How to Find Bankruptcy Records in Arkansas
The United States Bankruptcy Court for the Eastern and Western Districts of Arkansas is the official bankruptcy court in Arkansas. The court is located in Little Rock and has a division in Fayetteville.
Bankruptcy is a set of federal laws and regulations that guide individuals and businesses that have more debt than they can pay. Bankruptcy cases are filed in bankruptcy courts. Other courts such as state courts do not hear bankruptcy charges. The basic intention of any bankruptcy court is to help people who due to various reasons can no longer pay their creditors, to liquidate their assets, thereby creating a repayment plan.
Bankruptcy laws are also in place to primarily protect financially troubled businesses. On the filing of bankruptcy by a business, the court provides the orderly distribution of debt to creditors while reorganizing and liquidating assets. All bankruptcy cases are dealt with by federal courts as they have exclusive jurisdiction over the same. This simply means that a bankruptcy case is not heard in a state court. Thus, technically, The United States Bankruptcy Court for Eastern and Western Districts of Arkansas is a federal court and not a state court.
Procedure to file for bankruptcy:
A bankruptcy case starts when an individual files a petition at the State of Arkansas bankruptcy court. The petitioner can be an individual, a corporation or any other entity. Once the petition is filed, other documents required by the court would include statements listing assets, a list of all liabilities, income statements, a list of all creditors and how much the petitioner owes them.
As soon as the petition is officially filed, all debt collection action has to cease against the debtor or the debtor’s property. This also effectively prevents creditors from filing lawsuits against the debtor, making phone calls or demanding debt payment.
A bankruptcy petition can, therefore, help the debtor in mainly two ways.
- The bankruptcy case allows the debtor some much needed time to reorganize and establish a plan to repay creditors.
- In other cases, it allows a debtor time to liquidate his or her property in order to pay the creditors what is owed.
Filing information for the State of Arkansas:
There are different bankruptcy filing avenues in the State of Arkansas and each option has to be understood well before choosing anyone. Some of them are:
- Chapter 7 Individual Filing Requirement
- Chapter 7 Non-Individual Filing
- Chapter 11 Individual Filing
- Chapter 11 Non-Individual Filing
- Chapter 13 Individual Filing
The state of Arkansas bankruptcy court provides Credit Counselors to debtors. The main role of a counselor is to help the debtor get all his debts under control. A credit counselor reviews and counsels an individual on his household budget, consumer debts, credit reports, and bankruptcy records, thereby helping the debtor improve his or her financial situation.
After the Credit Counselor, gets a good idea of an individual’s financial stress points, he would suggest a debt management plan which typically functions to lower interest rates, set up payment schedules and provide solutions to get out of debt sooner.
How to get the most out of a Credit Counselor:
A Credit Counselor can only be effective in what he does with the full corporation of the debtor. Thus it is mandatory that all financial information pertaining to assets, debts, income and monthly expenses should be transparently furnished to the counselor. The counselor studies the documents submitted in detail and draws a blueprint on means to get out of the debt.
A Credit Counselor’s service is not just for a bankruptcy filing petitioner. Counselors' services can be tapped into by any person who would like assistance with his financial and credit situations. For instance, a Credit Counselor can assist an individual manage his credit card by determining how much he can be spent on the card as compared to the available income.