Bankruptcy Blog

Unfortunately, not all personal debt will be discharged by filing Chapter 7 or Chapter 13 Bankruptcy. The types of debts which are not discharged are outlined at the federal level in the United States federal bankruptcy code. If you live in the state of Arkansas, the following debts will not be discharged.

• Federal, state and local taxes. May be subject to specific time rules.
• Spousal Support/Alimony
• Child Support Payments
• Most Student Loans
• Mortgage Liens
• Certain types of purchases for luxury items within 90 days of filing
• Secure Debt
• Penalties and fines by government agencies
• Fraud committed in a fiduciary role including larceny and embezzlement
• Punitive damages assessed for “willful and malicious acts”
• Debts not outlined on the schedule and forms filed with the Bankruptcy Court
• Drunk Driving fines
• Certain cash advances or purchases for luxury items with in a certain time frame.

If you have debt that is not discharged by filing bankruptcy, it is legal for creditors to continue their efforts to collect the debt payments. This is a general list of non-dischargeable debt. An Arkansas Bankruptcy Attorney should be consulted for information about your specific type of debt and whether or not your debt is dischargeable.

If you do not pass the means test or if you have assets that you would like to keep, Chapter 13 Bankruptcy may be your best option. Chapter 13 Bankruptcy does not immediately discharge debt but will require you to pay at least a part or all of your debt to your creditors over a three to five year repayment period.

If you are considering filing Chapter 13 Bankruptcy in Arkansas, an Arkansas Bankruptcy Lawyer will work with you to file your bankruptcy petition, and help you develop your three to five year bankruptcy repayment schedule.

Certain assets are considered exempt from the bankruptcy process. Federal bankruptcy laws have outlined what assets are exempt, but some states have created their own list of exempt assets. Depending on the state where you live, you may be able to choose between the federal list and the state list or you may have to choose the state exemption list.

If you are filing bankruptcy in Arkansas, you may choose either the Federal Exemption List or the Arkansas State Exemption list. There may be restrictions to this rule if you have not lived in Arkansas for the two year period prior to filing personal bankruptcy.

In 2005, new bankruptcy laws were passed by the United States Congress to encourage more individuals to pay off all or a percentage of their personal debt by filing Chapter 13 Bankruptcy. As a result, many individuals no longer qualify to file Chapter 7 Bankruptcy.

Chapter 7 Bankruptcy is a liquidation bankruptcy where a debtor (individual, corporation, couple or partnership) can have most of their unsecured debt obligations discharged. Under Chapter 7 Bankruptcy, a trustee will be assigned to your bankruptcy case and the trustee will sell your non-exempt assets and distribute the proceeds to your creditors.

Chapter 7 Bankruptcy is the most common, cheapest and easiest way to discharge debt. The main cost will be to hire a bankruptcy attorney and pay court costs. Under the new bankruptcy laws, however, there are new requirements which must be met to qualify to file Chapter 7 Bankruptcy in Arkansas. In addition to an income test, you also will have to complete a credit counseling course and a financial management course.

The first step in the process is to determine if your annual income is below the current Arkansas state median income for a family of your size. If it is below the median income level, you will qualify to file Chapter 7 Bankruptcy. If your income is above the Arkansas state median income there is additional “means test”, which an Arkansas Bankruptcy Attorney can complete for you to determine if you are eligible to file Chapter 7 Bankruptcy.

In general, the means test will analyze your net monthly income, which is your current monthly income minus deductions for mortgage payments, certain school costs, taxes, child support and car payments, after these deductions are made the test will determine if you are able to pay at least $6000 or $100 each month to your creditors over the next five years. If you are able to make these payments, you will most likely have to file Chapter 13 Bankruptcy.

State median data is provided by the United States Trustee Program for each state and is updated periodically. For the state of Arkansas, as of March 15, 2009, the median income for a single wage earner was $33,623 and for a family of two it was $45,435. For a family of three it was $48,909 and for a family of four it was $56,822.

Information in this section is general and should not be taken as legal advice. If you are considering filing bankruptcy in the state of Arkansas it is important to consult an Arkansas Bankruptcy Attorney.

Almost five individuals out of one thousand have had to file bankruptcy in Arkansas in 2009. To date, there have been almost four thousand bankruptcy filings in Arkansas. If you live in the state of Arkansas you know that home foreclosures are on the rise and the economic climate is dismal. Filing bankruptcy may be your best financial option if you are facing:

• Harassing creditor phone calls
• Sky rocketing credit card debt and penalties
• Home foreclosure
• Repossessions
• Wage Garnishments
• Loss of job
• Unexpected Medical crises

If you live in the state of Arkansas, it is important to talk to an Arkansas Bankruptcy Attorney prior to filing personal bankruptcy. An Arkansas Bankruptcy Lawyer can analyze your assets and debts, answer your bankruptcy questions and determine if you are eligible to file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.

Bankruptcy laws have been created by the federal government to give individuals a legal option to discharge all or a portion of their unsecured debt and make a fresh financial start. Under federal bankruptcy law you may be able to declare personal bankruptcy if you are unable to pay your creditors. Filing bankruptcy in Arkansas is an important financial decision and should not be considered with out first contacting an Arkansas bankruptcy lawyer.

Filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy will not discharge all debt. Federal bankruptcy law outlines non-dischargeable debt. In the state of New Jersey, non-dischargeable debt will be the same as in other states. If you are considering filing bankruptcy in New Jersey, it is important to discuss what debt you have that may not be dischargeable. Creditors can continue legal debt collections efforts if you fail to pay your non-dischargeable debt obligations.

In the state of New Jersey the following debt will not be discharged:

• Federal, state and local taxes. May be subject to specific time rules.
• Spousal Support/Alimony
• Child Support Payments
• Most Student Loans
• Mortgage Liens
• Certain types of purchases for luxury items within 90 days of filing
• Secure Debt
• Penalties and fines by government agencies
• Fraud committed in a fiduciary role including larceny and embezzlement
• Punitive damages assessed for “willful and malicious acts”
• Debts not outlined on the schedule and forms filed with the Bankruptcy Court
• Drunk Driving fines
• Certain cash advances or purchases for luxury items with in a certain time frame.

Many people will not qualify to file Chapter 7 Bankruptcy, or they will have assets they would like to keep. Filing Chapter 13 Bankruptcy is another option. Chapter 13 Bankruptcy is not a liquidation bankruptcy and it will not immediately discharge your debt, but it can stop a home foreclosure, end a repossession or eliminate wage garnishments.

Filing Chapter 13 Bankruptcy will allow you to develop a bankruptcy repayment plan. Scheduled debt repayment will be made over a three to five year period. Often more favorable terms or scheduling can be implemented with the plan. If you decide to file Chapter 13 Bankruptcy a trustee will be assigned to work with you and your creditors and all debt repayment will be done under the supervision of the bankruptcy court. It is illegal for creditors to continue to contact you (there may exceptions for non-dischargeable debt collection efforts).

If you are considering filing Chapter 13 Bankruptcy, contact a New Jersey Bankruptcy Attorney who can answer your questions, review your financial information, and determine what assets may be exempt from the bankruptcy process.

Certain assets will be considered exempt under federal bankruptcy law. Exempt assets will not be part of the bankruptcy process. Exemptions have been created to allow you to maintain certain assets at the completion of bankruptcy. Exemptions are outlined in federal bankruptcy laws, but many states have developed their own list of exempt assets. Depending on where you reside, you may be able to choose between the state exemption list and the federal exemption list. In the state of New Jersey, you may choose between the federal or New Jersey State Exemption List.

The most common type of bankruptcy is Chapter 7 Bankruptcy. Under Chapter 7 Bankruptcy, a trustee is appointed to sell your assets and use the proceeds to pay your priority creditors. Creditors are paid in the order outlined in the federal bankruptcy code. Chapter 7 Bankruptcy is considered a liquidation, which means most of your non-exempt assets will be liquidated or sold. Chapter 7 Bankruptcy is quick, easy and inexpensive.

Since 2005, and the passage of the Bankruptcy Prevention and Consumer Protection Act (BAPCA), qualifying to file Chapter 7 Bankruptcy has become more difficult. The BAPCA requires credit counseling prior to filing bankruptcy, the completion of a financial management course before the discharge of your debt and an income test to determine if you can file Chapter 7 Bankruptcy. The BAPCA was passed to make it more difficult to immediately discharge your debt and force more individuals to repay all or a portion of their debt by filing Chapter 13 Bankruptcy. To determine if you are eligible to file for Chapter 7 Bankruptcy, you must now pass an income test.

The first step in the income test is to analyze your annual income to determine if it is below the state median income for a family of similar size. If you live in New Jersey and your median income is below other New Jersey residents, in most cases you can file Chapter 7 Bankruptcy. If your income is above the New Jersey state median income, additional “means testing” is required.

The means test will determine the amount of disposable income you have available to pay your unsecured debt. The test will take your income over the last six months and subtract certain expenses such as your mortgage payment, car payment, tuition costs (up to $1650), taxes owed, and child support. If your disposable income allows you to pay at least $6,000 (100/month) to your creditors in the next 60 months, you will probably have to file Chapter 13 Bankruptcy. If you fail this test, but you can still pay up to 25% of your disposable income toward unsecured debt in the next 60 months, you will probably have to file Chapter 13 Bankruptcy.

New Jersey State median data is provided by the United States Trustee Program for each state and is updated periodically. For the state of New Jersey, as of March 15, 2009, the median income for a single wage earner was $57,120 and for a family of two it was $69,853. For a family of three it was $85,397 and for a family of four it was $103,034.

Means testing can be complicated. This information should be used for general purposes and should not be construed as legal advice. It is important to contact a New Jersey Bankruptcy Attorney to complete means testing.

If you are considering filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in New Jersey, it is important to contact a New Jersey Bankruptcy Attorney. Bankruptcy is a legal process which may allow you to:

• Stop creditor calls
• Stop a home foreclosure
• Discharge most of your unsecured debt
• Eliminate medical bills
• Eliminate credit card debt
• Stop wage garnishments

Over one million individuals last year who faced a variety of issues such as job loss, unexpected death, business failure, divorce and separation were able to get financial relief by filing bankruptcy.

Filing Chapter 7 Bankruptcy will allow you to discharge most of your unsecured debt with in four to six months. Filing Chapter 13 Bankruptcy will allow you to repay all or most of your debt under a three to five year bankruptcy repayment plan.

If you are considering bankruptcy, contact a New Jersey Bankruptcy Attorney for more information. Filing bankruptcy can have a negative long term impact your credit score and your ability to get personal loans. It is important to discuss your decision with a New Jersey Bankruptcy Lawyer to determine if it is the best option for you.

Certain types of debt are considered non-dischargeable and will not be discharged or eliminated by filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Federal bankruptcy law outlines all non-dischargeable debt for all states. Nebraska non-dischargeable debt will be the same as all other states. If you do not continue debt repayment for non-dischargeable debt, collection efforts can continue. All the debts below are non-dischargeable in the state of Nebraska:

• Federal, state and local taxes. May be subject to specific time rules.
• Spousal Support/Alimony
• Child Support Payments
• Most Student Loans
• Mortgage Liens
• Certain types of purchases for luxury items within 90 days of filing
• Secure Debt
• Penalties and fines by government agencies
• Fraud committed in a fiduciary role including larceny and embezzlement
• Punitive damages assessed for “willful and malicious acts”
• Debts not outlined on the schedule and forms filed with the Bankruptcy Court
• Drunk Driving fines
• Certain cash advances or purchases for luxury items with in a certain time frame.

Many people will not qualify to file Chapter 7 Bankruptcy and others have assets that they do not want to liquidate. Filing Chapter 13 Bankruptcy may be another option.. Chapter 13 Bankruptcy will not immediately discharge your debt, but will instead, allow you to create a 3 to 5 year bankruptcy plan to repay all or a portion of your personal debt. Many times the debt repayment schedule may have more favorable debt repayment options. At the end of the bankruptcy repayment schedule, if you have made all the necessary payments, your qualifying debt will be discharged.

The first step in Chapter 13 Bankruptcy is to contact a Nebraska Bankruptcy Attorney. A bankruptcy attorney will help you file your bankruptcy petition and schedules, create the bankruptcy repayment plan and appear in bankruptcy court.

Certain assets will be exempt from the bankruptcy process. The federal exemption list was created to allow individuals to maintain enough assets that can start over after filing bankruptcy. Federal bankruptcy law will outline the bankruptcy exemptions, but certain states have also created their own list of exemptions. Depending on the state where you live, you may have the option to choose between the federal exemption list and the state exemption list. In certain states you will only be able to use the state exemption list. In the state of Nebraska you are not allowed to use the federal exemption list and must choose the State of Nebraska Bankruptcy Exemptions.