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Chatper 7 Archives

Hotel group requests bankruptcy in Arkansas

When a business is costing more than it brings in with profits, it's sometimes time to sell or to consider bankruptcy. By selling the property off, you can avoid staying in debt. With a bankruptcy, you may be able to sell for a lower price that is affordable to others while still eliminating any outstanding debts you owe.

Stop fretting over what's done and take action for the future

February 11th is National Don't Cry Over Spilled Milk Day, and while it's likely one of those tongue-in-cheek holidays created to fill a fun calendar, we think the spirit of the day is perfect for anyone dealing with critical debt levels. It's so easy to get caught up in what you've already done wrong that you never turn around to figure out what you can do to fix the issue now and in the future.

Bankruptcy is a useful tool for getting a fresh financial start

Having more bills than you have money is a situation that isn't fun to be in. If this is your reality right now, it is time to take control of your finances so that you don't have to live with the struggle any longer than necessary. One option that you have is bankruptcy. Many people will scoff at the prospect of filing bankruptcy, but it is important to realize that this can be a very useful tool if you are truly trying to get your finances back on track.

What debts can't be discharged?

A Chapter 7 bankruptcy might be your least-desired option, or it might be the answer you're looking for to get ahead financially. There are a few things that you have to know about this kind of bankruptcy, though, because it won't excuse you of everything you owe.

Credit card debt rising; bankruptcy filings may also increase

After the carefulness that consumers in Arkansas and elsewhere showed during and after the recession, they are starting to flex their spending muscles again with respect to the use of credit cards. Credit card debt is predicted to hit $1 trillion this year, which will be near the $1.02 trillion record set in 2008 at the beginning of the recession. Not only will carrying high debt balances have a negative impact on the consumer's credit score, but bankruptcy filings can be expected to rise in the near run.

Supreme Court okays debtor refund on conversion to Chapter 7

When a Chapter 13 payment plan bogs down due to reduced income or other financial setbacks, the debtors may find it necessary to convert to a Chapter 7 and discontinue the Chapter 13. The debtor in a Chapter 13 proceeding in Arkansas or any other jurisdiction has a right to make that conversion at any time. One problem that may arise, however, is regarding the debtor's monthly payments still held by the Chapter 13 trustee and not distributed to creditors at the time of conversion to Chapter 7. As a general rule, the trustee usually refunds that balance to the debtors after deducting fair sums for administrative expenses.

The math makes Chapter 7 a powerful option for unsecured debt

The trouble with much of the conventional wisdom about debt overload is that it often asks for virtually superhuman financial sacrifice by, in one way or another, paying off essentially all of the debt that is owed. Programs such as consolidation plans, paying one debt at a time, or even negotiated "reduced" settlements with each creditor are all treacherous and exhausting pathways that often fail or provide no long-term benefit to the debtor. When one does the math and makes relevant comparisons, no remedy works better in Arkansas or nationwide than a Chapter 7 bankruptcy.

Supreme Court protects statutory exemptions in Chapter 7

In all bankruptcy districts, including in Arkansas, the debtor is given statutory exemptions to retain certain property in a bankruptcy. The Chapter 7 trustee has the obligation to sell the debtor's property that is not exempt, and to distribute the proceeds to the creditors. In most consumer bankruptcies, however, the exemptions are sufficient to allow debtors to retain their basic furnishings, belongings and other specified property.

Supreme Court case will affect debtors with underwater mortgages

It’s a scenario thousands of Americans can identify with. After the housing bubble burst in the late 2000s, home values plummeted. Homeowners found themselves owing more on their mortgages than their homes were worth. Many also had second or even third mortgages, all underwater.

Inherited IRAs could be subject to bankruptcy claims, court says

For people who are toeing the edge of financial solvency, any infusion of money can be a blessing. Whether expected or unexpected, having new resources to draw on in order to pay credit card bills, mortgage payments and medical expenses can be a giant relief.