How to File for Bankruptcy in Arkansas
Filing for bankruptcy in Arkansas is a process that closely resembles the process of filing for bankruptcy throughout the rest of the United States. This is why becoming familiar with federal bankruptcy laws before taking any steps is a good idea. In addition, anyone who is considering filing for bankruptcy in the state of Arkansas should also take time to learn about local rules and requirements.
Key Details Regarding Filing for Bankruptcy in Arkansas
How does the process of filing for bankruptcy in Arkansas begin? A person who is thinking about filing must decide which form of bankruptcy is appropriate. This is often done with the assistance of a lawyer. However, the form of bankruptcy that a person will ultimately qualify to file for will be determined by a court-administered means test. A means test requires a debtor to supply detailed information regarding liabilities, income, assets and more. It is important to answer all questions on a means test honestly and accurately. Any attempts to provide false information or mislead the court could result in serious penalties. It is important to fill out a means test carefully because any mistakes could result in delays, extra fees or a case being dismissed from the court. This is why it is suggested that a person consults a bankruptcy attorney when beginning the bankruptcy process.
Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two most common forms of bankruptcy. Chapter 7 bankruptcy allows for debts to be discharged. Chapter 13 bankruptcy sets up a payment plan that allows a debtor to pay back creditors over time. There is an option called Chapter 12 bankruptcy available to farmers and fishermen. In addition, people with high debt amounts or business debts may be eligible to file for Chapter 11 bankruptcy.
Preparing to File for Bankruptcy in Arkansas
A person must complete a credit counseling course that is administered by an agency that’s approved in the state of Arkansas during the six months before filing for bankruptcy. A list of approved course providers can be accessed here. In addition, it is required that all debtors complete a debtor education course during the bankruptcy process. A list of approved providers for this course can be found here. The bankruptcy process officially begins when a debtor files a formal bankruptcy petition with the court. This step is important because filing a petition with the court triggers an automatic stay. An automatic stay stops all creditors from attempting to contact a debtor or trying to collect any debts that are owed. It will also be necessary to attend a mandatory meeting of creditors at some point once the bankruptcy process is in motion. This is typically a very short meeting that simply serves as a formality. However, it is essential because it provides creditors with an opportunity to try to prove that a debtor has nonexempt assets that can be forfeited one last time. In addition, creditors have the chance to voice objections to a payment plan that has been set up for a debtor under a Chapter 13 bankruptcy case.
The Specifics of Filing for Bankruptcy in Arkansas
The United States Bankruptcy Court for the Eastern and Western Districts of Arkansas is located in Little Rock. The cost to file for Chapter 7 bankruptcy in the state of Arkansas is $335. The cost to file for Chapter 13 bankruptcy in the state of Arkansas is $310. A full schedule of fees for the bankruptcy process in the state of Arkansas can be found here. The forms necessary for initiating and completing the bankruptcy process in Arkansas can be found here.