How long does a Chapter 13 personal bankruptcy take to complete?
Chapter 13 bankruptcies can last for about three to five years unless you pay the debts entirely before then. You can opt for a three-year Chapter 13 plan if your income is below a certain amount. On the other hand, if your income is above a certain amount, the process can take up to five years. However, most people prefer five years regardless of income because the payment is lower.
For example, if you want to keep your car and make the payments through Chapter 13, the monthly payments will be cheaper in a five-year plan.
What is Chapter 12 bankruptcy under Arkansas law?
You must be a farmer to qualify for Chapter 12 bankruptcy, which is a more generous version of Chapter 13 which Congress created to help family farmers survive.
How do I qualify for Chapter 12?
Chapter 12 bankruptcy code has certain qualifications, such as the percentage of income that comes from farming.
When a bankruptcy attorney meets with a client considering Chapter 12, they will review the client's income and decipher what percentage of it comes from farming. This helps us verify if the client qualifies as a family farmer.
What's the difference between Chapter 11 and Chapter 12?
Chapter 11 is for major debt problems. It is expensive - the court is filing fee alone is over a thousand dollars. Because of this, it may not be a viable option for the vast majority of people; it's mainly for big businesses.
Is Chapter 11 only for corporations?
No, individuals can file chapter 11. However, because it can be so costly, it may not be the best option unless the client has a massive amount of debt.
This article is general information about Arkansas law, not legal advice about your situation, and reading it does not create an attorney-client relationship. The law changes. Talk to a lawyer about your own facts before acting.