Chapter 13 Bankruptcy

Little Rock Chapter 13 Bankruptcy Lawyers

Would You Like to Consolidate Your Debts?

If you are facing heavy debts due, for example, to divorce or a serious illness, filing Chapter 13 bankruptcy offers consumers an opportunity to restructure debts and create a repayment plan, usually between three to five years. If you file for Chapter 13 bankruptcy, you may be able to save your home from foreclosure, and reschedule debts with lower monthly payments.

If you fulfill the terms of the protection agreement and make all payments on time to the court-appointed trustee, your debts will be discharged or forgiven.

Filing for Chapter 13 bankruptcy is complex, involving many steps and many important decisions. For seasoned Chapter 13 bankruptcy counsel, call The Brad Hendricks Law Firm in Little Rock, Arkansas, at 501-588-0549 for a free initial consultation, or contact us online.

Debt Consolidation through Chapter 13 Bankruptcy

Like Chapter 7 bankruptcy, there are guidelines for qualifying. Unsecured debts must be less than $336,900, and secured debts less than $1,010,650. Chapter 13 bankruptcy is often used by small business owners for restructuring debt.

As soon as you file for Chapter 7 or Chapter 13 bankruptcy, the court orders an automatic stay. That means that your creditors cannot hound you for delinquent payments. You must continue to meet your child support and spousal maintenance obligations.

Debt Consolidation vs. Debt Liquidation

Chapter 13 bankruptcy, also known as a wage earner's plan or business bankruptcy, differs from Chapter 7 bankruptcy. Chapter 13 is a debt restructuring plan, while Chapter 7 is a debt liquidation plan. In Chapter 13 bankruptcy, you will probably be able to keep your house, your car, and other valuable property as long as you live up to the terms of your bankruptcy agreement. In Chapter 7 bankruptcy, all nonexempt assets will be sold, and the money distributed to your creditors.

Both are perfectly legal ways to make a fresh start. Contact The Brad Hendricks Law Firm for a free initial consultation. Seasoned bankruptcy attorney Lyndsey D. Dilks will be happy to explain the pros and cons of bankruptcy, and answer any questions you may have.

Before joining our law firm, Ms. Dilks clerked for U.S. Bankruptcy Court Chief Judge Audrey Evans. Representing clients in bankruptcy filings is Ms. Dilks' exclusive focus, and she is committed to providing clients a fresh financial start.