Written by the Upsolve Team.
Updated September 29, 2020
Have you reached the point where your debt is simply out of control, and your creditors are harassing you? Don’t worry, by filing bankruptcy in Little Rock you can get out of this tricky situation. In some cases, little Rock bankruptcy can stop foreclosure on your house and give you a chance to catch up on missed payments. Little Rock, Arkansas has a high poverty rate of 17.8%, which is one of the reasons people consider filing bankruptcy in Little Rock.
A Chapter 7 bankruptcy in Little Rock is the quickest and easiest way to legally wipe out your debt and give you peace of mind. Chapter 7 is the “traditional” bankruptcy where, with a couple of exceptions, such as student loans, taxes, and your domestic support obligations (child support and alimony) — all your debt will disappear, and you can confidently start over with a clean slate. Also called the “debt adjustment” type of bankruptcy, Chapter 13 bankruptcy is a debt repayment chapter for people with regular income. In this bankruptcy chapter, you may keep your property by repaying your creditors over the life of a repayment plan that can extend from 36 to 60 months. If you are filing bankruptcy in Little Rock, you have to decide whether to file for bankruptcy protection under Chapter 7 or Chapter 13. Chapter 7 bankruptcy in Little Rock will eliminate debts, like unsecured loans and medical bills much quicker. If you have considerable unsecured debt with limited income, you may be the right candidate for filing a Chapter 7 bankruptcy in Little Rock.
Many people in Arkansas never consider Chapter 7 bankruptcy in Little Rock because they have heard two myths. Firstly, that filing bankruptcy in Little Rock forces a filer to sell off all of their property, called assets, to pay their creditors. Secondly, people think they make too much money to qualify. But these are just myths. The Arkansas bankruptcy laws protect your assets up to a specific amount with exemptions. Many individuals who receive Little Rock bankruptcy relief under Chapter 7 will find that most if not all of their assets are protected. And you can’t afford to hire a lawyer to file Little Rock bankruptcy as you can getfree legal help or file bankruptcy on your own!
Little Rock Bankruptcy Lawyers - Estimated Cost
Little Rock bankruptcy attorneys help individuals who have to file for bankruptcy. The typical cost of a bankruptcy lawyer in Little Rock ranges from $595 to $1,500. Several factors can affect the cost of hiring an attorney in Arkansas, including the type of bankruptcy, the complexity of the case, filing fees, and more. A bankruptcy lawyer in Little Rock can help you fill out all the paperwork and gather all the necessary documents. However, hiring a bankruptcy lawyer is not mandatory, and you can file a Chapter 7 bankruptcy in Little Rock on your own and save a lot of money.
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How to File Bankruptcy in Little Rock, Arkansas for Free
Are you considering filing bankruptcy in Little Rock but don’t have the financial resources to hire a lawyer? Want to know how to file bankruptcy in Little Rock for free? This City Guide will give you an overview of the Little Rock bankruptcy process so that you can get out of debt soon.
Collect Your Little Rock Bankruptcy Documents
Before you start filling out any forms, locate your paystubs for the past six months, credit card statements, tax returns for the past four years, bills, personal property tax assessment, deeds, real property assessment, and car registration documents. These documents will help determine which kind of Arkansas bankruptcy is best for you. The bankruptcy laws require that people filing bankruptcy in Little Rock provide a complete listing of all their debts. You can use your credit report and all your recent bills and collection notices for this purpose. Filing Chapter 7 bankruptcy in Little Rock comes with strict requirements to be truthful, accurate, and complete in your bankruptcy forms, and meeting them helps ensure things go as smoothly as possible.
Take Credit Counseling
Before your Little Rock bankruptcy case can be filed, you have to take a credit counseling course that is offered by an approved credit counseling agency for the Eastern District of Arkansas. Do not worry as you will not have to sit in a classroom. You may take the class on the telephone or online. On the completion of your credit counseling course, you’ll receive a certificate of completion that you have to submit to the Arkansas Bankruptcy Court along with your Little Rock bankruptcy petition. You will find a list of approved credit counseling services on theU.S. Trustee’s website.
Complete the Bankruptcy Forms
To file your Little Rock bankruptcy, either you or your bankruptcy attorney will have to submit your bankruptcy forms to the Bankruptcy Court. These bankruptcy forms ask you to describe your recent financial status and financial transactions. You must complete all Court forms when filing bankruptcy in Little Rock starting with the cover sheet. The great news is that filing bankruptcy in Little Rock doesn’t mean you have to put your actual bank statements, bills, and tax information into the record for everybody to see. When completing your forms, be thorough and honest and avoid mistakes that people make when filing bankruptcy in Little Rock by carefully following the instructions for each one of the forms.
Get Your Filing Fee
Filing Chapter 7 bankruptcy in Little Rock costs $338 per case. On the other hand, bankruptcy court fees for a Chapter 13 bankruptcy filing are set at $313. This is true if you’re single and filing by yourself or married and filing with your spouse. The fee is necessary as it provides funding for the Court and the bankruptcy Trustees that make the Arkansas bankruptcy system work. Note that if you’re in a particularly tight financial situation or unemployed, you might be able to ask the Court to waive your filing feeor pay it off in installments. If the Bankruptcy Court waives your filing fee, then you do not have to pay it when you are filing bankruptcy in Little Rock.
Print Your Bankruptcy Forms
When you’re ready to get your Little Rock bankruptcy case filed, make sure to set aside sufficient time to print and sign all documents before heading to the courthouse. As filing a Chapter 7 bankruptcy in Little Rock is very document-intensive, your bankruptcy case in Arkansas will be off to a good start if you get everything filed in one go. If you have hired a lawyer for filing bankruptcy in Little Rock, they will file the case electronically for you. To save your time at the courthouse, carefully review all pages and sign your name wherever necessary. You have to print everything on standard, white, 8.5" x 11" paper. You can visit a local print shop if you don’t have access to a printer.
Go to Court to File Your Forms
When you’ve completed all the above steps, you may go to the courthouse to file your Little Rock bankruptcy forms. When filing bankruptcy in Little Rock, make sure you bring along a second copy of all forms with you and have the clerk endorse or stamp it. It is best to have everything neatly organized in a single filing package that you may hand to the clerk when you get to the courthouse. As soon as the clerk provides you with your case number, you may let all your creditors know that they can no longer contact you. You can to the U.S. Bankruptcy Court on Second Street, across the street from the Old Statehouse Museum, for filing bankruptcy in Little Rock.
Mail Documents to Your Trustee
To simplify and guide people who have filed for Arkansas bankruptcy, a neutral bankruptcy Trustee is appointed in order to guide each case through the legal process of as per the rules of the US Bankruptcy Code. The Trustee’s duties often include the following:
verifying the completeness and accuracy of your paperwork
looking for any signs of fraud
finding money to pay your debts
Your trustee would like to review your latest federal income tax return so you should send a copy to their office. Everyone filing a Chapter 7 bankruptcy in Little Rock has a duty to cooperate with their bankruptcy Trustee. So, you should provide all the information your Trustee needs in a timely manner.
Take Bankruptcy Course 2
The main goal of filing Chapter 7 bankruptcy in Little Rock is to obtain a discharge. And for the Arkansas Bankruptcy Court to grant you the discharge, you have to complete a course on financial management after you file your case. Some of the lessons this course covers are on budgeting, use of credit, and smart shopping. There are many approved debtor education providers in Arkansas. Some course providers automatically file your certificate of completion with the Court for you, while others will send it to you to file with the Arkansas Bankruptcy Court. $9 Debt Education is an approved course provider in Little Rock.
Attend Your 341 Meeting
Soon after you file your Little Rock bankruptcy, the Court will schedule a 341 Meeting, also known as the “meeting of creditors.” The meeting of creditors has to take place at least 21 days after your Arkansas bankruptcy filing. You have to attend this meeting, or your bankruptcy case will be dismissed. This hearing offers your bankruptcy Trustee and creditors an opportunity to ask you questions under oath and confirm the information that is contained in your Little Rock bankruptcy schedules and statements. This meeting will usually take place in a room, sometimes at the bankruptcy courthouse and sometimes at other locations, such as the U.S. Trustee’s Office located at the Bank of America Building in Little Rock.
Dealing with Your Car
A car is an important asset for most people in Arkansas, and it is important to know all your options when filing bankruptcy in Little Rock. In most cases, filers who are worried about losing property, like their car, in Little Rock bankruptcy are happy to find that the US Bankruptcy Code allows them to keep most property. If your vehicle is paid off, or worth more than the amount owing on your loan, you may keep your vehicle provided its value or equity, is lower than the exemption you can claim on Schedule C. If you would like to surrender your car to the lender, your lender will file a motion with the Court, asking permission to retake your car.
Arkansas Bankruptcy Means Test, Bankruptcy Forms, and Exemptions for Little Rock
Arkansas Means Test
As Chapter 7 bankruptcy in Little Rock is meant only for individuals who truly can’t pay their debts, the Arkansas bankruptcy law requires Chapter 7 filers to pass the Arkansas bankruptcy Means Test to see if they qualify. This test has two stages. Find out about theChapter 7 income limits to make sure you are filing bankruptcy in Little Rock under the proper Chapter. The Means Test in Arkansas is a formula that determines whether a filer’s income and assets are low enough to file a Chapter 7 bankruptcy in Little Rock. The main idea is to keep people with higher incomes from filing Chapter 7 bankruptcy.
Median Income Levels for Arkansas
Arkansas Median Income Standards for Means Test for Cases Filed On or After May 1, 2021
|Household Size||Monthly Income||Annual Income|
Poverty Levels for Arkansas
Arkansas Fee Waiver Eligibility for Cases Filed On or After May 1, 2021
Eligible for fee waiver when under 150% the poverty level.
|Household Size||State Poverty Level||Fee Waiver Limit (150% PL)|
Arkansas Bankruptcy Forms
Note that the Arkansas bankruptcy forms are made up only of the official national forms that people filing bankruptcy throughout the country are required to complete. When you file a Chapter 7 bankruptcy in Little Rock, there are no local forms. You’ll have to complete all these forms when filing bankruptcy in Little Rock. Fill your bankruptcy forms carefully and provide updated and accurate information, and if you need assistance, check out our free bankruptcy assistance and see if you are a good fit for our free service. As the forms are available for free, you should not purchase blank forms from anyone.
We know that the Arkansas Bankruptcy exemption rules are extremely important to anyone considering Little Rock Bankruptcy protection. Arkansas law allows filers to use the federal bankruptcy exemptions or the bankruptcy exemptions provided under the Arkansas law when filing bankruptcy in Little Rock. TheArkansas bankruptcy exemptions allow you to exempt real or personal property that you or your dependent use as a residence. If you are unmarried, the exemption is limited to $800. If you are married, then the bankruptcy exemption is limited to $1,250.Individuals in Little Rock usually keep exempt property when they file a Chapter 7 case.