Usually discharged
- Credit card balances
- Medical bills
- Personal loans
- Most judgments from unsecured debt
- Deficiency balances after a repossession
Chapter 7 bankruptcy
The debt goes away and you keep your life.
Chapter 7 clears most unsecured debt in as little as three to four months. Arkansas exemptions are written so that most people keep their home, their car and the things they actually need.
Free consultation · No obligation · Five Central Arkansas offices
Who this is for
When there is no version of the math that works
You have run the numbers more than once. Even with nothing going wrong for a year, the minimum payments do not touch the balances, and something always goes wrong. That is not a budgeting problem, it is a debt load your income cannot carry.
Chapter 7 is the answer built for exactly that. Rather than restructuring what you owe, it discharges most of it, and the process is measured in months rather than years.
The fear that stops most people from asking about it is losing the house or the car. In practice, that is not usually what happens.
The shape of it
What Chapter 7 clears, and what it does not
Knowing the difference before you file is the whole point of the consultation.
Usually survives
- Child support and alimony
- Most student loans
- Recent tax debt
- Court fines and restitution
- Secured debt, if you keep the property
Why us
Exemptions are where the experience shows
What you keep in a Chapter 7 comes down to how your property is claimed as exempt. Lonnie Grimes and our bankruptcy team have done this thousands of times across Central Arkansas, and that work happens before the case is filed, not after.
We will also tell you if Chapter 7 is the wrong fit. If your income is steady and you are behind on a mortgage, Chapter 13 usually protects you better.
- Automatic stay stops garnishment on day one
- Typical discharge in three to four months
- Most people keep the house, the car and retirement accounts
- We attend the 341 Meeting of Creditors with you
What happens next
Filing, step by step
Free consultation
We go through your debts, income and property and confirm whether Chapter 7 is the right chapter for you.
We file, the stay begins
Our team prepares the paperwork and the filing. From that moment, garnishments and collection calls have to stop.
Discharge
We attend the 341 Meeting of Creditors with you, and the discharge typically follows within three to four months of filing.
Common questions
Chapter 7 questions
What debt does Chapter 7 actually wipe out?
Most unsecured debt. Credit cards, medical bills and personal loans are the bulk of what people come to us with. Some obligations survive a discharge, including most student loans, recent taxes, child support and alimony, so we go through your specific list with you before you file.
Will I lose my house or my car?
Most people keep both. Arkansas exemptions are written to protect a primary residence and a vehicle. Whether that covers you depends on how much equity you have and whether you are current on the payments, which is exactly what the free consultation is for.
How long does it take?
Chapter 7 cases typically discharge in three to four months from filing. The automatic stay, which stops garnishments and collection calls, starts on day one rather than at the end.
Do I qualify for Chapter 7?
It depends mostly on your income measured against Arkansas household figures, and on what you own. If your income is too high, Chapter 13 is usually the alternative rather than a dead end. We work that out before anything gets filed.
How much does it cost?
The court filing fee is currently $338. Attorney fees vary with how complicated the case is, and we explain every cost up front at the free consultation.
Find out what you would keep
Call us for a free consultation. We will go through your debts and your property and tell you plainly whether Chapter 7 is your best route.
Monday to Friday, 8:30 AM to 5:00 PM