What is Chapter 7 Bankruptcy in Arkansas

Chapter 7 Bankruptcy in Arkansas

Financial hardships can strike any person at any given moment in time leading you to consider a Chapter 7 Bankruptcy. Common cases we see stem from divorce, unexpected unemployment, sudden and exorbitant medical expenses or a number of other causes each unique. These hardships can quickly drain your cash reserves and become a drain, not only to your finances, but also your mental well-being. If you find yourself overwhelmed with debt that you cannot repay, it’s time to seek the legal expertise of The Flynn Law Firm.

Filing a Chapter 7 bankruptcy will give you the opportunity to completely discharge (delete) most all unsecured debt. Can you file under Chapter 7? You’ll have pass the “Means Test.” The “means test” is a simple formula that determines whether your income and assets are low enough for you to file Chapter 7 bankruptcy. The idea is to keep filers with higher incomes from filing for Chapter 7 bankruptcy as a way to voluntarily wipe out debt when they have the means to repay. Those who fail the means test may use a Chapter 13 bankruptcy to repay a portion of their debts, but may not utilize the Chapter 7 bankruptcy to wipe out their debts altogether.

We recommend giving us a call to schedule a one on one, private consultation to discuss the pros and cons of Chapter 7 Bankruptcy filings in regards to your unique situation, however, we have a chart to help you better understand the differences in Chapter 7 vs Chapter 13 filings.

We have offices in Cabot, Arkansas that serve the needs of those who desire debt relief in the form of a Chapter 7 bankruptcy. We can provide you with the information you need, including Arkansas state exemptions. Before you make a decision regarding your bankruptcy declaration, get the facts from an experienced Chapter 7 bankruptcy attorney. Attorney John Flynn has more than 15 years of experience with bankruptcy law, having filed thousands of bankruptcies and helped numerous people and their families gain a fresh financial start. We can help you, too.