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DeLoache Law Office 25+ Years of Excellence Helping Arkansas Families and Businesses Alike

Jonesboro Chapter 7 Bankruptcy Attorney

We Can Help You Understand the Options - Call (888) 233-7016

Are you in a position of financial distress but unsure if bankruptcy is right for you? If so, our Jonesboro County Chapter 7 lawyer at DeLoache Law Office may be able to assist you. We understand how daunting bankruptcy can seem. However, by dispelling any misconceptions, we can help you make beneficial decisions to help restore and recover your debt.

Reasons to Trust Attorney DeLoache:

  • 1,000s of Bankruptcy Cases Under Our Belts
  • Voted Best of Region 8 Bankruptcy
  • Proven Solutions to Become Debt-Free
  • Individualized & Attentive Legal Counsel

If you are considering filing for Chapter 7 bankruptcy, we can guide you through the process. Contact our firm to schedule a consultation today: (888) 233-7016

What is Chapter 7 Bankruptcy?

Also known as liquidation bankruptcy, Chapter 7 allows qualifying debtors to surrender certain assets to discharge unsecured debts. This type of bankruptcy is a relatively easy way to complete a bankruptcy discharge.

Certain property is exempt in a Chapter 7 bankruptcy case. This means that the property cannot be sold or otherwise turned over to creditors. Federal law lists several bankruptcy exemptions, and Arkansas also has its own exemptions for qualifying residents.

Exempt property in the state of Arkansas includes:

  • Homestead: Between $800 or $2500, or 80 acres
  • Vehicle: $1200
  • Personal Property: All clothing, $200 or $500 for all other property
  • Wages: 60 days of unpaid earned wages

How Do I File for Chapter 7?

To be eligible for Chapter 7, the debtor must prove they are unable to pay their debts with their income. This is done through the Chapter 7 means test. The means test deducts certain expenses from a debtor's average monthly income to determine your disposable income for repaying debts.

The Chapter 7 Means Test examines the following in determining your eligibility:

  1. Is the debtor's income more than the median for his or her household in Arkansas? 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 Chapter 7.
  2. 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.

Those who do not qualify for Chapter 7 may be able to find debt relief through Chapter 13 bankruptcy.

Stop Creditor Harassment with Chapter 7!

Once you demonstrate bankruptcy eligibility, you can file a bankruptcy petition. Filing for Chapter 7 will invoke an "Order for Relief" for creditors. This "automatic stay" limits creditors from seeking further collection or forced repayment. It stops 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 creditor. Once the process concludes, most debts (excluding those left out by the court's discretion) will be discharged.

20+ Years of Experience in Chapter 7 Filings

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. There are various bankruptcy options, each designed for individuals in specific financial circumstances.

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.

Determine if Chapter 7 bankruptcy is the right option for you. Contact our Jonesboro law office at (888) 233-7016 today to get started on your Chapter 7 case.