When debt becomes overwhelming and creditors won’t stop calling, Chapter 7 bankruptcy may offer the financial reset you need. If you’re a Van Buren resident struggling with credit card debt, medical bills, or personal loans, this guide will help you understand if Chapter 7 bankruptcy is the right solution for you.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals to discharge (eliminate) most types of unsecured debt. Common debts that can be wiped out through Chapter 7 include:

• Credit card balances
• Medical bills
• Payday loans
• Personal loans
• Repossession balances
• Utility bills

The moment you file for bankruptcy, the automatic stay takes effect—stopping all creditor harassment, wage garnishments, and lawsuits. In many cases, individuals can keep their home and car, as long as they’re current on payments and exemptions apply.

Do You Qualify for Chapter 7 Bankruptcy?

To prevent high earners from abusing the system, Chapter 7 requires passing a means test. This compares your income to the median income for households in Arkansas. If you fall below the threshold—or if your allowable expenses outweigh your income—you likely qualify.

You’ll also need to:

• Complete a credit counseling course from an approved agency
• Submit a detailed petition including assets, debts, income, and expenses
• Avoid any recent fraudulent activity or major asset transfers

Meeting with a skilled Van Buren bankruptcy attorney can help determine your eligibility and ensure all paperwork is filed correctly and on time.

What Debts Cannot Be Discharged?

While Chapter 7 can eliminate a wide range of unsecured debts, it won’t wipe out:

• Child support or alimony
• Most student loans
• Recent income tax debts
• Court-ordered fines or restitution

However, discharging your other debts may free up the income you need to catch up on these non-dischargeable obligations.

What Happens to Your Property?

A common concern with Chapter 7 is whether you’ll lose everything. Fortunately, bankruptcy laws allow you to keep “exempt” property, such as:

• A certain amount of home equity
• Necessary household goods and clothing
• Retirement accounts
• A vehicle (within value limits)

In most Arkansas cases, people do not lose their home or car. Your attorney will help you understand how exemptions apply to your unique situation.

Why You Need a Chapter 7 Bankruptcy Lawyer

Bankruptcy laws are complex—and even small errors can cause delays or denials. Working with an experienced attorney like Carl W. Hopkins, PA ensures:

• Accurate preparation of your bankruptcy petition
• Strategic use of exemptions to protect your property
• Professional communication with the bankruptcy trustee
• Confidence throughout the process

Our team has a strong record of helping Van Buren clients successfully eliminate debt and reclaim their financial freedom.

Take the First Step Toward a Fresh Start

If you’re tired of struggling under the weight of debt, it’s time to consider your legal options. Chapter 7 bankruptcy could offer the clean slate you need to move forward with confidence.