Chapter 7 is considered to be the most serious of bankruptcy options, essentially setting up assets to be liquidated with any proceeds from the liquidation going to your creditors. As such, Chapter 7 has a strict set of criteria and guidelines that must be met before proceeding.
Individuals are means-tested based on income and other factors to determine whether they qualify to file for Chapter 7 bankruptcy. To substantiate this, when the bankruptcy paperwork is prepared and filed, it includes a series of financial documents demonstrating that the debtor meets the requirements for filing Chapter 7 and that he/she doesn’t qualify for another bankruptcy option. There are several steps you’ll need to complete as you pursue Chapter 7 bankruptcy, including creditor meetings, budget counseling, and more. In most instances, the entire process takes about six months, although several factors may impact this timeline.
Filing for Chapter 7 bankruptcy typically allows you to discharge several types of unsecured debts, such as credit card debt, medical bills, and unsecured personal loans. However, other forms of unsecured debts, including child support and alimony payments, student loans, and some types of tax debt, are rarely discharged. For a more complete picture of what types of debt relief are available to you, contact Natural State Law, PLLC today.
If you’ve lived in Arkansas for at least 730 days, you will qualify for Arkansas exemptions, which allow you to choose between Arkansas Constitutional exemptions and federal bankruptcy exemptions. In most cases, federal exemptions allow more property to be protected, but we can evaluate your specific situation to determine what is best for you. If you are seeking debt relief, it’s a good idea to seek the counsel of an experienced bankruptcy attorney who can help you understand your options. At Natural State Law, PLLC, we are committed to listening carefully to the unique needs and goals of each client so that we can determine the most strategic path forward.