Common Types of Bankruptcy
The most common types of bankruptcy that Arkansas residents use are Chapter 7 and Chapter 13. Both give you an opportunity for a financial reset, but the process and outcomes are different.
When many people hear the word “bankruptcy,” they think of Chapter 7 bankruptcy. This option provides a fresh start through liquidating certain assets and wiping out many general debts. A common misconception is that you will automatically lose your home and car if you file Chapter 7. That isn’t always the case. We have helped clients protect homes, vehicles, and personal belongings while seeking relief through Chapter 7 bankruptcy in Arkansas.
Our attorneys explain the Arkansas-specific exemptions that could let you keep your primary residence and essential property. State law gives people several tools to protect valued assets, including unique homestead exemptions. We review your options at the beginning so you understand what you can keep and how local rules apply to your case. With offices serving communities statewide, we make sure you always have local guidance when you need it.
The other highly effective and common option is Chapter 13 bankruptcy. When you file for relief under Chapter 13, you design a repayment plan that can let you resolve debts more affordably. Your debt is reorganized and consolidated into a manageable payment plan. At Watton Law Group, we work closely with clients to ensure each plan fits your budget and aligns with Arkansas law.
Chapter 13 provides protection from creditors while you create a plan based on your income and basic living expenses, following standards set by U.S. Bankruptcy Courts in Arkansas. Our attorneys help you gather the proper proof of income and develop a plan that satisfies state requirements and works for your situation. This process typically lasts three to five years and can help you keep valued assets while resolving unsecured debts.
The Experienced Attorney Team You Need
No matter what caused your financial hardship, you deserve a fresh start. Watton Law Group’s Arkansas bankruptcy lawyers have the background needed to guide you through a difficult time. Bankruptcy does not have to feel overwhelming or stressful. Instead, the process helps you regain confidence and control over your future.
Our team brings decades of experience representing clients in Eastern and Western District courts throughout Arkansas. The attorneys at Arkansas Office have received recognition from Best Lawyers in America and Super Lawyers, reflecting our long-standing commitment to the legal and local communities. We dedicate ourselves to walking you through each phase, from pre-filing credit counseling to final discharge, so you always know the next step.
If heavy debts weigh on you, reach out to the attorneys at Watton Law Group for help. We offer free consultations to all prospective clients so you can explore your options in a no-pressure, confidential meeting. Our team will guide you as you make decisions about your best path forward.
What to Expect During the Arkansas Bankruptcy Filing Process
When you seek relief, the bankruptcy process in Arkansas starts with a review of your financial circumstances and a conversation about your goals. Our attorneys support you from the initial consultation to the final discharge. We explain filing requirements for Eastern and Western District courts, review critical deadlines, and guide you through required credit counseling. With our support, you can prepare your documentation and move forward at every stage. We approach the process step by step, making decisions clear and addressing Arkansas's unique procedures.
Every Arkansas bankruptcy case begins with a detailed list of your debts, assets, and income. We then review all available exemptions and help you decide which chapter may fit your scenario—whether liquidation under Chapter 7 or a repayment plan under Chapter 13. Our attorneys stay available to answer your questions and keep you updated on progress, including hearings with local trustees or the bankruptcy court. Throughout, we focus on keeping you informed and supported until your case concludes.
Frequently Asked Questions
Will bankruptcy affect my ability to keep my home in Arkansas?
Arkansas law allows many people to use state or federal exemptions to protect equity in their primary residence. Our attorneys will review your assets and help you understand how exemptions could apply to your situation and what steps are available to help you keep your home.
How long does bankruptcy stay on my credit report?
A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while a Chapter 13 case generally appears for 7 years from the filing date. Over time, you may begin to rebuild your credit by establishing positive financial habits after your bankruptcy is discharged.
What is the difference between Chapter 7 & Chapter 13 bankruptcy?
Chapter 7 bankruptcy involves the liquidation of non-exempt property to pay qualifying debts, often concluding in a few months. Chapter 13 establishes a payment plan over three to five years while allowing you to keep certain assets. Both options provide legal paths to financial relief based on your unique situation.
Contact our Arkansas bankruptcy lawyer by calling (501) 365-8099 today for your free, confidential consultation.
