As per the Arkansas bankruptcy laws
a person who is no more in a state to pay off his debt can surrender.
In this case he gives off his personal property like house or vehicle to clear off his remaining debts.
Let’s go through the diverse section of chapter 7 and 13.
- In chapter 7 you only pay the amount proposed by your lawyer.
- Next you only need to pay on your confirmed debt that you are maintaining and your surviving expenses subsequently.
- Chapter 13 is considered to be ‘restructuring’ or ‘wage earner’ because
- over here the individual have certain capability to pay off the debts to the creditors.
- In chapter 13 your overdue amount is restructured into one, more inexpensive expense