The Affordable Care Act imposes caps on medical expenses payable by consumers in Arkansas and elsewhere. However, indications are that the caps will not change the high rate of personal bankruptcy filings that are due to overwhelming medical debt. Knowledgeable observers predict that medical bills will continue to be a significant factor in over half of all bankruptcies filed.
As layoffs continue in different industries nationwide, including in Arkansas, the need for assistance and practical resolutions for consumer debtors continues. There are two consumer bankruptcy solutions available to those who were laid off or otherwise suffered a drop in income or an increase in unanticipated expenses. They are the Chapter 7 bankruptcy and the Chapter 13 bankruptcy.
A recent article in Forbes attempts to assess certain emotional challenges that a small business owner may experience during bankruptcy proceedings. The same principles apply as easily to Arkansas consumers filing to discharge non-business consumer debt. Some tips and common sense principles should serve a person or married couple well in approaching the challenge of successfully completing a bankruptcy filing and obtaining a final discharge of debts.
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.
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.