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Personal Bankruptcy Archives

Dealing with the meeting of creditors

Whether you file for Chapter 7 or Chapter 13 bankruptcy, you'll likely face the meeting of creditors, which is also called the 341 meeting. For many people, this sounds like a frightening meeting where creditors will be there to bully you; it sounds especially disheartening if you've turned to bankruptcy in part to stop creditor aggression and harassment. The truth is, the 341 meeting is usually short and to the point with little to be anxious about.

Learn how bankruptcy can help you reclaim your finances

Filing for bankruptcy isn't an easy decision for many people. You probably want to fulfill your financial obligations, but you just can't see a way to make that happen. For people in your shoes, bankruptcy is an option that often isn't explored until every other possible avenue for taking care of the bills has been tried.

Bankruptcy filers must raise legal fees prior to starting a case

The legal fee in a Chapter 7 bankruptcy can vary widely depending on the complexity of the case. Fees have risen steadily since the 2005 overhaul of the bankruptcy laws, which impacted Arkansas and the entire country. Those laws increased considerably the amount of labor that the attorneys and their staffs had to put into a bankruptcy case.

High debts, scarce income may point to bankruptcy remedy

How can an individual or married couple best determine if bankruptcy is the right solution to deal with an unmanageable debt load? Frankly, the very best way is to make an appointment to discuss the facts with an experienced consumer bankruptcy attorney.  For those here in Arkansas or those located elsewhere who cannot do that immediately, there are a few things to look at.

Consider bankruptcy when debt relief needs are substantial

Even after the slow march back from a devastating recession, the average American is again using credit like there is no tomorrow. In some cases, the economic tomorrow is beginning to look bleak already. Sadly, it is not just excessive credit card spending that is triggering the sight of an impending crisis and a burgeoning need for debt relief both in Arkansas and throughout the nation.

Bankruptcy discharge of other debt may ease student loan burden

A medical student who is a popular blogger has revealed how she has paid off large amounts of student loan debts. It involves paying them off through regular payments of funds obtained through very low interest rate credit cards. The ability to do that applies in Arkansas and elsewhere, but can one later file bankruptcy to discharge the credit card debt that may accrue in times of an unexpected emergency?

For some persons, bankruptcy may ease a student loan crunch

Student loan debt continues to be a serious economic problem in Arkansas and in the United States. Outstanding student loan debt reached a record $1.35 trillion in 2016, which was an increase from the preceding year. About 10 million people are in default at this time, and that does not include those who are struggling with private student loans. Relief of student loans through bankruptcy continues to be problematic, but a lessening of the rules may be necessary to avert a major economic downturn.

Bankruptcy filings are higher in some states, including Arkansas

Although bankruptcy filings were at a low percentage of the population last year, the signs of heavy credit card use, increasing medical bills and rising prices portend an increase next year. Interestingly, it is also true that bankruptcy filings in certain states and geographical locations were substantially higher than the national average. According to surveys by the American Bankruptcy Institute and Nerd Wallet, six of the 10 states with considerably higher numbers of filed bankruptcies are in the south, with Arkansas having the ninth highest number of new filings for 2015.               

Debt management plan can be inferior to filing bankruptcy

Nonprofit consumer credit counselors play a useful part in the debt relief industry in Arkansas and nationwide. They are generally honest players in a sector that includes fraud, deception and greedy scams meant to benefit a so-called debt relief company and not the consumer debtor. Despite their usefulness, the law does not yet require consumer credit counselors to advise clients on the comparative benefits of filing a bankruptcy. That is a serious deficiency because often the best option for people in serious, overwhelming debt is to erase the debt right away in bankruptcy and move on without lingering in debt for many more years.