Written by the Upsolve Team.
Updated September 29, 2020
When you are having financial problems that cause stress and anxiety, time is of the essence. Acting quickly and finding the right solution is important. If you are facing creditor harassment, wage garnishment, liens, or other serious debt problems, do not wait to get relief. Often times, filing bankruptcy in Forrest City is the answer. Mounting credit card bills and medical bills are common problems that many folks in Forrest City face because of the high poverty rate (31.7%) in the city. By filing Arkansas bankruptcy, you can repay or eliminate your debts under the protection of the bankruptcy Court.
Filing a Chapter 7 Bankruptcy in Forrest City is one of the best options for many people in Arkansas. Chapter 7 is also called debt settlement or “straight bankruptcy”, and obtaining a Chapter 7 discharge means that you can continue on with your life without worrying about your debts, as they will be canceled through the Forrest City bankruptcy process. With Chapter 13 bankruptcy, you have to pay the debts that you can afford while paying for your regular living expenses. To file Chapter 13, you must have a sustainable income that often doesn’t permit you to file under Chapter 7 bankruptcy. Filing Chapter 7 bankruptcy in Forrest City has many benefits. You can stop creditor harassment, wipe out medical debt, stop foreclosures, and more. And, in most Arkansas bankruptcy cases, you won’t lose your car or home. When filing bankruptcy in Forrest City it is important to determine which type of Forrest City bankruptcy suits you best.
Despite the prevalence of many myths and rumors associated with Arkansas bankruptcy, the truth is that filing bankruptcy in Forrest City is a sensible and practical path used by thousands of people every year. Many people have a misconception that it is immoral to file for Forrest City bankruptcy protection. This is not true as both federal and states laws allow it. Many folks in Forrest City think that if they are married, their spouse will have to file Arkansas bankruptcy as well. This is another myth as you can file individually or jointly. And filing bankruptcy in Forrest City is not a complicated and drawn-out process as many believe. The process is simple, and you can make it simpler by getting free legal help.
Forrest City Bankruptcy Lawyers - Estimated Cost
Arkansas bankruptcy attorneys understand the financial burden you are under. This is why many lawyers offer a free consultation. Some lawyers in Forrest City also work on a flat fee basis. The typical cost of a bankruptcy lawyer for a Chapter 7 bankruptcy in Forrest City ranges from $595 to $1,500. Some Arkansas bankruptcy chapters are more complicated to file than others, and as they need more work, they tend to cost more. However, filing Chapter 7 bankruptcy in Forrest City is very simple and you can do it on your own as it is not mandatory to hire a lawyer.
How to File Bankruptcy in Forrest City, Arkansas for Free
While filing bankruptcy in Forrest City may seem expensive, if you take some time to think about it, you will realize that it can save you thousands of dollars. Many people in Arkansas who are considering Forrest City bankruptcy are strapped for cash and want to know how to file bankruptcy in Forrest City for free. If you are one of those people, this City Guide is for you.
Collect Your Forrest City Bankruptcy Documents
One of the main requirements of filing bankruptcy in Forrest City is an accurate and complete disclosure of all of the information requested in the bankruptcy forms. As no one has all the information in their head, when you’re starting this process, the first step is to collect all the documents that will make filing bankruptcy easier for you. As you have to provide the Arkansas Bankruptcy Court with a clear overview of your monthly expenses, it is better to pull a few bank statements to help you make sure you did not miss anything. As giving proper notice to all parties you owe money to is important in any bankruptcy, you should get your credit report from each of the three credit reporting agencies.
Take Credit Counseling
Before filing bankruptcy in Forrest City, you are required to complete a credit counseling course. The key purpose of credit counseling in Arkansas is to help you evaluate your financial situation to ensure that Arkansas bankruptcy is right for you. Credit counseling is mandatory even if it’s fairly clear that Chapter 7 bankruptcy is your only option. You should take this course from an approved provider in Arkansas as they can issue a valid completion certificate that you have to file with the Arkansas Bankruptcy Court. Most agencies charge a reasonable fee for their services. Credit Counseling of Arkansas is an approved creditor counselor in Arkansas.
Complete the Bankruptcy Forms
This is where all your hard work in getting yourself organized will eventually pay off. The bankruptcy forms are the specific forms that everyone filing bankruptcy in Forrest City has to complete and submit to the Bankruptcy Court. If you’re working with a Forrest City bankruptcy lawyer, they will complete your forms based on the documentation and information they get from you. If you’re handling all the legwork on your own, don’t worry as you can find detailed instructions and the official Court forms you will need for filing bankruptcy in Forrest City, for free, online. If you’re eligible to file with Upsolve, then we will help you complete the forms.
Get Your Filing Fee
The filing fee for a Chapter 7 bankruptcy in Forrest City is $335. On the other hand, Bankruptcy Court fees for a Chapter 13 bankruptcy filing are set at $310. You’ll only be able to requestthe Arkansas Bankruptcy Court waive your filing fee if your income is lower than 150 percent of the federal poverty guidelines. Note that if you don’t qualify for a waiver, but can’t wait to file your bankruptcy case until you have come up with the full fee, you can prepare this application to pay your Court filing fee in installments. It will give you about four months to pay the fee.
Print Your Bankruptcy Forms
When filing bankruptcy in Forrest City without a bankruptcy attorney, you have to bring all your documents to the Court in hard copy format. You should not print all your bankruptcy forms for a Chapter 7 bankruptcy in Forrest City until you have completed the credit counseling course and collected the full filing fee since some of the information in your forms is time-sensitive. If you don’t have a printer at home or work, you should go to a local store dealing in paper goods, like Floyd Printing Service to get everything printed. Use the standard size paper for printing.
Go to Court to File Your Forms
If you do not have a bankruptcy attorney, then filing Chapter 7 bankruptcy in Forrest City means going to the Arkansas Bankruptcy Court to bring in your forms in person. You can also mail your documents to the Court, but as mailing everything may result in a delay, it’s better to visit the courthouse to handle this. When you go to Bankruptcy Court, keep in mind that you’ll be entering a federal building, so review the Court’s security policies before you head out. The automatic stay will go into effect as soon as the Court receives and processes your Forrest City bankruptcy paperwork. You can visit the Fayetteville location of the Arkansas Bankruptcy Court to file your paperwork.
Mail Documents to Your Trustee
The bankruptcy Trustee is an independent contractor for the US Department of Justice. When you file Arkansas bankruptcy, the Court appoints a bankruptcy Trustee to represent your interests and those of the creditors. A bankruptcy Trustee is required in all Chapter 7 Forrest City bankruptcy cases as impartial control of the bankruptcy estate is needed. Your Trustee will make recommendations to the Arkansas Bankruptcy Court regarding your discharge, so you have to cooperate with your bankruptcy Trustee. If you do not have any assets the law allows your bankruptcy Trustee to sell, they will notify the Bankruptcy Court that nothing will be distributed to the creditors.
Take Bankruptcy Course 2
After you’ve filed for Forrest City bankruptcy, you will have to complete a course on debt and financial management by an approved provider in Arkansas. Completion of this debt management course is mandatory in order for your debt to be discharged. The course lasts one hour and can be taken by telephone, online, or in person. This instructional course on financial management will usually include:
Instructions on developing a budget.
Education on how you can use credit responsibly and wisely
Lessons you how to better manage your money.
Comply with this important requirement; otherwise, your Arkansas bankruptcy case will be closed without a discharge.
Attend Your 341 Meeting
Your involvement with the Arkansas bankruptcy judge will usually be very limited. In most cases, the only formal proceeding at which you must appear is the meeting of creditors. The meeting is usually held in Arkansas at the offices of the U.S. Trustee. It is strictly a fact-finding meeting. However, if any new or troubling facts come out at this meeting, your Trustee or creditors can file a motion in the Forrest City Bankruptcy Court for the judge's consideration, but that rarely happens. Most meetings typically last about 5 - 10 minutes. You may also ask your Trustee any questions you want.
Dealing with Your Car
Sometimes, filing bankruptcy in Forrest City is difficult and complex. When is the best time to file? What chapter do I file? Surprisingly, at times, the answer may depend on whether you’ll be allowed to keep your vehicle. The main purpose of a Chapter 7 bankruptcy in Forrest City is to provide people with a fresh start, freeing them from the burden of their current debt. With this objective in mind, the US Bankruptcy Code allows you to retain certain property and assets and protects it from your Arkansas bankruptcy Trustee. And this property includes some of the equity in the car. If you like your car and can repay the loan, you may enter into a reaffirmation agreement with the lender to keep everything as it was before.
Arkansas Bankruptcy Means Test, Bankruptcy Forms, and Exemptions for Forrest City
Arkansas Means Test
To file for a Chapter 7 bankruptcy in Forrest City, you first have to pass the Arkansas bankruptcy Means Test. The main purpose of the Chapter 7 Means Test is to ensure that only those people who really can’t pay their debts file Arkansas bankruptcy. The Means Test in Arkansas compares your average income with the incomes of other households of the same size in Arkansas. If your median income is not higher than the median income, you will be eligible to file for Chapter 7 bankruptcy in Forrest City. Passing the Arkansas bankruptcy Means Test might be your first and important step towards getting out of debt, thereby stopping creditors from bothering you.
Median Income Levels for Arkansas
Arkansas Median Income Standards for Means Test for Cases Filed On or After May 1, 2020
|Household Size||Monthly Income||Annual Income|
Poverty Levels for Arkansas
Arkansas Fee Waiver Eligibility for Cases Filed On or After May 1, 2020
Eligible for fee waiver when under 150% the poverty level.
|Household Size||State Poverty Level||Fee Waiver Limit (150% PL)|
Arkansas Bankruptcy Forms
The Chapter 7 bankruptcy forms are comprised of the official national forms; anyone who files for a Chapter 7 bankruptcy in Forrest City uses these forms. All of the Arkansas bankruptcy forms, like Schedule B – Personal Property, must be completed and included in your Chapter 7 bankruptcy filing. Leaving a bankruptcy form blank makes it unclear whether the form was overlooked and information is missing, or there was no entry. All of the Arkansas bankruptcyforms are available for free online. You shouldn’t purchase blank forms from anyone. If you are feeling overwhelmed about filing bankruptcy in Forrest City because of these forms, check out our free bankruptcy assistance and see if you are a good fit for our free service.
When you file Arkansas bankruptcy, you’ll rely on many bankruptcy exemptions in order to protect your personal property. Arkansas bankruptcy exemptions cover you in Chapter 7 as well as 13 bankruptcies. So, it’s of the utmost importance that you know and understand how these Arkansas exemptions can help protect your assets. Arkansas law allows filers to use the exemptions mentioned in the U.S. Bankruptcy Code or the bankruptcy exemptions provided under the Arkansas law when filing bankruptcy in Forrest City. Individuals in Forrest City keep exempt property when they file a Chapter 7 case. It is important that married people filing bankruptcy together must choose the same set of Arkansas bankruptcy exemptions.