Arkansas Bankruptcy Laws
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Facing financial challenges is a part of life. But if you're one of the millions struggling financially due to a job loss, illness, or another event in Arkansas, bankruptcy can help. Here, you'll find an explanation of Chapters 7 and 13, checklists to help you understand the process and stay organized, and Arkansas's property exemption laws and filing information.
But Arkansas's laws come into play in a significant way. They determine the property you can keep in your bankruptcy case. You'll also need to know other filing information, which we explain after reviewing some basics.
Chapter 13 bankruptcy filers must pay creditors some or all of what they owe using a three- to five-year repayment plan. But the payment plan allows Chapter 13 to offer benefits not available in Chapter 7. For instance, not only do you keep all of your property, but you can save your home from foreclosure or your car from repossession. If you need time to repay a debt you can't discharge in bankruptcy, you can use this chapter to force a creditor into a payment plan.
But you can't discharge all debts. Nondischargeable debts, like domestic support arrearages and recent tax debt, won't go away in bankruptcy, and student loans aren't easy to wipe out (you'd have to win a separate lawsuit). You'll want to be sure that bankruptcy will discharge (get rid of) enough bills to make it worthwhile.
We all know that seeing the forest helps us recognize the trees, so it's probably a good time to consider the significant steps you'll take during your bankruptcy journey. Think of this checklist as a roadmap, but you can also use it to track your progress. The good news? You've already made headway on the first two items!
Exemptions change periodically, and these figures could change before we update them again in June 2023. You can meet with a bankruptcy attorney for current amounts and learn how they apply to your situation.
You won't lose everything in bankruptcy. You'll use your state bankruptcy exemption laws to protect your property. We list the significant exemptions below, but understanding the following will help you maximize what you'll keep in your case.
You'll meet the initial requirement if you've never filed for bankruptcy before. Otherwise, check whether enough time has passed to allow you to file again. The waiting period varies depending on the chapter previously filed and the chapter you plan to file. Learn more about multiple bankruptcy filings.
You'll qualify for Chapter 7 bankruptcy if your family's gross income is lower than the median income in your state for the same size family. Add all gross income earned during the last six months and multiply it by two. Compare the figure to the income charts on the U.S. Trustee's website (select "Means Testing Information").
You can expect creditors to call until you file. It's usually best to ignore them because telling creditors about your bankruptcy can encourage them to take more drastic collection steps before losing the right to collect altogether. However, if you hire counsel and refer creditors to your lawyer, they'll have to stop calling you.
Are you curious whether your case is simple enough to file yourself? Our quiz will help you identify potential complications while educating you about bankruptcy. You'll find it here: Do I Need a Lawyer to File for Bankruptcy?
Your case starts when you file your paperwork with the local bankruptcy court and either pay the filing fee or request a fee waiver. Also, each court creates rules you must follow, and some might have local forms, too. You'll find the court's local rules and instructions on the Arkansas bankruptcy court website by clicking "Filing Information" on the navbar. To determine where to file, go to "Court Information" and click on "Arkansas Map-County Codes-Case Numbering."
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your ass