What is Bankruptcy?

Generally speaking, there are two types of bankruptcy. In a liquidation bankruptcy, debtors must surrender their property, which is sold, and the proceeds distributed to creditors. In return, all debts are permanently discharged. In a reorganization bankruptcy, debtors are allowed to keep their property. But the debtors must agree to an installment plan to repay creditors a portion of the amount they owe.

Filing for bankruptcy involves submitting a petition and fee to the bankruptcy court. The fee is close to $300 for most personal bankruptcies. The petition will contain sworn statements by the debtors concerning the amount of money they owe, their income and expenses, as well as a complete list of all of their assets. After filing, a court hearing is held to review the information in the petition.

Bankruptcy proceedings are supervised by and litigated in the United States Bankruptcy Courts. These courts are a part of the District Courts of The United States. The United States Trustees were established by Congress to handle many of the supervisory and administrative duties of bankruptcy proceedings. Proceedings in bankruptcy courts are governed by the Bankruptcy Rules which were promulgated by the Supreme Court under the authority of Congress.

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

Our firm ( Hood and Stacy ) has more than 20 years of experience representing creditors in Federal bankruptcy proceedings. Hood & Stacy, P.A. is licensed to practice in all Federal bankruptcy courts in Arkansas, Missouri and Oklahoma. Burton E. Stacy, Jr. invested the first part of his legal career exclusively in bankruptcy law while working for the Honorable James G. Mixon, United States Bankruptcy Judge for the Eastern and Western Districts of Arkansas, and subsequently working for bankruptcy trustees in Oklahoma. Hood & Stacy, P.A. is a proud member of the American Bankruptcy Institute.