Frequently Asked Questions

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Is there is a minimum amount of debt you have to have before you can file bankruptcy?
No. There is no minimum.
 
Will I lose all of my property?
No. Certain personal and real properties are classified as exempt, meaning that you can keep it, even after receiving a debt discharge in bankruptcy. Under Arkansas law, you can claim several thousand dollars in exemptions which allows most people to keep all their property. If you file Chapter 13 you can keep all of your property regardless of exemptions so long as the unsecured creditors get paid as much as they would in a Chapter 7.
 
Will I ever get credit again?
Yes, you can get credit again. The bankruptcy laws are designed to provide you with a fresh financial start. Many of our bankruptcy clients that have been granted a discharge in bankruptcy have been able to obtain new credit in as little as 6-12 months.
 
Will I be able to purchase a home after I file for bankruptcy?
Some lending institutions offer mortgage financing to individuals who have filed for bankruptcy within 1-2 years after receiving a discharge in bankruptcy. Filing bankruptcy can actually be helpful when purchasing a home in that it improves your debt to income ratio and takes care of your old outstanding debts that many mortgage companies might otherwise require you to clean up before lending.
 
Will I lose my job if I file bankruptcy?
No. It is a violation of Federal Labor laws for an employer to discriminate against an existing employee because they filed for bankruptcy.
 
Can I ever file for bankruptcy again if I need to?
Yes. Chapter 7 can be filed every 8 years from a previous chapter 7 filing or 6 years from a prior chapter 13 which was discharged.  Chapter 13 can be filed 4 years from a prior Chapter 7 filing or 2 years from a prior Chapter 13 filing that was discharged.
 
Can I file bankruptcy without my spouse?
Yes. However your spouse will still be liable on any of the debts he or she is liable on now. In other words bankruptcy wipes out the obligation of the person filing, not the debt itself.
 
Will my bankruptcy affect my spouse's credit?
Generally no. When one spouse files for bankruptcy, as long as none of the debts scheduled by you are joint debts with your spouse, your spouse's credit is generally not affected.
 
Can I discharge personal income taxes in a bankruptcy?
Some personal income tax liabilities may be discharged in either a Chapter 7 or Chapter 13 reorganization proceeding. Generally taxes that are more than 3 years old can be discharged. However, the criteria for discharge is complex and should be reviewed by an experienced bankruptcy attorney.
 
Is the bankruptcy process long and difficult?
No. The typical Chapter 7 case takes approximately 3-4 months from the date that the petition is filed until the date that a discharge is issued by the Bankruptcy Court. The bankruptcy process, while complex and sometimes confusing to the average person, is a relatively straightforward process when you are working with an experienced bankruptcy attorney.
 
Will bankruptcy take care of child support debts?
Child support cannot be discharged in any bankruptcy action. Child support arrears can be reorganized in a Chapter 13 and that will allow you protection from collection on the arrears during the time you are in the Chapter 13. The ongoing child support obligation continues.
 
Does my divorce decree protect me from creditors that I once owed but my spouse was ordered to pay?
No. A divorce decree only determines the right of the two parties involved. If your ex-spouse does not make the payment on the debt, the creditor can come against you. Your divorce decree gives you the right to take legal action against your ex-spouse for non-compliance, but that is not binding on the creditor. That is why it is best to list all debts you owe in the bankruptcy including those addressed in your decree. Then you do not have to worry about this happening later on. 
 
Is it wrong to file bankruptcy?
If you are reading this now, you should be applauded. You are taking a positive step to regain control of your financial situation and plan for the future. You have acknowledged that a problem exists and you are taking action to address it. Life sometimes throws us curves that we never could have imagined. The bankruptcy laws have been designed to help people address their financial difficulties in an honest, straightforward manner.
 
Let Us Show You How We Can Help
If you need an experienced bankruptcy firm,  Contact us at the Harris Law Firm or call us at 501-372-6985 or set an appointment online