Filing Chapter 7 bankruptcy in Jonesboro may allow Jonesboro residents to dismiss all or part of their unsecured debt within four to six months. Filing Chapter 13 bankruptcy in Jonesboro does not immediately dismiss debt, but may allow Jonesboro filers to restructure their debt payments with a new three to five year repayment plan.
Current bankruptcy laws have made it more difficult to file bankruptcy in Jonesboro. Anyone considering bankruptcy should contact a Jonesboro bankruptcy lawyer for more information. Filing bankruptcy is an important decision and should not be done without careful consideration, but individuals who have suffered a financial crisis and have exhausted their other financial options may find filing bankruptcy in Jonesboro can give them a fresh financial start.
Filing Chapter 7 Bankruptcy in Jonesboro
Filing Chapter 7 bankruptcy in Jonesboro may discharge certain types of personal debt including credit card bills and medical expenses. A Jonesboro bankruptcy attorney can determine if a filer is eligible to file Chapter 7 bankruptcy by completing a means test. If the filer is eligible, the bankruptcy attorney can file the bankruptcy petition (information about the filer’s debts, creditors, and assets) in the appropriate bankruptcy court.
After reviewing the bankruptcy petition, the courts can schedule the 341 Creditor’s Meeting and assign a trustee to the bankruptcy case. The trustee is responsible for selling the filer’s non-exempt assets and taking the money and repaying the filer’s creditors. Creditors are paid in the priority order defined by bankruptcy laws. Most Chapter 7 bankruptcy cases can be completed within four to six months.
Filing Chapter 13 Bankruptcy in Jonesboro
Filing Chapter 13 bankruptcy does not immediately discharge a filer’s debts, but does allow them to recreate a bankruptcy repayment plan which lets the debt payments be made over a three to five period. Filing Chapter 13 bankruptcy also may allow the filer to stop home foreclosure, wage garnishments and property repossession. This may be beneficial for filers who have property they want to keep.
Only Jonesboro residents who have a dependable income can file Chapter 13 bankruptcy in Jonesboro. A filer’s also can not have unsecured debt exceeding $269,250 or secured debt exceeding $807,750.
Personal Debts Not Eliminated By Filing Personal Bankruptcy in Jonesboro
Federal bankruptcy laws determine the types of debt which can not be discharged by filing bankruptcy in Jonesboro. Dischargeable debt is the same for all states. The following personal debt can not be eliminated by filing bankruptcy in Jonesboro:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Jonesboro
- Fines owed to federal or California government agencies
- Debts generated from fraudulent activity
- Recent cash advances of $825 within 70 days of filing personal bankruptcy
