Bankruptcies can be extremely complicated. Every individual and every business is financially unique, so no two bankruptcies are alike. When complications arise, you will need to have an attorney who specializes in bankruptcy law working to protect your interests. These are just a few of the areas where complications may arise. Dilks Law Firm, complicated bankruptcy issues attorney in Little Rock has experience in dealing with all types of complicated bankruptcy matters. Call today to schedule your free consultation to discuss your matter.
For individuals, the quickest way to eliminate debt is to have it discharged in a Chapter 7 bankruptcy, and this is the first choice of many debtors facing financial difficulties. However, in 2005, the federal bankruptcy code was amended to include a “means test” for anyone whose income is above the state’s median income.
The means test provides an analysis of the applicant’s debt to income ratio to determine if debts could be paid over time and if the petitioner might be abusing the right to file Chapter 7. Sometimes the findings of the means test can be rebutted by showing “special circumstances,” which is often difficult and will nearly always require the assistance of a good Little Rock complicated bankruptcy issues attorney.
Lyndsey Dilks is one of the few attorneys in the state who will take on this matter and work with you personally to determine whether you qualify for a Chapter 7 discharge. It can be complicated, so you need an attorney who has done it so often that it seems simple.
Certain types of debt cannot ordinarily be eliminated in a bankruptcy:
However, there are certain limited situations where the law does, in fact, allow you to discharge these debts. Again, an inexperienced bankruptcy attorney or a bankruptcy attorney who only files simple cases will not recognize and be able to assist you in debt negotiation. Call someone with experience who will work one-on-one with you to completely resolve all of your financial hardships.
After you submit your documents in a Chapter 7, a 341 meeting of creditors is held, and each creditor has 60 days to decide if they are willing to discharge the debt owed them. If all creditors agree to discharge their debts, the bankruptcy will be granted. If they are opposed, however, a trial must be held to determine a solution that the creditors and debtor can agree on. Having a bankruptcy attorney who can work with the creditors to arrive at an agreement to discharge or represent your interests at trial is essential.
One responsibility of a trustee in a Chapter 7 is to examine transactions the petitioner made prior to filing. A transfer of property could be considered fraudulent if it was done as a means to hide assets from creditors in anticipation of petitioning for bankruptcy. An example would be transferring the title to a vacation property to your spouse, adult child, or close friend to keep in from being liquidated
in a Chapter 7.
Sometimes a transfer is made prior to a bankruptcy without intention to defraud, but may be deemed a constructive fraud, meaning that although there was no intention to defraud creditors, the transfer did have that effect. An example would be giving your second car to your adult child who had no other means of driving to work. The intention was to help a family member; the effect was to eliminate an available asset.
In either case, the trustee can go back to the individual who received the transferred asset and demand that the recipient return it to be liquidated in the bankruptcy or pay the fair market value. If the recipient of the asset refuses to return it or pay, the trustee can sue for the value of the asset or force its return.
There are a many possible complications that may arise with respect to bankruptcy and divorce. Although alimony and child support obligations can’t be discharged by bankruptcy, what happens if an ex-spouse has filed for bankruptcy and the divorce settlement obligates that person to pay off the debts of the marriage? That is not technically spousal support, although it bears some similarity. These types of situations require that you have a knowledgeable attorney advocating for your interests.
Because of the potential complications any time you’re considering bankruptcy, it is always best to consult an attorney who limits his or her practice to bankruptcy law.
If you live in Arkansas and are thinking about filing for bankruptcy, contact Dilks Law Firm in Little Rock. Our practice is entirely dedicated to the law of bankruptcy and indebtedness, and we know the ins and outs of the US Bankruptcy Code and its application in Arkansas. We understand the stress and difficulty you are facing and will meet with you in a free consultation to review your legal options. Call today, before your situation gets worse.