Arkansas Bankruptcy

Bankruptcy provides a fresh start for debtors because it protects consumers against lawsuit from creditors. Bankruptcy protection starts after you've been through the mandatory pre-bankruptcy counseling and filed your bankruptcy. Until that time, collectors can continue to try to collect on your credit card debt, and foreclosure proceedings can continue.

Cost of Chapter 7 & Chapter 13 Bankruptcy

According to The Madden Law Firm, the cost to file for chapter 7 is $200, which may be waived for people who receive public assistance or live below the poverty level. In a chapter 13, you file the same forms as you do for chapter 7 plus a proposed repayment plan, in which you describe how you intend to repay your debts over the next three, or in some cases five, years. The cost to file is $185, and it cannot be waived.

Avoiding Bankruptcy

Arkansas chapter 7 bankruptcy laws and Arkansas chapter 13 bankruptcy laws have changed the landscape of filing for bankruptcy. It is now more complicated and expensive to file for chapter 7 and chapter 13 bankruptcy. But, there are two aggressive, but effective ways of avoiding bankruptcy: loan modification and debt settlement. A debt settlement involves getting your creditors to agree to take less than what you owe as full payment for the debt. A loan modification involves negotiating with your mortgage lender for rates and terms that allow you to stay in the loan.