Filing Chapter 13 in Arkansas

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If you are considering declaring chapter 13, Arkansas lawyers advise that you know the basics of this type of bankruptcy. Unlike chapter 7, it will take three to five years for your debts to be considered discharged, as you will have to pay at least a portion of your creditors during this time. Though you have to pay back your debts with this form of bankruptcy, the benefits are that your interest rates and totals are often lowered, and you are given at least three years to pay without the threat of late fees. Before you file for chapter 13, an Arkansas bankruptcy attorney should be contacted for a free consultation.

Reduce Your Debts

If your inability to pay your debts has caused you to rack up late fees and high interest rates, know that chapter 13 can get rid of the issue. Once you file for chapter 13, Arkansas based bankruptcy lawyers are prepared to negotiate with your creditors for a reduced interest rate and no late fees. In some cases, the principal amount can even be reduced, since creditors usually want at least some money from you as soon as possible.

Get More Time to Pay

In many cases, creditors start adding late fees once you are a few months late with the payment. Filing for chapter 13 bankruptcy can stop creditors from contacting you for payment, because your lawyer will apply for an automatic stay. Once the bankruptcy is set in motion, the court will decide whether your payment plan should last three years, five years or some amount of time in between. To make this decision, the Arkansas bankruptcy court will look at your income, expenses and the amount the creditors want you to pay.

If, on the other hand, you decide not to declare bankruptcy, you will not usually get three to five years to pay without interest and late fees accruing. If you want to pay the least amount possible and stop being contacted by creditors, you should look into chapter 13.

Get Started with a Lawyer

It is good to know that your debts are officially discharged once the payment plan ends. If you want to be sure that your debt is all cleared up at the end of the repayment period, you should get a lawyer in Arkansas. An attorney will work with you the entire time to ensure your payments are being received by the creditors once you give the money to the court-appointed trustee every month. If creditors are still contacting you for money at the end of the chapter 13, an Arkansas lawyer is good to have on your side to clear up the issue.