   
Stuttgart: Searcy: Little Rock: Forrest City: Pine Bluff: Russellville: Local Calling Numbers: |
Chapter 7 BankruptcyChapter 7 is commonly referred to as "straight liquidation". What this means is the Chapter 7 Trustee will take all of your "non-exempt" property, if there is any, and sell it to pay your debts; however, in 98% of the cases handled by this firm, there is no "non-exempt" property for the Trustee to sell. Only in very, very unusual circumstances does anybody lose property to the Trustee, because the property is "non-exempt". 
In order to keep secured property in a Chapter 7, you must, usually, be current on your payments, enter into a "re-affirmation agreement" with the secured creditor and continue making your payments. A Chapter 7 will wipe out all of your dischargeable debts, the Bankruptcy rules spell out exactly what property you may exempt and what non-dischargeable debts are, and are discussed in more detail in the Exemption section and Non-Dischargeable Debt section. Chapter 7 Bankruptcy For BusinessesWhen a business can no longer pay its creditors, it may file (or be forced by creditors to file) for bankruptcy under Chapter 7 in a federal court. Filing Chapter 7 states that the business ceases it’s operations unless continued by a trustee. Typically, a trustee is appointed as soon as possible and generally sells all the assets of the business to be used to pay creditors. When very large businesses enters Chapter 7, the company may be divided up into portions that can be sold to other companies. What this means is that not all employees may be forced to find a new job. Chapter 7 Bankruptcy For IndividualsChapter 7 bankruptcy for individuals is generally called a “straight bankruptcy” in which the individual is permitted to keep certain exempt property. Most liens, such as real estate mortgages and auto loans, are not exempt. Exemptions vary from state to state, so it’s important to contact an experienced Arkansas bankruptcy lawyer if you live in the state of Arkansas. If there are any assets, they are sold by the trustee to repay creditors. For most purposes, a bankruptcy stays on the individual’s credit report for up to 10 years. This can affect an individual’s credit unfavorably, although other factors can also scar your credit rating such as high debt. Consumer creditworthiness is a complicated matter in and of itself, and ability to obtain credit in the future depends on many factors, making this hard to predict. Creditworthiness is only one issue to consider when determining whether to file a Chapter 7 bankruptcy. |
