One fallacy about bankruptcy is that the debtor will never get credit again. That's not true for the vast majority of people who have successfully completed a consumer bankruptcy. Whether you file in Arkansas or another federal bankruptcy district, there is a good likelihood that you'll be able to restore credit fairly soon after the case is discharged.
The Chapter 7, or straight bankruptcy, is used by consumers in Arkansas to eliminate credit cards, medical bills, and other unsecured debts. As previously discussed, it’s possible for an individual filer, or husband-and-wife joint filers, to retain their residence in a Chapter 7. In some circumstances, the debtor can keep paying on a current house loan and reaffirm the loan, while discharging unsecured debt. The mortgage and the debtor’s ownership of the home, will pass through the Chapter 7 basically untouched. However, if the home loan is in arrears or default, or even if a foreclosure sale was pending at the time of filing, the debtors can file a Chapter 13 bankruptcy to try and bring the loan current and keep the house.
For those in Arkansas who may be contemplating the possibility of bankruptcy as a way to quickly eliminate large amounts of unsecured debt, it’s wise to get an understanding of how the procedure works. Those who go forward well-informed will be more relaxed and positive by knowing the meaning and impact of the various steps. Generally speaking, a personal bankruptcy for those with large amounts of unsecured consumer debt, such as credit cards, unsecured personal loans, and medical bills, is the strongest, quickest and most effective debt relief remedy available.
A discharge in a consumer bankruptcy in Arkansas and all other federal bankruptcy districts comes after the trustee has conducted a meeting, thoroughly reviewed all matters, and concluded that all laws and procedures have been followed. The Court then orders a full discharge of the debtor's unsecured debts. This goes relatively quickly in a Chapter 7 bankruptcy, which is the most common form of consumer filing.
One of the great contributors to a person falling into serious debt is the cost associated with medical care. It is very expensive nowadays to receive medical care, even if you have insurance. To that point, 78 percent of people who file for bankruptcy as a result of medical debt also have health insurance. Just because you are insured doesn't mean your medical care won't cost a hefty sum.
There have been plenty of jokes made about the many different types of "chapters" there are when it comes to bankruptcy. However, the variety in bankruptcy allows for people and businesses to maneuver out of the many different financial situations they can find themselves in. Two of the most common forms of personal bankruptcy are Chapter 7 and Chapter 13.