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Are you drowning in debt?

Do you avoid opening your mail?

Do you ignore calls from an unknown caller out of fear it will be a bill collector?

If you answered yes to these questions, bankruptcy may be the best solution for your financial concerns. Let an experienced Caddell Reynolds Bankruptcy attorney in Fayetteville, AR, develop a discharge or reorganization plan to help you regain control of your finances and your life.

Don’t let the old stigma about filing bankruptcy keep you from learning more about your legal rights to resolve your debt situation. Reach out today for a free consultation to learn if filing for bankruptcy protection is a viable option under your circumstances.

We understand… bankruptcy law is complicated. You shouldn’t have to go through it alone. Trust the skilled Fayetteville bankruptcy lawyers at Caddell Reynolds to guide you through this complex process and into a brighter future.

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Fayetteville Bankruptcy Lawyer Guide

• Why You Should Work With the Respected Attorneys at Caddell Reynolds
• Who Can File for Bankruptcy in Arkansas?
• When Is Bankruptcy Venue Proper in Arkansas?
• Caution: Debtors Cannot Use Venue to Take Advantage of Better Exemptions
• Am I Eligible to File for Bankruptcy in Arkansas?
• Chapter 7 Bankruptcy Eligibility
• Chapter 13 Bankruptcy Eligibility
• When You Need a Bankruptcy Attorney in Fayetteville, AR, Turn to Caddell Reynolds

General Bankruptcy Law

Generally, there are two main types of bankruptcy available to individuals. The chapter that will work best for you depends on your overall financial situation and the type of debt you want to address.

For individuals, the two common types of bankruptcy filings are:

• Chapter 7 Bankruptcy – An individual debtor can request a discharge (cancellation) of certain debts
• Chapter 13 Bankruptcy – An individual requests a reorganization of their debts with the court’s assistance

When you meet with a knowledgeable bankruptcy attorney in our Fayetteville, AR office, we can review your situation and explain the best option for you.

Why You Should Work With the Respected Attorneys at Caddell Reynolds

The legal professionals at Caddell Reynolds have been serving Arkansas bankruptcy clients for many years. Our experienced Fayetteville bankruptcy attorneys are dedicated to finding solutions to the problems our clients face. We want you to gain a fresh start in life, free of overwhelming debt. Contact us at our Fayetteville offices for a free consultation today.

Fayetteville Legal Resources:

• Arkansas Bar Association– The ArkBar is made up of licensed Arkansas lawyers. It monitors and disciplines its members, provides money-saving services, promotes the profession, and alerts others about the issues created by proposed legislation that affects Arkansas citizens and laws.
• University of Arkansas School Of Law– The University of Arkansas School of Law is ranked among the top 10 “Values in Legal Education” and is among the top 42 public law schools, according to U.S. News and World Report. Students get to live in one of the nation’s “Best College Towns” before joining an international alumni network.
• Washington County Judge– The Washington County Judge is the chief executive officer for the county government. Patrick Deakins is committed to serving the communities, ensuring positive change in local governments, and fueling growth and opportunity for all Washington County residents.

Who Can File for Bankruptcy in Arkansas?

Any individual considering filing for bankruptcy must confront an array of complex questions. For example:

• What type of bankruptcy should I file?
• Should I file alone or jointly with a spouse?
• Where should the bankruptcy petition be filed?
• Do I even qualify to file for bankruptcy?

An experienced bankruptcy attorney can answer the first two questions after learning more details about your unique circumstances. We’ll help you make these decisions during a free initial consultation.

In the meantime, let’s look at the venue rules that apply to bankruptcy cases and when those rules permit someone to file in Arkansas rather than another state. Then, we’ll provide a brief overview of the differing eligibility requirements for Chapter 7 and Chapter 13 bankruptcies.

When Is Bankruptcy Venue Proper in Arkansas?

Whenever a person goes to court, numerous complex rules apply to determine what court they can file in.

Venue rules determine the proper state where a person may file for bankruptcy. These venue rules are identical regardless of whether you choose to file under Chapter 7 or Chapter 13.

The bankruptcy venue rules require a bankruptcy petition to be filed in the federal district where the debtor has lived for the longest period during the preceding 180 days, approximately six months.

For example, John Doe wants to file for bankruptcy on January 1. From January to October of the previous year, John lived in Oklahoma City, but he moved to Arkansas in mid-October. If he files for bankruptcy on January 1, he will have to file in the Western District of Oklahoma because he lived there for a longer period during the last six months than in Arkansas.

Caution: Debtors Cannot Use Venue to Take Advantage of Better Exemptions

The U.S. Bankruptcy Code allows each state to determine which exemptions from bankruptcy its residents may claim. Using that authority, each state has adopted a unique set of exemptions for its residents. However, the differences between states’ exemptions could give debtors room to game the system by moving from a state with unfavorable exemptions to one with exemptions that they prefer.

To prevent these kinds of games, the Bankruptcy Code has a different rule for when a person can rely on a state’s exemptions than the venue rule discussed above.

Specifically, bankruptcy courts use a two-step process to determine which state’s exemptions apply:

1. If the debtor has lived in one state for the entire 730 days (i.e., two years) before filing for bankruptcy, the court will apply the exemptions from that state.
2. If the debtor has moved from one state to another within the last two years, then the court looks back an additional 180 days (six months), applying the exemptions from the state where the debtor lived the longest during that prior six-month period.

Here’s an example: Before this year, John Doe (from the example above) lived in Texas his entire life. As of his January 1st filing date, John had moved to Arkansas, so within the last two years. Consequently, the court will look to the six months immediately before those two years. John lived in Texas for the entirety of those six months, so Texas’ exemptions law will apply in John’s case.

Am I Eligible to File for Bankruptcy in Arkansas?

In addition to the venue rules—which determine where a person can file for bankruptcy—federal law also describes rules for determining who is eligible to file for bankruptcy in the first place. The eligibility requirements for filing for bankruptcy vary depending on what type of bankruptcy the person chooses.

In general, there are debtors face common requirements, including:

1. Before an individual can file for bankruptcy, they must have undergone credit counseling from an approved credit counseling agency within the previous 180 days.
2. An individual cannot file for bankruptcy if, during the preceding 180 days, they already filed for bankruptcy, and that case was:
   1. Dismissed by the court for the debtor’s willful failure to follow its orders or appear before the court or
   2. Voluntarily dismissed by the debtor after creditors applied for relief from the automatic stay.

Chapter 7 Bankruptcy Eligibility

Chapter 7 Bankruptcy involves selling a debtor’s non-exempt property to pay off as much of their debts as possible. This chapter is only available if the debtor’s income is too low to support a repayment plan under Chapter 13. The Bankruptcy Code prescribes a means test to determine whether a debtor qualifies for Chapter 7 protection.

The means test has two steps:

1. Is the debtor’s current monthly income—their average income over the six months before filing—less than the state median income? If so, they automatically qualify for Chapter 7.
2. If the debtor’s current monthly income exceeds the state median, a further, more complicated calculation is required. If the result of that calculation is too high, the court will either dismiss the case or convert it to Chapter 13 filing unless the debtor can show special reasons why they should be allowed to continue under Chapter 7.

Chapter 13 Bankruptcy Eligibility

In contrast to Chapter 7, Chapter 13 Bankruptcy is only available if a debtor’s income is high enough to service their debts under a repayment plan. Also, Chapter 13 is only available if the debtor does not have too much debt in total.

Specifically, a person can only file under Chapter 13 if their combined debt—including secured debt, all loans secured by collateral, such as a car loan, and unsecured debt, like credit card debt—is less than $2,750,000.

When You Need a Bankruptcy Attorney in Fayetteville, AR, Turn to Caddell Reynolds

As you can see, filing for bankruptcy in Arkansas involves many complex venue and eligibility rules. Without the help of a knowledgeable Fayetteville bankruptcy lawyer, it is easy to get lost in all the complicated laws and possibly make mistakes. When you are overwhelmed, it’s easy not to take action at all. We can help you start moving in the right direction and find financial relief.

Caddell Reynolds is an Arkansas bankruptcy law firm serving clients in Arkansas and Oklahoma. We work hard to help our clients understand their options under the Bankruptcy Code, decide what is best for them, and successfully navigate the complex process of filing for bankruptcy.

Fayetteville Office

3000 North Market Avenue, Suite A Fayetteville, AR 72703 800-671-4100

Contact us today to schedule a free consultation about your right to file a bankruptcy petition at our Fayetteville office, located at 3000 North Market Avenue, Suite A, Fayetteville AR, 72703. We can also meet at a more convenient location for you.

For a free consultation with one of our Fayetteville bankruptcy attorneys, fill out our simple contact form, or call Caddell Reynolds Injury Law at (479) 252-9267.

IF YOU ARE CONSIDERING FILING FOR BANKRUPTCY IN ARKANSAS, CONTACT THE EXPERIENCED BANKRUPTCY ATTORNEYS OF CADDELL REYNOLDS FOR YOUR FREE CONSULTATION TODAY.

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