Chapter 7 Bankruptcy Services in Little Rock, NLR, Bryant, Sherwood, Maumelle, and other surrounding areas

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is an established legal way to achieve debt forgiveness. Chapter 7 bankruptcy can eliminate unsecured debt and allow the client to keep and continue to pay for secured debt, such as a home, car, furniture, or even a boat that has been financed.
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Why Chapter 7 Bankruptcy?

When given the choice, many debtors prefer filing Chapter 7 bankruptcy because it discharges most debt. However, a debtor must qualify by meeting an income limitation. A qualified debtor may have debt discharged in exchange for giving up valuable nonexempt property for the trustee to sell to pay creditors. Even though the debtor will lose some property, there are several advantages of filing Chapter 7 bankruptcy over Chapter 13 bankruptcy.

When Should I Consider Chapter 7 Bankruptcy?

If you’ve tried negotiating with your creditors, working with a credit counselor or consolidating your debt, but are still struggling to manage your debt, Chapter 7 bankruptcy might be your last resort.

Chapter 7 bankruptcy can help by acting like a “pause” button for some of your debts. Once you file your petition, some of your creditors could be temporarily stopped from most collection actions against you or your property.

But filing Chapter 7 can ultimately mean losing some assets. The law varies from state to state, and each state can classify property as exempt (can’t be taken) or nonexempt (can be taken). So depending on where you live, your home, stocks, other investments as well as other nonexempt assets you have could be at stake.

Do I Need A Chapter 7 Bankruptcy Attorney?

When you work with a Chapter 7 bankruptcy attorney, you have a professional helping you use the bankruptcy process to your full advantage. There may be things that you can do now that can make your bankruptcy proceeding better for your interests. Knowing what bankruptcy can do for you is critical to getting a good result from the proceedings. When you have a bankruptcy attorney fighting for you, they guide you through the process and ensure that you take all of the steps to get the best possible result in your bankruptcy.

If you try to manage your bankruptcy on your own, you may miss critical steps that can hurt your exemptions. You may also miss categories of debts that you can include in your debt elimination.
  • What Can Chapter 7 Bankruptcy Do For You?

    Chapter 7 bankruptcy is often used as a last resort to help with monthly expenses. This type of bankruptcy can help stop foreclosures and help wipe out debts, including many types of unsecured debts. For anyone who is far behind on their bills and can no longer afford monthly payments and/or living expenses, filing for liquidation is one way to clear away debts. 

  • What Type Of Debts Can Chapter 7 Bankruptcy Help You With?

    - Credit Card Debts 

    - Unsecured Loans

    - Medical Bills

    - Judgments / Law Suits

  • What Can You Keep With Chapter 7 Bankruptcy?

    When filing for Chapter 7 or Chapter 13 Bankruptcy, everyone is required to list all of their assets. The bankruptcy laws protect your assets from creditors. There is a limit on the amount protected, but most people fall well below that limit. This means that you can wipe away your debt and still keep your property. You might have property that is collateral like a mortage on your house or car, but in most cases, can keep and continue to pay on those items. 


    Here is a list of some of the property that is protected when filing Chapter 7 Bankruptcy:

    - Equity in your home

    - Equity in a vehicle

    - A burial plot

    - Personal property (Clothing, jewelry, books and pets)

    - Health Aids

    - Crops and animals

    - Household items including appliances, furniture, etc. 

    - Tools, books and implements required for your employment

    - Child support payments

    - Most life insurance policies

    - Retirement accounts

    - Wrongful death awards and personal injury awards

    - Public Assistance, Social Security, Disability Benefits, Veterans' Benefits and Unemployment Compensation Benefits

  • What You Have To Do Before You File?

    After meeting with one of our lawyers, you will list all of your assets, debts, current income and other information that is necessary to complete the paperwork. While filing the paperwork you will determine whether there are any debts you wish to reaffirm (meaning you wish to continue to pay that debt rather than having it wiped away). You must complete an instruction class refered to as "Credit Counseling". You are able to take this class online or over the phone and it only takes a few moments to complete this class. 

    Once everything is signed and you've completed the Credit Counseling class, we will begin the filing process for your case. 

  • What Happens After You File?

    Everything is electronically filed in bankruptcy cases. The computer will automatically assign a trustee and a bankruptcy judge to your case after it is filed. After filing, you must attend one meeting with your trustee that you've been assigned. This meeting is not only an opportunity for your trustee to ask you questions about your case, but is is also an opportunity for creditiors to question you. In most cases creditors don't attend the meeting or ask questions unless their is some kind of complicated debt or issue pending in the case. 

    After the meeting is held Creditors and the trustee have a time period during which they can file objections to your discharge, but after that period has past the judge will enter you discharge order. This means your debts are wiped away. 

    There are other requirements associated with filing bankruptcy, this is a simplified version of how a Chapter 7 bankruptcy case proceeds. 

Contact Us Today To See If You Qualify To File For Chapter 7 Bankruptcy

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