Little Rock Bankruptcy Attorneys
Find Debt Relief With Our Bankruptcy Lawyers in Little Rock, AR
When faced with insurmountable debt, many people turn to bankruptcy attorneys for help. Filing for bankruptcy can provide relief from debt and give you a fresh start. There are several types of bankruptcy, and they have different effects and procedures. Before filing for bankruptcy, consult with an experienced bankruptcy attorney. They’ll discuss your options and make sure that bankruptcy is the right choice for you.
With experienced Little Rock Bankruptcy attorneys from WH Law, you’ll know which debt relief options are right for you. We’ve represented clients in all kinds of bankruptcy proceedings. We will help you quickly and easily navigate the bankruptcy process. And, throughout the process, we’ll ensure your rights and properties are protected, too.
If you are considering filing for bankruptcy, contact our bankruptcy lawyers in Little Rock today. We’ll schedule a free consultation and help you get started on filing for Chapter 7 or Chapter 13 ASAP.
What You Should Know About Bankruptcy
Bankruptcy is a legal process that helps relieve overwhelming levels of debt. To file for bankruptcy means you’re declaring you can’t repay your debts as they become due. While the main reason is to find debt relief, there are additional reasons to file for bankruptcy.
For example, once you file, the court will order an automatic stay on your creditors. This means they can’t take any collection actions, like wage garnishment or foreclosure.
There are also several different types of bankruptcies. Each one is designed to deal with specific financial situations:
- Chapter 7 – A common form of bankruptcy in which you can sell off certain assets to repay creditors. The court may then release you of some (not all) of your debt obligations.
- Chapter 13 – Another common bankruptcy type where you must have an income to take on a repayment plan. You will then have to pay all or a portion of your debts within a given timeframe.
- Chapter 11 – This type of bankruptcy is mainly for businesses and offers a chance to reorganize debts while continuing to operate.
Those are just a few different kinds of bankruptcies individuals and small business owners may encounter. Going through them allows you to relieve many types of debt, such as bills or credit card debt. However, debts like student loans and certain taxes can’t be removed through bankruptcy.
Make sure to consult with a professional in bankruptcy law before you file. WH Law’s team of bankruptcy lawyers in Little Rock will help you determine the best course for you.
The Differences Between Chapter 7 & Chapter 13 Bankruptcy
Let’s talk more in-depth about the different types of bankruptcy and how they work.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as “liquidation bankruptcy.” To file for Chapter 7 bankruptcy, you must first complete a means test to determine if you qualify. The means test is designed to ensure that only people with truly severe financial hardships can declare bankruptcy.
You then file a petition with the court, which appoints a trustee to oversee the process. This trustee is a person who oversees your bankruptcy case and ensures you follow the court’s ruling.
The trustee will collect the paperwork you should have prepared before filing. This includes a list of all your assets. You’ll have to then attend a meeting of creditors. Your trustee and creditors may ask you questions about your debt and finances there.
Once that’s completed, the trustee will determine which assets can be sold to pay off your debt. Most of your personal property, like your home, car, clothing, and other belongings, is usually exempt.
The trustee will then sell your non-exempt assets and use the proceeds to pay your creditors. Once your creditors have been paid, the court will discharge your remaining debts.
In other words, once your debts are partially paid off by the trustee, you’re clear of all debts. That, in a nutshell, is the Chapter 7 Bankruptcy process.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also known as a “reorganization bankruptcy.” In a Chapter 13 bankruptcy, you propose a repayment plan to the court. The court will then approve or modify the plan, and your creditors will be required to accept the terms of the plan.
Under the repayment plan, you will make payments to the trustee over a period of three to five years. After you have made all of the required payments, the court will discharge your remaining debts.
For many people, Chapter 13 is a worthwhile alternative to Chapter 7. You’re less likely to lose most of your assets. However, it also involves a much longer process. Regardless, Chapter 13 and Chapter 7 bankruptcy offer a chance to move on from heavy debts and avoid things like repossession.
What Can a Bankruptcy Lawyer Do For Me?
An experienced attorney can help you understand the different types of bankruptcy and choose the right option. At WH Law, we’ll help you expertly navigate the bankruptcy process. And throughout the proceedings, our Little Rock bankruptcy attorneys will guide you through each step.
With one of our attorneys at your side, you’ll get valuable guidance in:
- Understanding bankruptcy laws
- Determining if you are eligible to file for bankruptcy
- Choosing the type of bankruptcy for your situation
- Developing a repayment plan (for Chapter 13)
- Negotiating your debts
- Filing your petition at bankruptcy court
- Attending your hearing at bankruptcy court
- Representing you at your meeting of creditors
- Objecting to any claims made against you
- Working with you through your debt discharge
We’ll be there with you every step of the way. Our lawyers are tough, prepared, and excited to help our clients find the relief they deserve. So, if you’re in debt and need a path forward, talk to WH Law. We’re ready to help.
Are All Debts Covered When Bankruptcy Is Filed?
There are certain debts that you can’t discharge, like student loans, child support, alimony, or most tax debts. You are still responsible for paying these debts even if you file for bankruptcy.
Certain assets may also be protected during bankruptcy through exemptions. Exemptions can vary depending on the type of bankruptcy you file.
However, some common exemptions include your home, car, retirement account, and personal belongings. Speak to an experienced bankruptcy attorney for more specific details on which debts your filing can remove.
What Are the Drawbacks of Filing Bankruptcy?
Filing for bankruptcy can have both positive and negative effects.
On the positive side, bankruptcy can give you a fresh start. It wipes away many of your debts and gives you a chance to rebuild your credit.
However, bankruptcy can stay on your credit report for up to 10 years. It can also lower your credit score, making it difficult for you to apply for new lines of credit.
While there are drawbacks, they pale in comparison to the financial relief you get. Hire an experienced bankruptcy lawyer to help you start your journey of eliminating financial debt.
Recover Your Financial Freedom With Our Experts in Bankruptcy Law
If you are considering filing for bankruptcy, contact our bankruptcy lawyers in Little Rock, AR, today. We’ll schedule a free consultation with you to discuss the details of your case. Our team will ensure you choose the right form of bankruptcy based on your situation. Your attorney will also provide a foreclosure defense to ensure you keep your property. We’ll even push through debt negotiation to ensure you aren’t jerked around by creditors.
Every step of the way, we will guide you through the process and ensure you come out debt-free. Contact us today at (501) 263-2398 to get the debt relief you deserve.
