Chapter 7 Bankruptcy: How does it work?

Chapter 7 bankruptcy is known as a liquidation bankruptcy, in which a bankruptcy trustee gathers and sells — e.g., “liquidates” — the debtor’s non-exempt property. The trustee then applies the proceeds from those sales to the debtor’s outstanding debts. When the bankruptcy case is over, the Court will discharge the debtor from further liability on most of his or her existing unsecured debts.

The trustee’s authority to sell property in a Chapter 7 bankruptcy is limited to non-exempt assets, not necessarily to all the debtor’s assets. The Bankruptcy Code contains a list of federal exemptions, but permits each state to enact its own list of exemptions and decide which list its residents may use. Some states have opted out of the federal exemptions, requiring debtors to use that state’s exemption list. Other states permit the debtor to choose either the federal or state exemptions.

Cost to file chapter 7 in Arkansas

The chapter 7 filing fees in Arkansas are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Where do I file for bankruptcy in Arkansas?

Chapter 7 bankruptcy cases in Arkansas are filed with the Bankruptcy Court for the Eastern & Western Districts of Arkansas. The Eastern and Western Districts are divided into five (for the Eastern District) or six (Western) divisions, most of which have their own courthouse.

Eastern District

Western Division:

Location: U.S. Bankruptcy Courthouse

Street Address: 300 W. Second St.

Little Rock, AR 72201

Telephone: (501) 918-5500

Pine Bluff Division:

Street Address: 100 E. Eighth St.

Pine Bluff, AR 71601

Telephone: (870) 536-1190

Jonesboro Division:

Street Address: 615 S. Main St.

Jonesboro, AR 72401

Telephone: (870) 972-4610

Northern Division:

Street Address: 490 College St.

Batesville, AR 72501

Telephone: (870) 793-4330

Eastern Division:

Street Address: 812 Walnut St.

Helena, AR 72342

Telephone: (870) 338-6321

Western District

Fayetteville and Harrison divisions:

Location: Divisional Office, Federal Building

Street Address: 35 E. Mountain St., Room 316

Fayetteville, AR 72701

Telephone: (479) 582-9800

El Dorado Division:

Street Address: 101 S. Jackson . Ave.

El Dorado, AR 71730

Telephone: (870) 862-1202

Fort Smith Division:

Location: Judge Isaac C. Parker Federal Building

Street Address: 30 S. Sixth St.

Ft. Smith, AR 72901

Telephone: (479) 783-6833

Hot Springs Division:

Street Address: 100 Reserve St.

Hot Springs, AR 71901

Telephone: (501) 623-6411

Texarkana Division:

Street Address: 500 State Line Blvd.

Texarkana, AR 71854

Telephone: (870) 773-3381

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