A bankruptcy filing in Arkansas or elsewhere does not necessarily foreclose the filer from obtaining business financing within a few years of the bankruptcy discharge. You can erase a large amount of debt in a bankruptcy and still be qualified for a small business loan under certain circumstances. Thus, if you keep a clear credit record after the bankruptcy and present a well-supported business plan, along with the existence of some collateral, a loan will have a fair likelihood of being approved.
Government records indicate that over a million people and businesses filed bankruptcies in 2013. A consumer filing in Arkansas and elsewhere entails an individual or a married couple entering a petition for relief with a federal bankruptcy court. They get rid of or reorganize primarily consumer debts in either a Chapter 7 or Chapter 13 filing. The interesting but perhaps little known aspect of a bankruptcy is that the filers can rebuild their credit standing fairly quickly after the bankruptcy is finalized.
When considering filing for personal bankruptcy, many Arkansas residents are concerned about how the move will impact their credit standing. This is understandable, as having a solid credit score is the key to attaining future lines of credit, favorable interest rates and the ability to purchase a new home or vehicle. However, the manner in which many consumers think about bankruptcy and credit may be flawed.
Sometimes, people with seemingly higher incomes and large assets file a personal bankruptcy. This may be due to a temporary financial crisis or a long-term buildup of debt that the individual eventually could not handle. Bankruptcy can be a useful remedy for lawyers, doctors, and others who need to wipe out certain dischargeable financial burdens in order to move on with their lives. These considerations apply in Arkansas as well throughout the country.
When a person's unmanageable debt load reaches a critical point, constant harassment, lawsuits, judgments and even executions are the natural order of things. Arkansas citizens suffering in that circular nightmare, or who may be getting close to it, may find themselves trying to choose between a debt consolidation remedy and filing a bankruptcy. Those are really the only two options that may stop the creditors' onslaught, other than winning the lottery big-time and paying everything off.
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.
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.
We have been focused on student debt recently, and with good reason. It's an important bankruptcy topic, let alone an important social topic. Today we will be continuing that discussion, albeit through a very bizarre and unexpected lens.
One of the prevailing reasons that many people are in debt is student debt. The loans that people took out in college to pay for myriad things -- including skyrocketing tuition, absurdly expensive books, and numerous other school supplies -- end up biting them later on in life.
When you accrue a lot of debt, debt collectors will do everything in their power -- and, sometimes, even things they aren't supposed to be in their power -- to get the money from you. They will call you and send you letters. They may even try contacting family members to learn of your whereabouts. All told, it can amount to a very stressful time for the person who is in debt.