When debt becomes overwhelming, it’s easy to feel like your only options are drastic—losing your car, your home, or your hard-earned property. But for many Arkansans with a reliable income, Chapter 13 bankruptcy offers a more balanced solution. It doesn’t erase debt overnight like Chapter 7 might, but it gives you something even more powerful: a chance to restructure what you owe and keep what matters most.

A Practical Path for Those Who Want to Catch Up—Not Give Up

Chapter 13 is often described as a “wage earner’s plan” because it allows individuals with steady income to create a court-approved repayment strategy that spans three to five years. This plan consolidates your debts and allows you to:

• Avoid foreclosure by catching up on missed mortgage payments
• Prevent car repossession by reorganizing or reducing auto loan terms
• Stop wage garnishments, lawsuits, and collection actions
• Retain ownership of property, including your home, vehicle, and other assets

Best of all, you’re not handing your financial future over to a trustee or selling off everything you own. You stay in control—with the legal protections to help you breathe again.

A Tool for Strategic Debt Management

Chapter 13 isn’t just for people trying to save their homes. It’s also ideal for:

• Those who don’t qualify for Chapter 7 based on income
• People with non-dischargeable debts (like certain taxes or child support) who need time to pay
• Drivers with suspended licenses due to unpaid fines—many of whom can qualify to get their license reinstated after filing

Additionally, Chapter 13 allows you to pay only a portion of unsecured debts (like credit cards or medical bills), depending on your disposable income. That means you could end up paying pennies on the dollar—without risking everything you own.

Flexible, Custom, and Court-Supervised

When you file Chapter 13 in Arkansas, the court reviews your income, expenses, and debt structure to approve a plan that is fair and manageable. Your monthly payment is based on your budget, and you’ll make payments to a bankruptcy trustee who distributes them to your creditors. At the end of the plan, any remaining eligible unsecured debt may be discharged.

Unlike other debt solutions, your plan isn’t one-size-fits-all. It’s tailored to your situation—with the ability to adjust if your circumstances change.

Why Choose Chapter 13?

If you want to:

• Stop collections
• Avoid losing your home or car
• Repay debt in a way that fits your income
• Protect co-signers or joint account holders from creditor action
• Preserve access to essential services and licenses

…then Chapter 13 may be the best step forward.

Take the First Step Toward Stability

At Carl W. Hopkins, PA, we help individuals and families in Van Buren, Arkansas and beyond take control of their finances with a clear, customized approach to bankruptcy law. We’ll review your goals, explain your options, and work with you to build a plan that gives you lasting relief and a real path forward.