Bankruptcy lawyer Steve Westerfield has 32 years of experience in legal practice as a sole practitioner, currently based in Hot Springs, AR. He has represented clients before 40 of the 75 Circuit Courts located within the State of Arkansas, before the Federal District Court in both the Eastern and Western District of Arkansas, and before the Federal Bankruptcy Court in both the Eastern and Western District of Arkansas. Here, he answers the main questions about bankruptcy in his state.
Can I Keep Credit Cards After Bankruptcy in Arkansas?
People who are considering bankruptcy often want to know if they will be able to keep their credit cards after they file. If you have a credit card or cards upon which there is no balance, then you do not have to list that card when you file. However, you should also stop using your card as soon as you realize that you’re likely to file. If credit cards are used within 90 days of a bankruptcy filing, the credit card companies will review the charges in an effort to determine whether credit card abuse has occurred.
Will Bankruptcy Stop an Eviction or “Unlawful Detainer” Action?
Bankruptcy will postpone an eviction or unlawful detainer action provided that an Order of Possession has not yet been entered. In a case of home foreclosure, a Chapter 13 bankruptcy will prevent the foreclosure and give the debtor an opportunity to eventually get current on a mortgage obligation.
Most Common Reasons to File for Chapter 7 Bankruptcy in Arkansas
Most bankruptcies are caused by unexpected major medical bills, and/or loss of employment. Bankruptcies are also caused by excessive credit card debt, or because of divorce or personal tragedy. Most people try very hard to avoid bankruptcy and are very upset at the prospect of having to file. But individuals and families are often not in control of the factors that lead to financial hardships. If you are in debt, bankruptcy could help you get a fresh start.
What Items are Non-Dischargeable after Filing Bankruptcy?
If you are considering filing bankruptcy, it’s important to get the right legal advice and learn which debts are dischargeable, and which debts are not. Certain debts and obligations cannot be discharged in a Chapter 7 bankruptcy, and your bankruptcy lawyer will advise you of this from the very beginning. It’s important to keep in mind that all debts that you did not list on your bankruptcy petition will not be discharged.
Does Bankruptcy Affect My Obligations If I Am a Co-Signer on a Debt?
Bankruptcy will release a co-signer from obligation on a promissory note or contract. However, the other signer or co-borrower will then become solely responsible for the debt. The bankruptcy of one borrow will not protect the other borrower or co-signer. In circumstances where one spouse has all or almost all of the unsecured debt in his name and the remaining spouse has no or very little unsecured debt in her name, it is often advisable that only the individual who has all or most of the household debt file bankruptcy.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
