Bankruptcy FAQs
Facing financial difficulties is never easy. It can be a time of great stress and uncertainty. However, you do have options. Bankruptcy is made to provide people with a fresh start, freeing them from overwhelming debt. The key is understanding all your options and making the decision that's right for you.
That's why we're here, at the Bond Law Office. We're committed to helping you navigate through these challenging times, providing you with the information and guidance you need to make informed decisions about your financial future. Whether you're considering bankruptcy as an option or have already made up your mind to file, we're here to answer your questions and guide you every step of the way. Our team proudly serves clients in Fayetteville, Fort Smith, and The Arkansas River Valley, including Harrison, Eureka Springs, Clarksville, Waldron, Mena, and Van Buren.
Bankruptcy Frequently Asked Questions
The following are common questions people have when they are thinking of filing for bankruptcy.
How do the different chapters of bankruptcy differ?
There are several types of bankruptcy, each with its own process and outcome. Chapter 7, often called liquidation bankruptcy, allows you to eliminate most of your debts. Chapter 13, known as reorganization bankruptcy, lets you create a plan to repay your debts over a period of three to five years. And Chapter 11, primarily used by businesses, allows them to reorganize their debts and continue operating.
Which chapter should I file under?
The appropriate chapter depends on your unique circumstances. The type and amount of debt you have, your income, and your goals for the bankruptcy process all play a role. It's important to consult with an experienced bankruptcy attorney to determine the best path forward for you.
Can I keep my house and car if I file for bankruptcy?
In many cases, you can keep your home and vehicle when filing for bankruptcy. However, the specific rules vary depending on the chapter of bankruptcy and the state you live in. We can help you understand the exemptions and how they apply to your assets.
Will I lose my retirement accounts if I file for bankruptcy?
Most often, retirement accounts are protected from creditors in bankruptcy. Federal law and state exemptions often provide significant protection for retirement savings. However, it's always a good idea to consult with an attorney to ensure your specific retirement accounts are properly exempted.
Does bankruptcy stop creditor calls?
Yes, filing for bankruptcy triggers an automatic stay, which stops creditors from taking any collection actions against you. This provides immediate relief and allows you to focus on the bankruptcy process.
How long does bankruptcy appear on a credit report?
Chapter 7 bankruptcy typically remains on your credit report for 10 years, while Chapter 13 remains for 7 years. But remember, the impact of bankruptcy on your credit score lessens over time, and you can start rebuilding your credit as soon as the bankruptcy process is complete.
Can filing for bankruptcy stop a foreclosure?
Filing for bankruptcy can temporarily stop a foreclosure because of the automatic stay that halts all collection actions. This gives you a chance to explore options to save your home.
What if creditors aren’t respecting my bankruptcy discharge?
If creditors continue to pursue collection actions after your bankruptcy discharge, notify your attorney immediately. They can take legal action to enforce the discharge and protect your rights.
Can I file for bankruptcy more than once?
Yes, you can file for bankruptcy more than once, but there are specific rules and time limits on how often you can receive a discharge.
What are the bankruptcy exemptions in Arkansas?
Bankruptcy exemptions in Arkansas allow you to protect certain property from creditors when filing for bankruptcy. These can include your homestead, personal property, wages, pensions, public benefits, tools of your trade, insurance, and other assets. However, the specific exemptions available to you depend on various factors, including the chapter of bankruptcy you're filing under.
Do I need a bankruptcy attorney?
While you can file for bankruptcy without an attorney, it's highly recommended to have one. Bankruptcy laws are complex, and an attorney can help you navigate the process, protect your rights, and maximize the benefits of bankruptcy.
Discover Your Options With an Attorney
At Bond Law Office, we're dedicated to helping you understand your bankruptcy options and make informed decisions. Our experienced attorney will guide you through the process, explain the potential outcomes, and help protect your rights. We're here to provide personalized advice based on your unique circumstances.
Every situation is different, and there's no one-size-fits-all solution when it comes to bankruptcy. That's why we take the time to understand your specific needs and goals. We're here to help you find the best possible solution for your financial future.
Facing bankruptcy can be overwhelming, but you don't have to do it alone. With our experience and guidance, you can navigate this complex process with confidence. Let us help you take the first step towards a fresh financial start. We proudly help clients in Fayetteville, Fort Smith, and The Arkansas River Valley, including Harrison, Eureka Springs, Clarksville, Waldron, Mena, and Van Buren.