Oklahoma Bankruptcy Options: Adjustment or Liquidation
Adjustment of Debts: A Chapter 13 bankruptcy tends to be the preferred form of bankruptcy because debtors are able to stay in possession of their assets. Because the debtor is actually repaying the debt, the court allows a longer time period for repayment, usually three to five years. An Oklahoma bankruptcy attorney prepares a repayment plan and presents it to the court. The court confirms or denies the plan depending on whether it complies with bankruptcy standards.
ADVANTAGES OF FILING BANKRUPTCY IN OKLAHOMA CITY
The likelihood of repaying 50% or more of the debt is the most deterring characteristic of Chapter 13 bankruptcies. A debtor will most likely not feel the relief that a “discharged debt” gives in a Chapter 7 bankruptcy. Moreover, if a payment is missed, the debtor is in contempt and could be forced to pay the entire debt back.
ADVANTAGE: Protected from lawsuits, garnishments, and other creditors!
Liquidation: A Chapter 7 bankruptcy involves the collection of the debtor’s assets and conversion of the assets into creditor payments. This could be likened to a garage sale. The court appoints a trustee to liquidate the debtor’s assets and pays the creditors with the assets-to-cash conversions.
ADVANTAGE: Discharged debt and financial freedom is immediate!
What types of debt are exempt from bankruptcy?
Unpaid tax debt
Unfiled debt with the court
Unpaid child support
Court or government fines
Personal injury debts caused by drinking and driving
Cooperative housing loans or debts
What is most important for you to know?
Only 1/3 of Chapter 13 bankruptcies are repaid.
Chapter 7 bankruptcies affect credit reports for 7-10 years.
Owning a home with a large amount of equity, co-signors, or a large amount of assets will prevent a bankruptcy due to new legislation.
HOW TO FIND A OKLAHOMA BANKRUPTCY LAWYER
Experienced attorneys have years of experience in the field of bankruptcy and financial litigation. With the help of a qualified Oklahoma lawyer you can help re-establish your financial stability with a minimum amount of loss.