Chapter 7
CHAPTER 7 BANKRUPTCY
Serving Clients Across Arkansas
Chapter 7 Bankruptcy is commonly referred to as “straight bankruptcy”, but that does not mean you have to lose everything. In Bankruptcy, the law says the Trustee can take and sell property that is not “exempt” to pay your creditors. The Good News is Arkansans are allowed certain exemptions to cover most if not all of your property. This is why it is important to hire an experienced Bankruptcy firm to go over your exemptions.
Secured Property
To keep secured property in a Chapter 7, such as a home mortgage or vehicle note, you must be current on your payments, and enter into a “re-affirmation agreement” with the secured creditor while continuing to make your payments the creditor.
At the end of your case, which is usually around six (6) months in Arkansas, you will receive a “discharge” (forgiveness) of your “dischargeable debts,” and have the fresh start you were looking for.
Chapter 7 Bankruptcy For Businesses
When a person owns a business and can no longer pay its creditors, they may file for Chapter 7, which will involve their business and personal debts and they will be discharged of the dischargeable debts both personally and for the business. Most folks that have a business, personally obligate themselves for the “business debts” either because the business and person are one and the same or the business could not get credit on its own. If you have a Corporation or LLC, it may become necessary to file separate cases for both you and the Corporation or LLC. If you have a corporation, you really need to talk to us about how to handle such a situation.
Chapter 7 Bankruptcy For Individuals
Chapter 7 for individuals and is generally called a “straight bankruptcy” in which the individual is permitted to keep certain “exempt property.” Exemptions vary from state to state, so it’s important to contact an experienced Arkansas bankruptcy lawyer if you live in the state of Arkansas. Trying to do this on your own can lead to disastrous consequences that may leave you in a worse position.
Generally, a bankruptcy stays on the individual’s credit report for up to 10 years. However, we regularly see Credit scores increase once a person is discharged.
If you would like to discuss filing for bankruptcy protection and your options in greater detail, contact the Experienced Arkansas Bankruptcy Lawyers at Niblock & Associates today.
