What Do You Need To Know To File Bankruptcy
The bankruptcy forms ask you about everything you make, spend, own, and owe. Youll also include some bankruptcy basics, like what type of bankruptcy youre filing under and whether a bankruptcy lawyer is helping you. If you hire a lawyer, they will complete the forms for you based on the information you submit to their office.
Print Your Bankruptcy Forms
If you have access to a computer and printer, youâre all set to print out your bankruptcy forms on your own. Although many forms look similar, so itâs easy to forget to include a form or place some pages out of order. Use a checklist to make sure you have every required document, and your packet is in order. Youâll also need to make sure you sign everything in the correct place. If you file using the Upsolve tool, youâll get all your bankruptcy forms in a single downloadable packet. It includes electronic dividers that flag each page that needs your signature.
When printing out your forms, make sure you do so on regular, white letter-size paper and in black ink. Also, donât print your pages double-sided or staple them together.
If you donât have access to a printer, you can go to a branch of your public library, an office supply, copy, and/or shipping store which can usually print out your forms for a fee. If you can afford to, print out an extra copy for your records to refer back to during the bankruptcy process.
Student Loan Debt Relief
In most bankruptcy cases, student loan debt cannot be discharged. If you obtained federal student loans while you were in college or graduate school, you will have to continue to pay those back even if you go through bankruptcy. However, this is not always true. If you are fully disabled and unable to earn income, you may be able to fight and have your student loans discharged. This requires the help of an experienced and aggressive bankruptcy lawyer. At The Law Group of Northwest Arkansas LLP, we have helped some of our clients prove a complete and permanent disability to have their student loans forgiven.
Don’t Miss: How Many Bankruptcy Trump
Different Types Of Bankruptcies
There are several different types of bankruptcies, but the majority of individuals can only file for Chapter 7, which is also known as liquidation bankruptcy, and Chapter 13 bankruptcy, which is also known as the wage earners plan.
Chapter 7 bankruptcy can help you wipe some or all your debts in a few months. However, you may have to surrender your assets like cash, property, etc. It stays on your credit reports for ten years.
Whereas with Chapter 13 bankruptcy, some of your debts will get discharged, but you can keep your property and repay the debt through a three to five year repayment plan approved by the bankruptcy court, says Hoorfar. It will stay on your credit report for seven years.
After I File For Bankruptcy Will I Lose My Home Car And Other Property To Assure Debt Payment
One of the primary purposes of bankruptcy protection is to allow you to keep your property by changing the repayment terms through a Chapter 13 bankruptcy.
Normally, you do not lose secured propertysuch as a home or caras long as its value is factored into a Chapter 13 bankruptcy repayment plan. This is one of the main purposes of filing Chapter 13 instead of Chapter 7.
Don’t Miss: Bankruptcy Cost In Ohio
How To File Bankruptcy For Free In Arkansas
Upsolve is a nonprofit tool that helps you file bankruptcy for free.Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we’ll never ask you for a credit card.Explore our free tool
In a Nutshell
Filing for bankruptcy doesnât have to be scary and confusing. We provide helpful tips and resources to help you file Chapter 7 bankruptcy in your state without a lawyer.
Written byAttorney Andrea Wimmer.
The decision to file Chapter 7 bankruptcy can be difficult. Not only do you have to figure out how to do it, but you also have to accept the fact that your monthly income isnât enough to pay all your bills. It might seem like only certain people declare bankruptcy, but itâs more common than you may realize. Walt Disney, who many consider to be a tremendous creative and financial success story, filed for bankruptcy in 1923. Then thereâs the one-time Arkansas Razorbacks coach John L. Smith who filed in 2012.
This guide will help you understand how filing bankruptcy works in Arkansas, even if you donât have an attorney to help you. Everyoneâs financial situation is unique. For some people, bankruptcy makes the most sense, but other people may want to look into other debt relief options first. Read on to learn more about filing bankruptcy in Arkansas federal court and how to do it without a lawyer.
Oregon Bankruptcy Lawyer Cost
Attorneys generally charge a flat fee for Chapter 7 cases. In Oregon, the average cost is between $499 and $1,500. The cost depends on how complicated your case will be. Remember that cost isnât the only thing you should consider when hiring a lawyer. In some cases, a lawyer could save you money because they know the law and might be able to protect more property than you could on your own. You can attend a free consultation with lawyers youâre interested in working with to see which might be a good fit for your situation.
You May Like: Rent After Bankruptcy
How Many Times Can You File For Chapter 7 Bankruptcy In Arkansas
After receiving a Chapter 7 discharge, you must wait 8 years from the date that case was filed before you are eligible for another Chapter 7 discharge. To be eligible for a Chapter 13 discharge following a Chapter 7 discharge, you must file the Chapter 13 case at least 4 years after the filing date of the Chapter 7 case. After discharging your unsecured debts through Chapter 7, an immediately filed Chapter 13 bankruptcy could be used to pay off tax debts or other types of debt that survived the prior case. If you do not receive a Chapter 7 discharge, you may be able to refile bankruptcy without penalty depending on the circumstances surrounding the lack of discharge.
Federal And Akansas Bankruptcy Exemptions
In the state of Arkansas specific property will be exempt from creditors up to a certain dollar amount in value. After filing for bankruptcy, you will be able to keep any exempted property. However, property that is not covered under the exception is vulnerable to being seized, liquidated and used to pay off outstanding debts.
Any exemption limit will only apply to the equity that you own in the property. In other words, if you owe $3,000 on a motor vehicle with a value of $10,000, then your equity in the vehicle will be $7,000. If the property secured by a loan is covered under the exemption list, if you are current on payments, and all your equity in the property is covered by exemptions, you will likely get to keep the property through Arkansas bankruptcy proceedings.
In Arkansas, individuals have the right to proceed with their bankruptcy with federal exemption statutes rather than the Arkansas exemptions therefore, you may wish to consult with a bankruptcy attorney to decide which statutes are more favorable to your specific situation.
Property exemptions under Federal statutes include:
For individuals who can show proof of living in Arkansas for the past two years continuously, alternative property exemption under Arkansas statutes include:
- For married individuals or individuals with dependents: Homesteads up to 1/4 acre in size are exempt in urban areas with no value limitation. Homesteads up to 80 acres are exempt in rural areas with no value limitation
- Clothing
Also Check: How Many Times Have Donald Trump Gone Bankrupt
A Arkansas Trustee Is Assigned To Your Bankruptcy Filing
A bankruptcy trustee is assigned to your bankruptcy case to review the paperwork and look for non-exempt belongings that you may own. You have to submit such forms as a recent tax return to the trustee. If you have non-exempt belongings, the trustee may manage the sale and liquidation of those belongings.
See the Chapter 7 and Chapter 13 trustees in Arkansas for bankruptcy district, name and contact information. As a Chapter 13 bankruptcy is much longer, you may have more interaction with the Chapter 13 trustee or someone from his/her office.
Dealing With Your Car Loan
If you own a car that you still owe on, youâll have to let the bank and the court know what you want to do with it one one of your bankruptcy forms.
If you want to surrender the car to the lender and discharge the debt, you donât have to do anything other than stop making your payments. The bank will either file request with the bankruptcy court to ask permission to retake the car, or wait until your discharge is granted before picking it up.
If you want to keep the car, you can either reaffirm the loan or redeem the car. If youâre reaffirming your loan, the bank will send you a reaffirmation agreement after your case is filed. You have to complete and sign the agreement and return it to the bank within 45 days from your 341 meeting. The bank files the signed agreement with the court for approval.
To redeem the vehicle you have to file a motion with the court and, once granted, buy the car from the bank for its current value. This gets you out of having to pay the amount left on the loan, but payment has to be made in one lump sum.
Read Also: How Many Times Has Donald Trump Filed Bankruptcy
Where Do I File For Bankruptcy
Most people file for bankruptcy in the federal district court closest to where they live. However, if you run a business in a different district and most of your property is located there, you may have to file in that location.
Also, if youve moved in the past six months , you may have to file in the federal district court where you used to live. It all depends on where the greater portion of your property has been for most of the past 180 days.
Wherever youre required to file, know that you can handle most of your business with the court, including filing your bankruptcy forms, by mail. However, you will need to visit the courthouse in person at least once, for a meeting with the bankruptcy trustee.
For more details, and to find your local court, see our articles on How to File for Bankruptcy.
Will Filing Bankruptcy In Arkansas Erase My Debts
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.
Don’t Miss: Ohio Chapter 7 Bankruptcy
Undoing Preferential Transfers That You Made Before Filing
One tool the trustee has is the authority to undo what are called preferential transfers that is, money you transferred to someone else just before filing bankruptcy.
Under this power, the trustee will be very interested in undoing any recent repayments of debts you made to your relatives or friends just before bankruptcy, as these are called a preference. The trustee can reverse these transactions and reclaim it for the bankruptcy estate because, by repaying these people, you have preferred some people you owe money to over others and bankruptcy does not allow this.
You May Like: How Many Bankruptcies Has Donald Trump Filed
Responding To A Lawsuit
If you have been served with a civil Summons and Complaint or Petition, you must respond to the claim or a default judgment could be entered against you. It is preferable to consult an attorney when you have been served however, if you are unable to obtain an attorneys services, you have the option of filing a response or Answer for yourself, or pro se.
Failing to file an Answer to the Complaint within the specified time period could result in a default judgment being entered against you, so it is important that you file an Answer in a timely manner. Within the State of Arkansas, you normally have thirty days to file an Answer or Response to avoid being in default.
Allegations that are not denied in response to the Complaint or Petition are deemed admitted, so it is important that all allegations contained in the Complaint or Petition are addressed in your Answer.
Your answer should begin with the caption of the case.
For example:
IN THE CIRCUIT COURT OF ________ COUNTY, ARKANSAS
___ DIVISION
VS. Case No: __________
JOHN DOE DEFENDANT
You should probably deny all of the allegations contained in that specific paragraph until you consult with an attorney.
Always add an additional numbered paragraph stating that you deny all allegations that are not specifically admitted.
Recommended Reading: Trump Bankruptcy History
How To File Chapter 7 With No Money
Depending on your cases complexity, you may not require the assistance of a bankruptcy attorney. It also depends on how comfortable you are with filing for bankruptcy on your own. However, keep in mind that bankruptcy laws are very complex and require extensive forms that include various legal jargon. In fact, you may end up losing all your assets or not clearing up all your debts.
You may be able to file Chapter 7 by obtaining assistance from a legal aid society, utilizing a pro bono attorney, or paying attorneys through a repayment program.
What Are The Downsides To Filing Chapter 7 Bankruptcy
Chapter 7 bankruptcy helps some debtors clear out old debts to start fresh, but it isnt a perfect solution to every persons debt problems. First, the debtor must meet certain income guidelines to file this type of bankruptcy case, and even if she does qualify, it may not be in her best interests to use Chapter 7.
Recommended Reading: Filing For Bankruptcy In Idaho
How Bankruptcy Works In Arkansas
In most respects, filing for bankruptcy in Arkansas isn’t any different than filing in another state. The bankruptcy process falls under federal law, not Arkansas state law, and it works by unwinding the contracts between you and your creditorsthat’s what gives you a fresh start.
But Arkansas’s laws come into play, too, in a very important 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 going over some basics.
Figuring Out If Youre Eligible For Chapter 13
You may qualify for Chapter 13 bankruptcy if you have a steady income and your debts are worth less than the dollar amounts set by federal bankruptcy law. In 2019, the amounts are:
- $1,257,850 of secured debt.
These amounts are adjusted every few years and set out in 11 U.S. Code, Section 109.
In addition, to qualify for Chapter 13, you must have filed your state and federal income tax returns for the past four years.
Recommended Reading: How To Declare Bankruptcy In Canada
How To File Bankruptcy For Free In Massachusetts
Upsolve is a nonprofit tool that helps you file bankruptcy for free.Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we’ll never ask you for a credit card.Explore our free tool
In a Nutshell
10 step guide on how to file Chapter 7 bankruptcy in Massachusetts without a lawyer. This guide provides an overview of the bankruptcy process for filers seeking debt relief in the Arizona Bankruptcy Court.
Written byAttorney Andrea Wimmer.
Itâs no coincidence that the U.S. Constitution enables Congress to create bankruptcy laws. Living and struggling with debt is something even the Founding Fathers knew.
In fact, most early residents in the colonies started their life in the New World as debtors, paying their fare for passage across the Atlantic by becoming indentured servants. Others chose where to settle based on the promise of getting a reprieve from having to pay their debts, as was offered by Virginia in 1642.
If youâre struggling to make ends meet every month, whether thatâs due to a job loss, unexpected medical bills, a divorce, or something else, filing any type of bankruptcy can get you back on your feet.
District Of Massachusetts Requirements
If you have more than 35 individual creditors when you file your Massachusetts bankruptcy, the court requires that you provide the court with a CD or USB storage device as an ASCII text file.
If you have to file your case outside of normal business hours you can do so, but only if you make prior arrangements with the clerk’s office.
Finally, even though reviewing it is not a requirement, the Massachusetts Bankruptcy Court has published a detailed guide for people filing bankruptcy without a lawyer , that can be .
Recommended Reading: How Many Years Until Bankruptcy Comes Off Credit Report
What Happens At My First Appointment With A Bankruptcy Attorney
We offer a free consultation to review a consumers financial profile. In the consultation, well review the immediate problems that they have with debt, as well as the less immediate debt problems. We will evaluate income and expenses in order to see which option is most suitable for them. In some circumstances, the best option is not to file bankruptcy at all! If bankruptcy is appropriate, then we will review the chapters of bankruptcy that appear to best fit the situation, review payment options and take the case from there.
Also Check: Can Restitution Be Included In Bankruptcy