Consumer Bankruptcy What is Personal Bankruptcy in Oklahoma

by Zach Waxman on October 14, 2012

Personal and Consumer Bankruptcy and Oklahoma Law: Can it Help Me with my Debts?

Ask A Tulsa Bankruptcy Lawyer about Oklahoma Bankruptcy Law:

Personal Bankruptcy: If you are having a trouble paying your bills andBankruptcy Tulsa Family Lawyers Group find that at the end of each month your family income isn’t enough to meet the financial obligations you have than consumer or personal bankruptcy in Oklahoma may give you some much needed relief.  Personal bankruptcy allows you to discharge most of your unsecured debt while allowing you to keep your home, car, and your many of your other assets.  Bankruptcy is a federal program that was put in place over many years as way to help those families and individuals whose personal debt has gotten so out of control that any hope for paying it off is nearly nonexistent.  There are two types of personal bankruptcy in Oklahoma and they are called Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Both Bankruptcy options exist in an Oklahoma bankruptcy but both are very different from one another.

CHAPTER 7 BANKRUPTCY:  In Oklahoma Chapter 7 bankruptcy is available for all consumers.  The chapter 7 bankruptcy law discharges all of a consumers unsecured debt. This includes credit cards, medical bills, repossessed cars and foreclosed homes.  Moreover payday loans and all other debt that was given to the consumer without the consumer having to give over collateral is dischargeable in a chapter 7. To qualify for an Oklahoma chapter 7 you and your family must earn at or below the median family income for a family your size.  Also, you must not have filed a chapter 7 bankruptcy in the past eight years. In a chapter 7 bankruptcy you can keep your home and most other assets that you have while still discharging all if not most of your unsecured debt.

Chapter 13 bankruptcy allows the consumer to discharge a portion of their unsecured debt. The consumer is required to pay what is not discharged back to their creditors through a federally structured repayment plane.  The amount that the Oklahoma consumer is required to repay to the unsecured creditors is determined by what they have as disposable income after paying all of their bills. The chapter 13 repayment plan requires the consumer to make payments on his or her debt for 3 to 5 years after the bankruptcy is filed and the plan is confirmed by the bankruptcy trustee in Oklahoma.  A chapter 13 is reserved for those Oklahoma residents who are employed and whose family income is above the median family income.

CAN I KEEP MY HOME IN BANRUPTCY: In Oklahoma and under both chapters of consumer or personal bankruptcy there exist several exemptions or assets that the bankruptcy court will not take from you.  The most important exemption for Oklahomans in Bankruptcy is their home and car.  If you are current on your home a chapter 7 bankruptcy will allow you keep your home and continue making payments. If you are current or behind on your mortgage payments a chapter 13 Oklahoma Bankruptcy will also allow you to keep you home and also require you to continue making payments.  In a chapter thirteen bankruptcy the arrearage may be put into your plan payment and caught up during the pendency of the bankruptcy plan.

For free advice on Bankruptcy in Tulsa Oklahoma call one of our Oklahoma Bankruptcy lawyers and ask about Bankruptcy Law in Oklahoma

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