Chapter 7 Bankruptcy Attorney in El Dorado, Arkansas

The financial curveballs of life can hit you unexpectedly and sideline you from settling debts, paying bills, or meeting your other financial obligations. When going through financial hardship, filing for Chapter 7 bankruptcy is among the promising options to achieve debt relief and get the financial clean slate you deserve. If you're considering filing for Chapter 7 bankruptcy, you need to speak with a knowledgeable Arkansas bankruptcy attorney for detailed guidance.

At Rushing Law Firm, PLLC, we are committed to offering reliable advocacy and experienced legal guidance to clients in bankruptcy-related matters. Let’s discuss your bankruptcy options and determine whether Chapter 7 is right for you. Also, we will guide you through every legal process involved in your Chapter 7 bankruptcy filings from start to finish and help you navigate crucial decisions.

Rushing Law Firm, PLLC is proud to serve clients across El Dorado, Arkansas, and surrounding areas of Magnolia, Camden, Columbia County, Ashley County, and Ouachita County.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also referred to as "liquidation" bankruptcy, is a debt relief option that allows individuals, families, and business owners facing financial setbacks to wipe out most of their general unsecured debts and get a financial "clean slate."

In a Chapter 7 case, the Arkansas court will appoint a trustee – an independent contractor – to oversee your bankruptcy case. The trustee will collect and sell your non-exempt assets. The net proceeds from the sale will be used to pay some or all of your creditors.

Non-exempt assets include second vehicles, second homes, bonds, stocks, family heirlooms, vacation homes, bank accounts, cash, and other investments. You will still retain your exempt assets, including your primary home, household appliances, motor vehicle, furniture pieces, and clothing.

What Chapter 7 Does

Filing for Chapter 7 bankruptcy in Arkansas achieves the following:

• Activates an "automatic stay" on your existing debts, stopping all kinds of creditor harassment, wage garnishment, and all other collection efforts

• Eliminates your general unsecured debts, such as credit card debts, medical bills, and unsecured personal loans

• Relieves you of some financial obligations, excluding child support and alimony payments

• Activates an "automatic stay" that stops the creditor from repossessing, foreclosing, or evicting you from your property

• Helps you rebuild your credit score steadily over time

What Chapter 7 Doesn't Do

In spite of what Chapter 7 can do for you, there are some things it doesn’t do. These include:

• It won't wipe out your student loan debts, except on very rare occasions.

• It won't leave you destitute. You will retain your major assets, including your motor vehicle, primary home, clothing, and furniture pieces.

• It won't relieve your duties to pay child support and alimony. You may need to seek a family court order to suspend domestic support obligations.

• It won't eliminate some debts, such as divorce settlement debts, fines and penalties, fraudulent debts, criminal restitution, and state, local, and federal taxes.

An experienced Arkansas bankruptcy attorney can enlighten you about how to qualify for Chapter 7 bankruptcy and walk you through the entire process.

Qualifying for Chapter 7

In order to qualify for Chapter 7 bankruptcy in Arkansas, you must pass the bankruptcy "means test" and attend credit counseling courses.

A bankruptcy "means test" helps determine whether a person is eligible for Chapter 7 bankruptcy. The means test will evaluate your financial records, deduct some expenses and payments, and determine your disposable income. You will automatically pass the means test and be eligible for Chapter 7 if your income is less than the median income for your household size in Arkansas.

However, if your family income is more than Arkansas's median income for your household size, you must complete the bankruptcy means test. You may be eligible for Chapter 7 bankruptcy if your disposable income is really low to pay back your outstanding debts. Conversely, if you have a reasonable disposable income, you may pay back your outstanding debts through a Chapter 13 repayment plan.

When Is Chapter 7 a
Good Debt Relief Option?

Chapter 7 may be a good debt relief option for you if:

• You own a few assets.

• You have personal loans, medical bills, and credit card balances that can be wiped out or discharged.

• Your income is less than the state's median for your household size.

A skilled attorney can review your financial condition and determine whether Chapter 7 bankruptcy is right for you.

Work With an Experienced
Bankruptcy Attorney

Filing for Chapter 7 bankruptcy in Arkansas often involves a lot of complexities. Determining your eligibility, completing your forms, filing your petition, passing the bankruptcy "means test," and attending credit counseling courses can make the entire process even more complex. Therefore, getting proper guidance from an experienced bankruptcy attorney is crucial to navigating key decisions and avoiding costly mistakes.

At Rushing Law Firm, PLLC, we have the diligence and experience to assist and guide consumers through the complexities of Chapter 7 bankruptcy. As your legal counsel, we can review your financial situation and determine whether Chapter 7 is the ideal bankruptcy option for you. With our in-depth understanding of Arkansas's bankruptcy laws, we can guide you throughout every stage of your bankruptcy proceedings, represent you in court, and help you achieve the financial fresh start you deserve.