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Chapter 7 Bankruptcy Arkansas

Are There Limits To The Rule 2004 Exam

Chapter 7 Consumer Bankruptcy Basics

The scope of investigation allowed under Rule 2004 is wide but not unlimited. As discussed above, the party seeking the Rule 2004 exam must demonstrate that there is a legitimate reason for the examination. Rule 2004 exams canât be used to harass or abuse debtors or examinees.

Rule 2004 examinations are also limited by the âpending proceedingâ rule, which applies when there is a pending adversary proceeding . Adversary proceedings are governed by the FRCP, so the parties to the adversary proceeding are limited to the FRCP discovery rules.

The pending proceeding rule also applies to pending non-bankruptcy litigation, such as a lawsuit in state court. Parties who are involved in a pending non-bankruptcy proceeding must comply with the rules that would normally govern that proceeding. They canât use a Bankruptcy Rule 2004 exam to get around those rules.

Determine Whether You Need Help To File Bankruptcy In Arkansas

Did you know that some people file for bankruptcy without an attorney? Many people prefer using a bankruptcy lawyer given the complexity of filing bankruptcy, but it is possible to often file Chapter 7 bankruptcy without an attorney. Filing Chapter 13 without an attorney may be much more challenging.

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There are many possible benefits of declaringChapter 7 bankruptcy. Also known as liquidation bankruptcy, Chapter 7 allows individuals who are overwhelmed by significant debt to obtain an economic clean slate. Most debt is discharged and wiped away, providing a much-needed relief from your financial obligations. Since Chapter 7 erases most of your debt, the bankruptcy code reserves this form of monetary reprieve for individuals who are in dire financial need.

To file for Chapter 7, you must first past the means test. The means test is a federal formula that determines if you meet the requirements to receive protection under Chapter 7. The means test applies for individuals who are filing for Chapter 7 and have a higher income which means If your income falls below the Arkansas median for your household size, you will pass and may file for Chapter 7 bankruptcy.

If you are unsure whether or not you may pass the means test and declare Chapter 7 bankruptcy,DeLoache Law Office can help! Our experienced Jonesboro bankruptcy attorneys offer the insightful and astute guidance you need.

Call us at 233-7016 to speak with abankruptcy attorney in Jonesboro!

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Why File For Chapter 11 Bankruptcy In Arkansas

A Chapter 11 bankruptcy in Arkansas allows a debtor to reschedule the payments for their debts and even potentially reduce the amount that should be paid to discharge the debts. This is an option for businesses that are likely to make profits in the near future. It can allow them to prevent liquidation. It may also be used to increase the amount of debt that is paid by continuing to carry on business for some time before liquidating. The creditors are unable to collect any amount under the debt outside of the repayment plan and cannot harass the debtor for repayment.

Can A Bankruptcy Be Expunged In Arkansas

Filing Bankruptcy in Arkansas, Chapter 7, 13 &  more

Expungement is a legal process that erases an official record. Even though expungement is rare in bankruptcy court, the provisions of 11 U.S.C. § 105 allow the court to make orders or judgments necessary in determining a bankruptcy case justly. Bankruptcy records are public information, but 11 U.S.C. § 107 gives the court the power to redact some of these records to protect some confidential information or a party from scandalous or defamatory content. Parties can download the Request for Redaction and send the completed form to the courthouse.

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How Does The Means Test Work

The means test was designed to determine whether or not bankruptcy candidates will have income available to pay back some of their debt obligations. If you do not qualify under the means test, petitioning forChapter 13 bankruptcy might be your next best option.

The basic steps of the Arkansas Chapter 7 means test are as follows:

  • Calculating your current monthly income : This is an average of your gross monthly income over the last six months. If you have only recently experienced a financial setback, your attorney might advise you to reserve declaring bankruptcy for a month or two.
  • Compare your CMI to the median income for a household of your size in your geographic area: If your current monthly income is less than the median income for similar households in Arkansas, you automatically pass and do not need to complete the rest of the means test.
  • Determining your disposable income: If you did not automatically qualify by your CMI alone, you must determine if you have enough income left over after allowable expenses are deducted to pay off at least a portion of your debt. If your disposable income is over the allowable limit, you will fail the means test.
  • Should You File For Bankruptcy If It Doesnt Discharge All Of Your Debts

    Even though bankruptcy does not always discharge all of your debts, it can still be helpful in some cases to file. Bankruptcy is designed to give filers a fresh financial start. And depending on the particular type of bankruptcy you pursue, many of your outstanding debts will be addressed through a payment plan or paid off through liquidation of non-exempt assets, which can help you regain control of your finances.

    Its important to realize. However, that filing bankruptcy can have a variety of serious and long-term implications. Not only will you lose 100, 150 or even 200 points depending on your score, but the bankruptcy will stay on your credit report for 10 years for a chapter 7 filing and seven years for a chapter 13.

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    Arkansas Bankruptcy Lawyer Cost

    Most Chapter 7 bankruptcy lawyers charge a flat fee for their services. And before they start charging clients, many Arkansas bankruptcy lawyers offer a free consultation to briefly assess the case, decide if itâs something they can handle, and if so, how much it will cost.

    The attorney fee depends on how complicated the case is, but you can expect an Arkansas bankruptcy attorney to charge anywhere from $595 to $1,500. While this fee is a major factor in deciding who to hire, keep in mind that there are other things to consider when choosing a bankruptcy attorney.

    What Is Bankruptcy Protection In Arkansas

    Arkansas Bankruptcy Exemptions Explained

    Bankruptcy protection in Arkansas is an automatic stay order issued by the court upon receiving a bankruptcy filing. It prevents creditors from attempting to recollect debts owed to them. The court sends a copy of the order to the creditors listed by the debtor at the addresses provided by the debtor. Creditors that receive the order may face consequences if they default on the order. The order prevents foreclosure, repossession, legal action, enforcement of judgments, and telephone calls. Sanctions for failure to comply with the automatic stay order include:

    • Fines and other penalties against the creditor for contempt of court
    • Damages awarded against the creditor

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    What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy In Arkansas

    The major difference between a Chapter 7 and a Chapter 13 bankruptcy in Arkansas is that while a Chapter 7 bankruptcy involves liquidation of the debtors assets, a Chapter 13 bankruptcy involves a reorganization plan. In a Chapter 7 bankruptcy, the case trustee appointed by the court gathers and sells the debtors non-exempt assets and pays the creditors with the proceeds. After payment, the remainder of the debt is discharged. Debts like some taxes, bankruptcy filing fees, mortgages, and car payments are not discharged. The debtor would still have to make these payments after going through a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, the debtor files a repayment plan with the court. The creditors get to vote on the repayment plan before the court decides whether to accept or reject the repayment plan. If accepted, the debtor makes monthly contributions to the repayment plan for three to five years. A Chapter 7 bankruptcy can be filed irrespective of the amount of debt. The debtors eligibility status is determined by the means test. However, in a Chapter 13 bankruptcy, there is a limit to the amount of secured and unsecured debt.

    Arkansas Bankruptcy Exemptions And Law

    By Bret Thurman, J.D. | Reviewed by Joseph Fawbush, Esq. | Last updated April 22, 2021

    Many Arkansas families are on the edge financially. These families should at least consider filing bankruptcy because in many cases, this federal debt relief program is the only way to ensure a better future. Yet mostly because of bankruptcy-phobia, these families hesitate to file.

    This fear is understandable but unnecessary. There are a lot of misconceptions about what happens in bankruptcy. Hopefully, this page will take away some of that fear by providing answers to some commonly asked questions about bankruptcy in Arkansas. Asset protection in bankruptcy is one of the biggest concerns that people have.

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    Arkansas Means Test For Chapter 7 Bankruptcy

    March 14, 2013 By Richland Group

    We often hear in the news of wealthy people declaring bankruptcy. Can someone earn millions of dollars and still declare bankruptcy?

    It all depends on the individuals circumstances. One of the primary purposes of bankruptcy is to discharge or cancel certain debts to give an honest debtor a fresh start. In such cases, the debtor will have no more liability for debts that are discharged. A Chapter 7 bankruptcy case does not involve the filing of a repayment plan as in a Chapter 13 bankruptcy case. Instead, the Chapter 7 bankruptcy trustee gathers and sells the debtors non-exempt assets and uses the proceeds of the sale to pay creditors in accordance with the provisions of the Bankruptcy Code. Part of the debtors property may not be sold because it is subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain exempt property.

    Will Filing Bankruptcy In Arkansas Erase My Debts

    The Advantages and Disadvantages of Filing for Chapter 7 Bankruptcy

    Bankruptcy wipes out many bills, like , overdue utility payments, medical bills, personal loans, and more. You can even get rid of a mortgage or car payment if you’re willing to give up the house or car that secures the debt.

    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’ll want to be sure that bankruptcy will discharge enough bills to make it worth your while.

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    Important: Chapter 7 Qualification Via Arkansas Means Test

    An important element in filing for bankruptcy relief is the Bankruptcy Means Test. The Means Test is a bankruptcy form that calculates your average monthly and annual income. The test compares your income against the median income of other households in Arkansas.

    If your average annual income or median income is below the Arkansas median income, you may qualify for a bankruptcy discharge under Chapter 7. You can estimate whether you qualify for a Chapter 7 bankruptcy using the free Arkansas Chapter 7 Bankruptcy Means Test Calculator below.

    How Do I File For Bankruptcy In Arkansas

    Filing for bankruptcy in Arkansas has a few general requirements. First, you must compile your financial documents. Next, you must complete a credit counseling course. Then, you can submit your petition and materials to the bankruptcy court.

    However, there are eligibility requirements for filing for bankruptcy in Arkansas, and you must also establish the chapter under which you will file your bankruptcy. If you have specific questions, you should speak with a bankruptcy lawyer in Arkansas for legal advice.

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    How Will Chapter 7 Affect My Social Security Disability Payments

    One of the benefits of Chapter 7 is that your Social Security disability payments will likely stay exactly the sameespecially if these payments are your only source of income, and you cannot afford to lose them.

    The only exception could be if you are given disability payments in a lump sum. Do not fear, however. Our knowledgeable attorneys at the Skelton& Stevens Legal Group know exactly how to help you file your claim in a manner that can get you an exemption. Our Chapter 7 bankruptcy lawyers can stay right by your side, so you never feel anxious about getting the help you need.

    Chapter 7 Bankruptcy Arkansas: 3 Things You Need To Know

    Do You Need a Bankruptcy Lawyer? (Arkansas)

    You may have experienced a financial hardship and are considering filing bankruptcy in Arkansas, specifically Chapter 7 bankruptcy.

    There are 3 important things to consider when pursuing Chapter 7 bankruptcy in Arkansas:

  • Do you qualify for a Chapter 7 bankruptcy and what does it cost?
  • What are the alternatives to Chapter 7 bankruptcy?
  • What is specific need-to-know Chapter 7 bankruptcy information for Arkansas?
  • Chapter 7 bankruptcy is the most common bankruptcy in the United States. For example, I would not be surprised if the majority of the 5,896 bankruptcies filed in Arkansas in the year ending June 30th, 2021 were Chapter 7 bankruptcy.

    Lets get started to understand why Chapter 7 is a popular choice in Arkansas.

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    Chapter 7 Bankruptcy For Businesses

    When a person owns a business and can no longer pay its creditors, they may file for Chapter 7, which will involve their business and personal debts and they will be discharged of the dischargeable debts both personally and for the business. Most folks that have a business, personally obligate themselves for the business debts either because the business and person are one and the same or the business could not get credit on its own. If you have a Corporation or LLC, it may become necessary to file separate cases for both you and the Corporation or LLC. If you have a corporation, you really need to talk to us about how to handle such a situation.

    Do I Need A Lawyer To File For Bankruptcy In Arkansas

    You have the right to hire a lawyer when filing for bankruptcy in Arkansas, and because bankruptcy laws are so complex, we recommend you do so. An Arkansas bankruptcy lawyer will protect your rights while reviewing your finances for crucial opportunities.

    You can file for bankruptcy without a lawyer, but if you do, you could end up making mistakes that jeopardize your case. You may want to hire an Arkansas bankruptcy lawyer if you:

    • Have concerns about passing the Chapter 7 means test
    • Want to uncover every opportunity to eliminate your debt successfully
    • Are not sure whether you should file for bankruptcy or use alternatives
    • Are still deciding which bankruptcy filing is right for your situation
    • Want someone with legal experience to analyze your bigger financial picture
    • Want to protect yourself from creditors and collection agencies

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    What Bankruptcy Can Do

    If you are indebt and your finances are out of control, filing for bankruptcy may benefit you. Filing for bankruptcy should keep creditors from harassing you. Once you file, your creditors may no longer contact you about your debts. They cannot garnish your wages or bank accounts or take your property to satisfy debts, even if they already have a judgment against you. Bankruptcy can also help you catch up on missed payments and fees, stop the repossession of your car, and prevent the foreclosure of your home. In some cases, bankruptcy can even help you get your car back after it has been repossessed.

    Arkansas Chapter 7 Bankruptcy Credit Counseling And Debtor Education Courses

    Bankruptcy Lawyer

    When you file for bankruptcy relief under Chapter 7 bankruptcy, you must complete two bankruptcy courses to receive a bankruptcy discharge. This includes a credit counseling course prior to filing a bankruptcy case, and a debtor education course after filing. See below the approved courses for Arkansas

    The United States Trustees office has approved state-specific companies that offer bankruptcy courses. You can access a list of companies in Arkansas offering bankruptcy courses on the UST website. Both courses are available online for a small fee.

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    Are You Eligible For Chapter 7 Bankruptcy In Arkansas Take The Bankruptcy Means Test To Find Out

    TheChapter 7 bankruptcy means test can determine if a Arkansas petitioners income level and expenses are eligible to file for a Chapter 7 bankruptcy. The formula is designed to prevent individuals from Chapter 7 bankruptcy if they make enough money to pay down unsecured debts. If an individual does not qualify for Chapter 7 as determined by the Means Test of Arkansas, he or she may be able to file for a Chapter 13 bankruptcy to repay a fraction of the accrued debt.

    Taking the Chapter 7 means test does not necessarily entail that an individual has to be impoverished to be able to file for a Chapter 7 bankruptcy. An individual who qualifies for a Chapter 7 bankruptcy in Arkansas may still have a high income if he or she has high car and/or mortgage payments, high taxes, and/or other expenses.

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    Can I File Bankruptcy And Keep My House And Car

    Most people who file for bankruptcy protection are able to keep their homes and cars up to a certain value. Under Chapter 7 of the U.S. Bankruptcy Code, debtors are allowed to claim a number of different exemptions for certain types of assets. As long as the equity in the home or the value of the vehicles does not exceed a certain amount, you can keep your home and your car when you file for Chapter 7 bankruptcy.

    If you have more equity in your home or have a vehicle that is worth more than the exemption amount, it is still possible for you to save both of them. Chapter 13 bankruptcy allows you to keep all of your property, but you will have to repay your creditors a portion of what you owe over a period of several years.

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