Filing for bankruptcy is an important decision, and the attorneys at Bankruptcy Services Of Arkansas & Oklahoma want to make sure that the type of bankruptcy protection that you choose is the right one for you.
Generally, a debtor’s major interests in a Chapter 7 case are to retain exempt property and obtain a discharge that covers as many debts as possible. A discharge releases the debtor from personal liability for discharged debts and prevents creditors from taking any collection action against the debtor or the debtor’s property.
Chapter 7 bankruptcy, also know as “liquidation” bankruptcy, is a federal court process that liquidates your debts. Both individuals and businesses can file for Chapter 7 bankruptcy.
In both cases, a trustee is appointed by the court to liquidate certain assets that belong to the debtor to pay off as many of their debts as possible. Unlike other bankruptcy filings, a Chapter 7 bankruptcy does not require a repayment plan. Filing a Chapter 7 bankruptcy is an opportunity for an individual to get a FRESH START and be discharged of credit card and other kinds of unsecured debt. An automatic stay goes into effect immediately once a debtor files for bankruptcy that prohibits creditors from taking any actions to collect the debts you owe, such as lawsuits, foreclosure, eviction, and interruption of utility services.
For Individuals Filing Chapter 7 “Consumer” Bankruptcy: Since October 2005, a new bankruptcy law has added new requirements to the bankruptcy process (see Bankruptcy Laws).
For Businesses Filing Bankruptcy Under Chapter 7: When a business files for bankruptcy under Chapter 7, the business ceases all operations and shuts itself down. Unlike Chapter 11 Bankruptcy, no reorganization plan is put into place and the business is not allowed to continue doing business. A trustee is appointed to liquidate the business’s assets to pay its debts. Secured creditors are paid off first, followed by unsecured creditors, and stockholders are only paid if the other creditors are paid off completely.
The attorneys at Bankruptcy Services Of Arkansas and Oklahoma will handle all aspects of your Chapter 7 bankruptcy so that you will get the FRESH START you deserve. We are a debt relief agency, and we help people and businesses file for bankruptcy.
When you’re filing bankruptcy, it is critical to understand your legal rights. The attorneys at Bankruptcy Services of Arkansas & Oklahoma personally meet with every client for the initial consultation to determine the appropriate course of action with FREE consultations and offer affordable payment plans.
Bankruptcy Services Of Arkansas & Oklahoma focuses on Consumer and Business Bankruptcy Law under Chapter 7 of the U.S. Bankruptcy Code. We serve Northwest Arkansas and Eastern Oklahoma. Our law offices are conveniently located in Fayetteville, Arkansas, and Stilwell, Oklahoma.
To schedule a free and confidential strategic planning session with a bankruptcy attorney, please call Bankruptcy Services Of Arkansas & Oklahoma.
Affordable payment plans are available.
Bankruptcy Services Of Arkansas & Oklahoma 