Arkansas Chapter 13 Bankruptcy Attorneys
If you are having trouble with money and debt, and are feeling very stressed, wh Law can help you. We will help you to get through this tough time.
The U.S. Bankruptcy Code created Chapter 13 to help Americans who are struggling with their finances. Our attorneys have helped many people achieve this goal and get their lives back on track.
At our company, we are good at helping clients get back on their feet. We work on each case carefully and spend time getting to know the clients and how to help them.
We make solutions that are just for you and that will help you now and in the future. With us, we will always put what is best for you first.
What Is Chapter 13 Bankruptcy in Arkansas?
A Chapter 13 bankruptcy is a common way to bankruptcy. This lets you have a chance to get rid of some debt and reorganize other debt. What this means is that you can pay off debt for very little money, and also keep your house, car, and other things you own.
With Chapter 13, you make an agreement with a judge to pay part of your debt over 3 to 5 years. Once the bankruptcy is filed, creditors and debt collectors will not be allowed to bother you. Also, you will not have to worry about losing your properties or assets.
Chapter 13 will help you feel better and it will also give you and your family a chance to have a new beginning.
The Many Advantages Of Chapter 13 in Arkansas
In a Chapter 13 repayment plan, you can usually reduce or get rid of your unsecured debts. This means you will not have to worry about creditor actions and you can gradually pay only the portion of your debts that you can afford. You will make a fixed monthly payment for at least 36 months but no more than 60 months, based on how much money you have available to pay.
At the end of the plan, you will not have to pay any more money for the debt. You also get to keep your assets except for the ones you want to give up.
Most people in Arkansas who file for bankruptcy do it under Chapter 13. Chapter 13 offers both short-term and long-term relief and is not as severe as a Chapter 7 bankruptcy.
- Stop foreclosure —Your mortgage arrears, or money you owe for past due car payments, can be added to your repayment plan.
- Stop repossession – You can keep your car as long as you are current on your payments.
- Give you time to catch up —If you have fallen behind in making mortgage payments, Chapter 13 will give you the opportunity to catch up over a period of three-to-five years.
- Prevent wage garnishment — Your take-home pay will not be seized by creditors. It will also stop wage garnishment if it has already started.
- End the creditor harassment — No more annoying phone calls or threatening letters. The automatic stay prevents creditors from contacting you or taking any legal action against you to attempt to collect a debt.
- Free yourself from constant stress.
Chapter 13 and Unsecured Debt
When filing bankruptcy and calculating monthly payments you do not always have to pay unsecured creditors. You typically have to pay your secured debts. What does this mean for your regular payments? It means that you do not have to repay your unsecured debts unless your disposable income is too high according to bankruptcy laws.
How the Chapter 13 Bankruptcy Process Works
In a Chapter 13 bankruptcy, you create a payment plan that lasts for three to five years. You will use this plan to pay off most of your debt. The advantage of Chapter 13 is that you get to keep your property, like your home or car even if you are currently behind on them.
But you must have enough money coming in every month to make regularly scheduled payments. These payments will eventually bring you current by the end of the scheduled time. Chapter 13 is often a preferable plan in these situations:
- You might lose your home because you cannot pay for it. This is called foreclosure.
- You are not able to pay your credit card debt and other debts right now, but you will be able to if you have more time.
- You have a property that is not exempt and you don’t want to lose it. You also have enough income to pay creditors over time.
Chapter 13 may help you if you can pay some of your debts, but have trouble with high-interest rates or making payments on time.
You will make payments to the trustee. The trustee will then pay the creditor in your Chapter 13 plan. (Not all creditors get paid)
During the years when you are paying back the Chapter 13 debt, you cannot get more debt without permission from the court. Some of your debts may be canceled, and others may be reduced. The unsecured debt that is left after the repayment term ends is discharged.
Chapter 13 Discharge
After you have paid your Chapter 13 Plan in full, then you get your discharge. The bankruptcy filing starts the process and the bankruptcy relief that everyone is looking for is the discharge. Under bankruptcy law, after you get a discharge if any creditors try and collect on the debt, then you can sue them in bankruptcy court. Your full payment to the bankruptcy trustee means that the creditors have to leave you alone.
Who Should File for Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy might help you if you have a job and other money coming in, and if you own things that you don’t want to lose. This type of bankruptcy can relieve the stress and anxiety that your financial situation is causing. You should talk to an Arkansas bankruptcy lawyer to see if this is the right choice for you.
How an Arkansas Chapter 13 Attorney Can Help
At wh law, we are dedicated to providing our prospective clients with the best possible advice and solutions. To ensure that you receive personalized insight into your debt relief options, we offer free strategy sessions to discuss whether Chapter 13 bankruptcy is right for you!
If you want to continue, we will start by studying your case. Our experienced Chapter 13 bankruptcy lawyers will look at your finances and figure out a plan that works for you. We will also help you make a budget. Then, we will work hard to finish the bankruptcy process quickly.
We are passionate about helping our clients and will work hard on your case. Our goal is to help you be financially stable again and to stay that way.