-
-
Bankruptcy shouldn't have to be thought of in a bad way, especially when you consider the fact that filing for bankruptcy was originally meant to give people facing financial challenges the opportunity to start over fresh. If you're wondering about filing for bankruptcy in Arkansas, you may find it to be a truly appropriate solution to your financial struggles. This page shows you How to File for Arkansas Bankruptcy.
-
-
Introduction
Your bankruptcy filing will be taking place in federal court since bankruptcy falls under the jurisdiction of federal law in every state across America. However, Arkansas law will still be playing a role at certain points along the way. For instance, it might determine which assets are protected from liquidation and what the maximum dollar value of those items can be. -
Bankruptcy Questions : Protecting Your Money & Assets During Bankruptcy
Attorney Robert Todd discusses the ins and outs of filing for bankruptcy in this brief video. He goes over exactly what situations warrant bankruptcy, in addition to the importance of representing all of your assets and obligations in a fully truthful manner. If you are found to have misrepresented your situation at any point in the bankruptcy proceedings, your discharge may not happen at all.
-
Step 1: What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a legal proceeding in the United States created to liberate a person facing financial struggles from their unsecured debt obligations. However, Chapter 7 does not get rid of all secured debt that is backed by collateral like car payments or mortgages, or secured lines of credit. This form of bankruptcy, since it's less complex than a Chapter 13, is sometimes called a liquidation bankruptcy or straight bankruptcy. Some people are uncomfortable with the thought of filing for chapter 7 due to what they've been told or read about asset liquidation, but asset sales can be completely avoided in a variety of cases if you have the ability to pass the means test as covered in Step 2 below. Don't forget that even if a Chapter 7 bankruptcy turns out not to be quite what you're looking for, it could still worth considering a Chapter 13 restructuring instead. -
Step 2: The Chapter 7 Income Test
In order to pass the means test so that you're able to declare Chapter 7 bankruptcy, you need to show that your total income or salary is at or below the state median in Arkansas. Though this median is released by the Census Bureau, it does vary depending on the size of your household. The following maximum incomes apply for cases filed after March 15, 2009http://research.lawyers.com/Arkansas/Bankruptcy-in-Arkansas.html:- Single individual: $33,623
- Two person family: $45,435
- Three person family: $48,909
- Four person family: $56,822
- Five+ person family: $56,822 plus $6,900 for each extra individual over four
Step 3: Chapter 7 Exemptions for Arkansas
When considering filing for bankruptcy in Arkansas, one of the first things you need to do is talk to a bankruptcy lawyer and about your options and what you have a right to claim in terms of exemptions. Once you have confirmed that you are able to declare chapter 7 bankruptcy under the means test covered above, a bankruptcy attorney will be able to formulate a strategy that will allow you to keep as many of your assets as possible. In Arkansas, there are actually two different exemption schemes, a federal plan and a state plan, and you can choose the one that works best for you. Here are a just a few of the exemptions allowed in Arkansas under both plans in 2009/2010. Note that married couples can double exemptions under the Federal (first) plan only:http://research.lawyers.com/Arkansas/Bankruptcy-in-Arkansas.html- Jewelry to $1,350; - double for married couples
- Unemployment benefits, workers' compensation benefits, public welfare assistance
- Sixty days' of wages earned but unpaid
- Your motor vehicle to $3,225 - double for married couples
- Tools of trade, professional library $750.
- The wearing apparel for you and your family.
- If you are not married, you may select certain personal property, up to the sum of $200. The exemption amount is increased to $500 if you are married or the head of a family.
- IRA contributions made more than a year prior to bankruptcy $20,000.
About this page
-
Page Views0
This page currently has no vertical manager.
