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. With
thousands 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.
Chapter 7 Bankruptcy
There are two main bankruptcy chapters for consumer debtors:
Chapter 7 and
Chapter 13. 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 a Chapter 7, it is only available to debtors with little to no disposable income.
Chapter 13 Bankruptcy
For those whose incomes are too high to qualify for a Chapter 7, they can
seek relief by filing a Chapter 13, which has its own benefits:
- A Chapter 13 is essentially a debt repayment plan that lasts for 3 to 5 years.
- The 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 negotiate with the creditors, there is no negotiation involved
in a Chapter 13, nor are there any interest charges.
- A Chapter 13 is a critical tool for homeowners to save their home from