Arkansas Bankruptcy Facts

Are you struggling with debt that you can’t seem to pay off no matter what you do? Are creditors on your back, trying to get you to pay them money you just don’t have? Do you worry about losing your property in foreclosure? If so, there’s a solution for you, and it’s called bankruptcy protection.

Bankruptcy is a federal process in which debtors – both individuals and businesses – can reduce or possibly eliminate their financial obligations completely. There are several different petitions that can be filed in Arkansas, but if you are approved for protection, you can kiss your debt good bye and look forward to a life without financial burdens holding you down.

In order to determine which chapter is best for you, there are a few things you should know about bankruptcy and about the options it provides for debt relief. Below are just a few examples of the most commonly filed chapters and what kind of outcome you can expect from each.

Choosing Between Bankruptcy Chapters

Although there are several bankruptcy petitions that can be filed in Arkansas, Chapter 7 and Chapter 13 are the most popular. Chapter 7 involves liquidating your assets to pay for your debts and can be filed by both individuals and businesses. Chapter 13, on the other hand, is reserved mostly for individuals and involves paying off creditors on a payment plan without having to lose any valuable assets.

Each petition has its set of pros and cons, so let’s take a look at the differences between each petition a little further.

Arkansas Chapter 7 Bankruptcy


  • Most – if not all – of the debt is wiped out to give the petitioner a “clean slate” financially
  • Cases are short, typically lasting between 3 to 6 months
  • No minimum amount of debt is required to file
  • Certain assets are exempt from liquidation, including the debtor’s place of residence, personal effects such as clothes or heirlooms, and retirement benefits – to name a few


  • All non-exempt property is liquidated to pay off debts
  • Only serves as a temporary defense against foreclosure
  • Requirements are stricter and approval is harder to come by
  • Debtors can only file for Chapter 7 bankruptcy protection every 6 years in Arkansas

Arkansas Chapter 13 Bankruptcy


  • No assets are liquidated; debtor keeps all their property
  • Debtors are given between 3 to 5 years to repay creditors
  • Foreclosure is avoided as long as the repayment plan is adhered to
  • Debtors can file for Chapter 13 at any time and repeatedly without restriction


  • Petitioners are still responsible for paying creditors; debts are not entirely eliminated
  • Takes a lot longer to emerge from
  • More complex, so fees are higher
  • Stuck in the bankruptcy process for several years
  • Not available to businesses

How an Arkansas Bankruptcy Lawyer Can Make a Huge Difference in the Outcome of Your Case

It can be very confusing to determine which bankruptcy petition is right for your particular needs and financial goals. There are times when Arkansas debtors qualify for both Chapter 7 and 13 and may not know which option to choose. However, bankruptcy is not a process you have to go through alone. There are several experienced bankruptcy lawyers in Arkansas that are ready to help you obtain debt relief and be rid of your financial burdens once and for all, and we are here to ensure you find them. was created to bridge the gap between debtors and attorneys to help link each petitioner with their ideal local bankruptcy lawyer who will protect their best interests and stop at nothing until the best possible outcome for the case is attained. Your attorney will handle every detail regarding the bankruptcy process and will protect your assets from creditor seizure at all costs.

Contact one of our acclaimed Arkansas bankruptcy attorneys and put an end to your financial troubles today.