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January 2016 Archives

Most retirement accounts are fully protected in a bankruptcy

Individual  retirement accounts and 401k retirement accounts, along with other recognized retirement plans, are exempted from seizure or interference in a bankruptcy. Federal bankruptcy law protects the owner's retirement plans so that they pass unaffected through a bankruptcy filing both here in Arkansas or any other state. The asset cannot be touched by the bankruptcy trustee to help pay for a person's debts, and the asset will remain effective and intact after the bankruptcy is discharged. However, the U.S. Supreme Court has ruled that an inherited IRA is not exempt and will be lost in a bankruptcy.  

Governor's son hits guardrail, arrested for drunk driving

The son of the Arkansas governor was arrested on Sunday, Jan. 25, for DWI, careless driving and refusing to submit to a breath test. For refusing to submit to the test, William Asa Hutchinson III, who is 40, will get an automatic six-month suspension of his driver's license. He was arrested for drunk driving by Arkansas State Police on the southbound exit ramp of Interstate 49, according to police records.

Older bankruptcy has less impact than expected on credit reports

The first step to correcting and improving one's credit score is to obtain a copy of the credit report and examine it thoroughly. Although a bankruptcy technically may be reported for between seven and 10 years in Arkansas and elsewhere, there may be several inaccuracies or incorrect entries on a credit report that a person can correct on his or her own. Each type of credit blemish has a reporting window during which it can appear on your record.

The facts regarding assault charges may provide a defense

Charges of criminal assault and aggravated assault in Arkansas are based on fact specific events that must be supported by credible evidence. There may be altercations that point to two or more people being involved in fighting, but the police may decide to arrest only one of the individuals due to an 'official' version of the facts that they accept as a basis for their case against the defendant. Thus, the possibility that the police have adopted an erroneous set of facts may leave ample room for defense counsel to investigate and establish a range of issues and facts that may exonerate the defendant or result in mitigating circumstances. Recently in Little Rock the police arrested a 37-year-old apartment manager for aggravated assault, second-degree domestic battery and residential burglary.

Bankruptcy is a strong remedy to eliminate runaway medical bills

Cancer patients in Arkansas and nationwide, and those with a history of cancer, are more than two times as likely to file bankruptcy than others. Additionally, there are ample reports that indicate that medical bills are a top cause of bankruptcy filings in the United States. One of the problems faced by cancer patients and cancer survivors is that cancer therapy expenses have increased two to three times faster than other medical expenses.

Bankruptcy gives consumer control in resolving debt problems

It is frustrating for many consumers in Arkansas when a bank makes extraordinary monetary demands when the borrower is out of a job or laid up with a disability. Lower income in the form of unemployment or other benefits won't keep a family financially healthy and can be the ticket to financial insolvency. However, bankruptcy attorneys universally report that their clients have expressed their desire and need to pay their bills despite suffering unfortunate setbacks.

Bankruptcy can be the first option rather than the last

The popular layman's advice in Arkansas and all other states is to consider bankruptcy only as a last resort. However, a lot of emotional energy and money can be saved by considering bankruptcy as the first option, according to some debt relief experts. To clarify, it is wise to look at bankruptcy first as soon as it has been determined that the debtor's income is far too minimal to make even modest monthly payments toward the total debt owed.

Too much debt may point to bankruptcy instead of payment plan

When the debt load of an individual or family residing in Arkansas or elsewhere reaches a certain point, it may be that no comprehensive payment plan with creditors can possibly succeed. The consumer's limited ability to repay in affordable monthly installments, based on available income and necessary living expenses, may doom the plan at the outset. If such a repayment plan were attempted, it would take decades to pay off the debt, and, in some cases, the amount owed may go up rather than down. That scenario is generally one that cries out for bankruptcy relief.