If you are considering bankruptcy, research Arkansas bankruptcy law before you proceed with the decision so you know what to expect from the process and what exemptions you are entitled to.

When starting a business, no one thinks they will fail; however, things happen and there may come a time when filing for bankruptcy becomes the best course of action for yourself and your business. Before filing for bankruptcy, keep in mind the following:

1. Have a plan for life after you file bankruptcy in Arkansas. Help yourself by looking at your current situation not solely as an end but also view it as a new beginning.

2. Have a good understanding of bankruptcy laws in Arkansas and how they can affect your life--from your credit rating to your ability to start a new business.

3. Understand what brought you to this point. Learn from the situation so if you ever start another business, you can avoid bankruptcy a second time.

Action Steps
The best contacts and resources to help you get it done

Determine the exemptions you have under AR bankruptcy laws

Knowing and understanding the exemptions you have available to you will make navigating the Arkansas business bankruptcy laws easier and less time consuming. Arkansas is considered a highly favorable state for exemptions, which can work well for you if you have a property you are looking to save.

I recommend: Bankruptcy Information has a chart of all the exemptions that are available under Arkansas bankruptcy laws. Credit Clean has a detailed chart of the exemptions available under Arkansas bankruptcy law.

Review the Arkansas business bankruptcy process

After the passage of the 2005 Bankruptcy laws, filing for bankruptcy has changed drastically. There's a new credit counseling provision, and when you file chapter 13 bankruptcy, you are expected to pay more under your payment plan and face stiffer penalties if you don't make timely payments. Bankruptcy laws in the state of Arkansas have been affected accordingly, and you should have a thorough understanding Arkansas' bankruptcy laws and codes to make filing an easier and smoother process.

I recommend: Lawyers.com gives step by step details on how the bankruptcy process in Arkansas works. The Bankruptcy Site offers a detailed overview of the Chapter 7 bankruptcy process.

Hire a good Arkansas bankruptcy attorney when filing for bankruptcy

A good lawyer is absolutely necessary when filing for bankruptcy. The more assets you have, the more complicated your filing may be. There are plenty of quality Arkansas bankruptcy lawyers, so help yourself by hiring a good attorney.

I recommend: AttorneyPages has a database of lawyers that can be searched by city or county. The Madden Law Firm is a Little Rock law firm that specializes in bankruptcy law. They also have locations in Hot Springs, Conway, West Memphis and Pine Bluff.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To help you make the decision on whether bankruptcy protection is right for you, consult Arkansas bankruptcy attorneys to determine what your priority debts are before filing for bankruptcy. Your priority debts include things such as alimony, child support or any back taxes you may owe that won't be wiped out during the bankruptcy process.