Written by the Upsolve Team.
Updated September 29, 2020
Has your debt and bills become unmanageable? Are you getting harassing phone calls from your creditors at home and work? Well, there is a solution. Filing bankruptcy in Paron may sound like a scary concept, but it is a great solution if you are suffering from severe debt. Many people in Paron file for Arkansas bankruptcy after incurring serious debt from various life events, like illness, foreclosure, divorce, job loss, garnishment, repossession, or a lawsuit. Although Paron bankruptcy is not something you should take lightly, it is a solution that allows you to get out of debt while treating your creditors fairly as well. Chapter 7 bankruptcy in Paron involves selling your unprotected property, if any, to repay as much of your debts as possible. Chapter 7 is only available if your income is too low to support a court-mandated repayment plan under Chapter 13. A Chapter 7 bankruptcy in Paron is the quickest and easiest way to legally wipe out your debt and give you peace of mind. Chapter 7 or liquidation bankruptcy is an ideal option for personal debt as it helps wipe out unsecured debts such as credit cards, personal loans, and medical bills, but without a repayment plan. By filing bankruptcy in Paron you can confidently start over with a clean slate. Chapter 13 bankruptcy in Paron, also called reorganization or wage-earner bankruptcy, is the second option and is ideal for people who have property they would like to keep. If you are filing bankruptcy in Paron, you have to decide whether to file for bankruptcy protection under Chapter 7 or Chapter 13. After filing a Chapter 7 bankruptcy in Paron, your debts may be discharged in just three to six months.
Bankruptcy laws are often complicated. And to make matters worse, plenty of rumors, speculation, and misinformation surround the process of filing bankruptcy in Paron. A common misconception in Arkansas is that all bankruptcy options are basically the same, with the same result. While Chapter 7 bankruptcy in Paron is the most common type of bankruptcy for most individuals, there are many other options as well. Many people in Arkansas believe that they can only file Paron bankruptcy once. Although the bankruptcy laws in the US were tightened in 2005, you can file for Arkansas bankruptcy more than once. And you don’t need an attorney to file Paron bankruptcy as you can get free legal help or file bankruptcy on your own!
Paron Bankruptcy Lawyers - Estimated Cost
If you decide to work with a Paron bankruptcy lawyer, their fees will usually account for the biggest chunk of your total bankruptcy costs. Most Arkansas bankruptcy attorneys offer a free consultation, so there is no harm in meeting with a bankruptcy attorney. The typical cost of a bankruptcy lawyer in Paron ranges from $595 to $1,500. A bankruptcy lawyer in Paron can help you fill out all the paperwork and gather all the necessary documents. You can, however, file Chapter 7 bankruptcy in Paron on your own as it is not mandatory to hire a lawyer. Coming up with any extra money may seem impossible if you are already struggling to pay your basic expenses and bills and creditors are breathing down your neck.
How to File Bankruptcy in Paron, Arkansas for Free
As scraping together money to hire a Paron bankruptcy lawyer can be difficult for many people in Arkansas, they want to know how to file bankruptcy in Paron for free. If you are overwhelmed with debt and can’t hire a lawyer, this City Guide will give you an overview of the Paron bankruptcy process so that you can get out of debt soon.
Collect Your Paron Bankruptcy Documents
Filing bankruptcy in Paron can be a complex process. It often entails gathering a lot of paperwork before you can complete your Paron bankruptcy forms. One of the most effective ways to simplify the process is to get organized. Note that knowing what documents are needed to file Arkansas bankruptcy is the first important step in getting organized and ensuring a quick and smooth process during filing. You will have to locate your paystubs for the past six months, credit card statements, and tax returns, among others. As giving proper notice to all parties you owe money to is important in any bankruptcy, you can start by getting your credit report from each of the three credit reporting agencies.
Take Credit Counseling
As required by Arkansas bankruptcy law, you have to participate in a credit counseling program before filing bankruptcy in Paron. It is important that you take this counseling course from an approved provider. The good news is that most of these providers allow you to complete the course online or by phone. It will just take you one or two hours to complete the class. Reputable credit counseling organizations in Arkansas can help you develop a budget, advise you on managing your debts and money, and offer free workshops and educational materials.
Complete the Bankruptcy Forms
The Arkansas bankruptcy forms are the documents that you file with the Court in order to start your Chapter 7 bankruptcy in Paron. 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 Paron, for free, online. These Paron bankruptcy forms ask you to describe your recent financial status and financial transactions. Remember that filing bankruptcy in Paron constitutes a legal proceeding in federal Court, which ultimately means you’re the person who will sign the bankruptcy forms under penalty of perjury. So, avoid the common mistakes that people make when filing bankruptcy in Paron.
Get Your Filing Fee
Although it might seem strange that you will have to pay a filing fee to file a Chapter 7 bankruptcy in Paron, you have to pay it, unless you qualify for a fee waiver. The filing fee for a Chapter 7 bankruptcy in Paron is $335. Bankruptcy court fees for a Chapter 13 bankruptcy filing are set at $310. However, if your household income is lower than 150% of the federal poverty guidelines, then you may file an application to have your fee waived. Another option is to pay your fee in installments. The filing fee must be paid in either cash or in the form of a cashier's check or money order.
Print Your Bankruptcy Forms
Now that the difficult part of completing your Paron bankruptcy forms is done, it’s time to get all documents ready for filing with the Bankruptcy Court. As only Arkansas bankruptcy lawyers are permitted to use the Court's electronic filing system, people filing bankruptcy in Paron without a lawyer must provide a signed paper version of all the required bankruptcy documents. As filing a Chapter 7 bankruptcy in Paron 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 filled out all the bankruptcy forms on your own and have them saved on a computer as multiple files, you should print a checklist like this one to keep track of all the bankruptcy forms you need.
Go to Court to File Your Forms
The next step in filing bankruptcy in Paron is to file your bankruptcy forms with the Court. Note that this is an important legal step as all your creditors will be notified about your Paron bankruptcy, and they won’t be able to contact you in order to collect debts. 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. The automatic stay will go into effect when you file your bankruptcy paperwork. Paron is in Saline County, and people of Saline County have to file for bankruptcy in the Arkansas Eastern District Bankruptcy Court. The county is served by the courthouse inLittle Rock, AR.
Mail Documents to Your Trustee
Bankruptcy trustees play a crucial role in both Chapter 7 and Chapter 13 bankruptcy cases in Arkansas. The U.S. Trustee Program hires and appoints individual Trustees to administer Arkansas bankruptcy cases. What the bankruptcy Trustee actually does will depend on the type of bankruptcy case. Your Paron bankruptcy Trustee will review the bankruptcy petition, various schedules, and statements. The Trustee is charged with challenging a creditor claim if one occurs and objecting to discharge if necessary. Everyone filing a Chapter 7 bankruptcy in Paron 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
Bankruptcy Course 2, also known as debtor education course, is a lot like Course 1. In this course you will build on what you learned during your pre-filing course. Some of the things you will get help with include budgeting, money management, and how to devise and stick to a financial plan that leads you to a brighter future. People filing Chapter 7 bankruptcy in Paron have the option of taking this course on the phone, in person or over the internet. There are many approved debtor education providers in Arkansas. You will receive a certificate as proof of completion, and you will have to submit this completion certificate to the Court before your Paron bankruptcy discharge can be entered.
Attend Your 341 Meeting
After your Paron bankruptcy petition is filed, the Bankruptcy Court will schedule a meeting of creditors under Section 341 of the U.S. Bankruptcy Code. While your creditors might appear at the meeting, usually only the bankruptcy Trustee and sometimes a U.S. Trustee representative is there to ask you questions regarding your Arkansas bankruptcy petition. You have to attend this meeting, or your Paron bankruptcy case will be dismissed. 341 meeting is usually held in a meeting room, not a courtroom, and no judge will be present. In most cases, the meeting of creditors is over in ten minutes or even less.
Dealing with Your Car
Many people often hold off on filing bankruptcy in Paron because they’re worried about what will happen to their motor vehicle if they do. If your vehicle is paid off when your Arkansas bankruptcy case is first filed, you just have to deal with your Trustee. If the value (or equity, if there’s still a balance owing on your loan) is lower than the available exemption, then you may keep your car without doing anything else. If you would like to surrender your car to the lender, your lender will file a motion with the bankruptcy Court, asking permission to retake your car. You will have to disclose your ownership in the car and claim the suitable exemption on your Schedule C.
Arkansas Bankruptcy Means Test, Bankruptcy Forms, and Exemptions for Paron
Arkansas Means Test
The Arkansas bankruptcy Means Test is used in bankruptcy cases to determine your eligibility to file Chapter 7 bankruptcy in Paron. The test is also used in Chapter 13 bankruptcy proceedings to determine how much a filer has to pay back to their unsecured creditors when filing bankruptcy in Paron. The Arkansas bankruptcy law requires Chapter 7 filers to pass the Arkansas bankruptcy Means Test to see if they qualify. For purposes of the Arkansas bankruptcy Means Test, “income” includes:
Dividend and interest income
Find out about the Chapter 7 income limits to make sure you are filing bankruptcy in Paron under the proper Chapter. You must collect some of the information required to complete this calculation, like your current monthly income.
Median Income Levels for Arkansas
Arkansas Median Income Standards for Means Test for Cases Filed On or After May 1, 2020
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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.
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Arkansas Bankruptcy Forms
The first Arkansas bankruptcy form you will have to file is a Voluntary Petition for bankruptcy. Note that this bankruptcy form will act as a cover sheet for your remaining bankruptcy documents. The Court has put together this in-depth listing of the filing requirements, which includes all required forms, for people thinking about filing for Paron bankruptcy protection. All of the 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.
Arkansas bankruptcy exemptions are able to lower your bankruptcy risk when filing bankruptcy in Paron. Exemptions are the laws which ensure that your property is protected after you file Arkansas bankruptcy in order to ensure that you get a “fresh start. 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 Paron. If you decide to use the federal bankruptcy exemptions, you can easily exempt up to $23,675 of equity in the value of your homestead. Individuals in Paron usually keep exempt property when they file a Chapter 7 case. Exemptions are a powerful tool for people considering Paron bankruptcy.