Bankruptcy Attorneys in Jonesboro, AR Working Hard to Protect Your Rights
If you have found yourself in a position where bankruptcy is an option, we respect that this hasn’t been an easy decision for you, and neither have the experiences that led up to this decision. It typically means you are in a tough spot and need a strong ally in your corner.
OMG Law Firm has a team of attorneys that have spent years working hard for people just like you who are experiencing bankruptcy. We are here to answer your questions, come up with a plan that best fits your needs, and walk you through the process. Contact our Jonesboro, AR, offices today at (870) 330-7324 to speak with one of our experienced attorneys about what your options are and how to get started.
What Types of Bankruptcy Are Available in Arkansas?
Two general types of bankruptcy are recognized in Arkansas. Chapter 7 is sometimes referred to as liquidation, and Chapter 13 can be referred to as reorganization. Each situation is unique so deciding which is the best route for you from the beginning is also something a trusted attorney with experience in bankruptcies can help you to evaluate.
Chapter 7 Bankruptcy is one of the most common forms of bankruptcy. It is appealing to most because it can allow you to wipe the slate clean in regards to debts like credit card debts, personal loans, medical bills, and more. This process typically lasts about six months. It begins with you agreeing to a trustee, such as your attorney, that is in charge of taking some of your assets and selling them to help pay back the debt. It can offer peace of mind to the creditors in that you are taking the necessary steps to get them paid back. During this process, you can keep necessary assets so that you can continue to bring in income and maintain things like your home. It is important to note that things like child support, income taxes, spousal support, wrongful death suits, and student loan debt are some of the things that are not included in a liquidation or Chapter 7 filing, and you would still be responsible for those payments.
Chapter 13 Bankruptcy is another option and one that is appealing to those that want to remain an owner of all of their belongings. It can be a great tool to allow you to catch up on past-due auto or house payments to avoid repossession or foreclosure. Creditors are set up to receive the fair market value of the debt that is owed to them over a three to five-year plan. You must have a proven consistent income to qualify for this route.
What Are the Steps To Filing for Bankruptcy?
All individuals who intend to file bankruptcy, by law, are required to take a credit counseling course within six months before filing. It is also required by law that you finish a financial management course to conclude the process.
The next step is the Arkansas Means Test, which allows you to determine if you qualify for Chapter 7 or Chapter 13 based on your household income. An exception to this is if your income is less than the state median, in which case you can forego the test.
Preparing documents is the next phase of the process. This can include documents such as a monthly living expenses report, your current income sources, a secured and unsecured debt list, documentation of any large purchases made within the past two years, a list of assets and property, tax returns for the past two years, titles to cars, deeds to any real estate purchases, and loan documents. This isn’t an exhaustive list but covers most of the necessary items. Your attorney can sit down with you and go over what items, if any, are exempt from liquidation or seizure.
Filing for bankruptcy is the next step, which will introduce an automatic stay, prohibiting creditors from contacting you in an attempt to collect or from them attempting to take any of your assets. This can prevent foreclosure or repossession in most situations.
The bankruptcy discharge is the final step in that it provides you relief from your debts. It is important to think of the final step for you, however, as beginning the process to rebuild your credit moving forward.
How Long Does Bankruptcy Affect My Credit?
Generally speaking, you can expect that a bankruptcy will remain on your credit report for seven to ten years. Lenders are aware that you aren’t able to file again for bankruptcy for another two to eight years, so they may be willing to lend to you again, which can help to restore your credit as well. Going through your credit report thoroughly after bankruptcy can allow you to see if there are any discrepancies and address them immediately, and create a starting point for you to rebuild your credit.
Why OMG Law Firm?
Bankruptcy isn’t easy, but it doesn’t have to be the end of the world. In fact, it can be the first step to a new future for you. Handling it quickly, accurately, and effectively is what experienced bankruptcy attorneys can help you do. We have many years of helping people navigate the bankruptcy process, and although no two situations are the same, we are confident, through our years of experience, that we can assist you effectively as well.
Contact OMG Law Firm at our Jonesboro, AR offices today at (870) 330-7324 to answer your specific questions, learn what the best options for you are, and put together a plan to move forward. We look forward to your call.