Chapter 7 Lawyers in Cabot, AR

Name: Get Debt Relief from Chapter 7 Lawyers in Cabot, AR | WH Law
Brand: WH Law

Get real debt relief with the help of an experienced bankruptcy attorney

Are you buried in bills? Tired of dodging collection calls that won’t stop? Feel like there’s just no way out? None of this defines you, and it doesn’t have to continue.

If you’re facing mountains of debt, you’re not lazy (and you’re not irresponsible either). You’re just stuck in a system that wasn’t built to help people like you get ahead. And we get that.

At WH Law, our Cabot Chapter 7 attorneys help good people break free from bad debt. Whether it’s medical bills, credit card payments, payday loans, or mounting interest stealing your peace, we’re here to help you take it back.

We don’t do judgment. We do solutions. And it all starts with a free consultation.

Reach out to our team of lawyers, and we’ll reply lightning quick. That’s just how we work.

What is Chapter 7?

Chapter 7 is a type of bankruptcy that gives you a clean slate by wiping out certain debts entirely. How? An appointed trustee will sell your “nonexempt property” and distribute the proceeds to your creditors.

It’s often called “liquidation bankruptcy,” but don’t let that term freak you out. Most people who file get to keep everything they care about, like their home, car, and personal belongings.

Here’s how it works: You file a petition with the court, then a trustee reviews your finances. If approved, your eligible debts get discharged. The whole process usually takes a few months (slightly faster if you’re really on top of it).

Let’s be clear. This isn’t some financial loophole. It’s a lifeline, and our bankruptcy lawyers are here to help you grab it.

What Debts Can You Wipe Out With a Chapter 7 Bankruptcy?

Imagine getting rid of those stressful debts that keep you up at night. That’s what Chapter 7 bankruptcy is all about. It’s a quick, straight-shot path to debt relief.

In fact, filing bankruptcy through Chapter 7 can eliminate a big chunk of your debt, including:

Credit card balances
Medical debt and hospital bills
Payday loans and personal loans
Past-due utility bills
Most unsecured debts (the kind with no collateral)
Some older tax debt (depending on your situation and if you filed on time)

Once your case is discharged, what happens to those debts? Gone. Like they never existed.

Of course, not everything disappears (sorry, student loans, taxes, child support, and alimony stick around). However, our experienced attorneys will walk you through exactly what Chapter 7 can and can’t do.

Bottom line? You get breathing room and peace of mind that’s damn near priceless.

Do You Qualify for Chapter 7?

Qualifying for Chapter 7 mostly comes down to your income and monthly living expenses. There’s something called the means test that looks at what you make, what you owe, and what’s left over each month. If there’s not much financial wiggle room? You’re probably in.

Other elements that factor into your eligibility:

Nature of your debts: Chapter 7 is mainly for folks with consumer debts. However, if over half your debt is business-related, you might bypass the means test altogether and automatically qualify.
Previous bankruptcy filings: Timing matters. If you’ve filed for Chapter 7 in the past eight years, you might need to wait before filing again.
Credit counseling requirement: Before filing, bankruptcy law requires you to complete a credit counseling course from an approved agency within 180 days. It’s a short session, often available online or by phone, and we can guide you through it.

But don’t worry. Even if you don’t qualify for Chapter 7, it’s not the end of the road. There are other options like Chapter 13. This type of bankruptcy lets you keep your prized assets and pay off your debt over time through a court-approved plan (a monthly payment that fits your budget).

We’ll walk you through both, honestly and clearly, so you know what’s best for your situation.

Check out our page on Bankruptcy to learn more.

How the Chapter 7 Bankruptcy Legal Process Works

Filing for bankruptcy might sound complicated. Tons of paperwork, court hearings, mandatory courses…yikes. But take a deep breath. We make the process about as painless as it can get. Here’s the gist of how Chapter 7 works with WH Law:

1. Free Initial Consultation

We start with a no-pressure, free consultation. You’ll meet with one of our attorneys to discuss your financial situation, answer your questions, and determine if Chapter 7 is the right path for you.

2. Take a Credit Counseling Course

Before filing, you’re required to complete a credit counseling course from an approved agency. This course, which typically lasts 60 to 90 minutes, can be completed online, over the phone, or in person.

Upon completion, you’ll receive a certificate that’s valid for 180 days. It must be filed along with your bankruptcy petition.

3. Prepare & File the Petition

We’ll assist you in gathering necessary documents, including income statements, tax returns, and a list of assets and debts. Once everything is in order, we’ll file your bankruptcy petition with the court. This official filing marks the beginning of your case.

4. Automatic Stay Kicks In

An automatic stay is enacted immediately after filing. This legal provision halts most collection actions against you (e.g., collection calls, wage garnishments, and lawsuits). It’s like hitting the pause button on your financial stress.

5. Attend a Meeting of Creditors (341 Meeting)

About 20 to 45 days after filing, you’ll attend a “Meeting of Creditors”. During this brief session, a trustee will ask you questions about your financial affairs. Creditors may attend, but it’s pretty uncommon.

P.S.: This isn’t an official court hearing, and we’ll prepare you thoroughly so you feel confident.

6. Complete a Debtor Education Course

After the 341 meeting, you’ll also have to complete a debtor education course that focuses on financial management. It can be completed online or over the phone. You’ll need to file a certificate of completion with the court (again, we can help you out here).

7. Your Debts Are Discharged

If all goes smoothly, the court will issue a discharge order approximately 60 to 90 days after your 341 meeting. This order erases your qualifying debts and gives you a fresh financial start. Most Chapter 7 cases conclude within four to six months from the initial filing.

Busting Bankruptcy Myths

We know: Bankruptcy is a scary word — but for you, it doesn’t have to be.

And another thing? Filing for Chapter 7 is actually more common than you might think. Plenty of honest, hard-working Arkansans have done it to reclaim their lives. Since there’s a lot of nonsense out there about bankruptcy, let’s clear some things up:

Myth: “I’ll lose everything I own.”
Truth: Nope. Most folks keep their home, car, and all the stuff they actually need. Arkansas has exemptions that protect your essentials. We’ll make sure you know exactly what’s safe.

Myth: “My credit will be ruined forever.”

Truth: Wrong again. While bankruptcy dips your credit at first, it also gives you a clean slate to rebuild. Most people see their score improve within a year or two (faster than if they stayed stuck in debt).

Myth: “Only irresponsible people file for bankruptcy.”

Truth: Total myth. Our clients are hardworking people who’ve simply been through hard times, from job loss, medical emergencies, divorce, and inflation. Bankruptcy exists for a reason, and it doesn’t make you a failure.

Myth: “Everyone will know I filed.”

Truth: Not necessarily. It’s a public record, but unless someone’s snooping or digging into your court files, they’ll never know.