When you’ve slipped too deeply into debt, it can seem as though there’s no way out. Fortunately, a Chapter 7 bankruptcy provides a lifeline, allowing you to discharge most of the debts and get your financial life back on track. Below are answers to some of the most commonly asked questions about a Chapter 7 liquidation.

Your Chapter 7 Bankruptcy Questions Answered

Which debts can I eliminate?

Chapter 7 bankruptcy completely eliminates a broad range of unsecured debt, including credit cards, utility and medical bills, and even some back taxes. However, not every type of debt is eligible for discharge in a bankruptcy. After your case is completed, you’ll still be responsible for student loans, back child support, and some other unsecured obligations.

Won’t I lose all of my property?

In exchange for discharging the debt, the trustee does have the right to seize and sell some of your assets. However, the law allows you to exempt a wide range of property, and many petitioners can get the relief they need without losing anything at all. In Arkansas, you can choose to use the list of state exemptions or those provided in federal law, depending on what works best for you.

Will a Chapter 7 bankruptcy destroy my credit?

It’s true that filing for bankruptcy will cause a drop in your credit score, but it may not be as bad as continuously missed payments and delinquent accounts. In fact, bankruptcy gives you the chance to start rebuilding your credit right away instead of falling deeper in debt.

Do I need to hire an attorney?

Filing for bankruptcy can be extremely complex, so speak to an attorney before filing your petition. They can ensure that all of the eligible debts are included, all the paperwork is submitted correctly, and you get every exemption you’re entitled to.

If you’re considering filing for bankruptcy, turn to the Bueker Law Firm, a legal team in Jefferson, AR, with the experience and dedication to help you get the debt relief you need. Because they focus exclusively on bankruptcy law, their attorneys provide detailed legal solutions tailored to your specific circumstances. Visit their website or call (870) 673-1313 to schedule your initial consultation, and follow their Facebook for more legal tips and financial advice.