By Martha Ayres
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April 4, 2025
If you are feeling buried in debt, you might be searching for answers online. One of the most common questions people ask is, “What is Chapter 7 bankruptcy?” Don’t worry—we’re here to help. What Is Chapter 7 Bankruptcy? Chapter 7 is a way to get rid of some or most of your debt. It’s often called a “fresh start.” Chapter 7 is also known as liquidation. That is because when you file Chapter 7, the Court-appointed Trustee temporarily owns all of your property. For example, suppose you own luxury items or assets unnecessary for the health and welfare of your immediate family members. In that case, the Trustee can liquidate or sell the property to raise money for your creditors. However, if an experienced Arkansas bankruptcy attorney adequately represents you, you can keep most or all of your property in the majority of cases. Of course, this does vary with the facts of each case, but an experienced bankruptcy attorney can protect your property using the bankruptcy code and state exemption laws. Call to schedule your free consulation today.