in determining how much of your properties and assets you will be able to retain.

Whether you opt to file under federal or state exemption guidelines, with a Chapter 7 bankruptcy you have the opportunity to protect many of your assets and personal property, including your:

• House
• Car
• Household furnishings
• Clothing
• Jewelry
• Life insurance policies
• Tools of your trade
• Social security, unemployment, veteran's, and disability benefits
• Retirement accounts
• Court awarded judgments
• Workers' compensation

Federal vs State Exemptions in Arkansas

State

• Homestead - $800 (if unmarried) to $2500 (if married), or 80 acres
• Personal Property - Clothing fully exempt, $200 (unmarried, not head of family) or $500 (married or head of family) aggregate for all other personal property
• Vehicle - $1200
• Wages - 60 days earned, unpaid wages, minimum $25 weekly
• Retirement - IRA contributions up to one year before filing, up to $20,000

Federal

• Homestead - $23,675 of equity in primary residence
• Personal Property - $12,625 aggregate value on household goods, $1,600 aggregate value on jewelry, and $2,375 aggregate value on trade tools
• Wildcard Exemption - $1,250 plus $11,850 of any unused portion of our homestead exemption
• Vehicle - $3,775
• Wages - Earned, unpaid wages are not exempt
• Retirement - Exempt, capped at roughly $1.28 million on IRAs and Roth IRAs

Eliminate Debt Without Dispute

Once your protected assets have been set aside, the rest are liquidated, or sold, to pay off your debts. The funds are distributed among your creditors by the bankruptcy trustee handing your case. After that, whatever debt remains is dismissed, providing you with a financial clean slate. Even if you had no assets to liquidate, once you have successfully declared Chapter 7, most or all your unsecured financial obligations are simply wiped away. Your creditors are legally barred from any further collection efforts.

Chapter 7 bankruptcy provides you with the chance to begin rebuilding your financial future without the burden of overwhelming debt. Most of your unsecured obligations such as credit card and medical bills are reduced or completely discharged, leaving you free to begin anew. With nearly 25 years' experience, our skilled Arkansas bankruptcy attorneys can provide the supportive counsel you need to start your debt-free life.