What Is Chapter 13 Bankruptcy In Oklahoma

by Zach Waxman on January 23, 2013

Chapter 13 Bankruptcy Basics:

If you are considering Bankruptcy most consumers will need to decide to file either a chapter 7 or a chapter 13 bankruptcy. The primary difference is that under chapter 7 Bankruptcy the debtor is given a fresh start while a chapter 13 requires the debtor to repay some portion of the debt for five years. The determining factor is generally what you qualify for.
Some may not qualify to file a Chapter 7 due to their current monthly income. If your income is more than the state median, the Bankruptcy Code requires application of a “means test” to determine whether the Chapter 7 filing is presumptively unavailable to you.  If so, Chapter 13 Bankruptcy may be a solution for you.
Chapter 13 Bankruptcy has its advantages too.  Unlike under a Chapter 7, you will have the opportunity to save your home from foreclosure in these tough times when you have several months of unpaid mortgage payments. Sometimes it is hard to get caught up on your mortgage after you miss a payment. Often the bank won’t even pick up the phone when you call or accept payments to get you back on track. Chapter 13 can change this for you. You can stop foreclosure proceedings and cure delinquent mortgage payments in just three to five years.  
Just like a Chapter 7, a Chapter 13 Bankruptcy will stop phone calls and garnishments.  If your bank accounts or paychecks are being garnished and you don’t qualify to file a Chapter 7, a Chapter 13 will give you relief from the constant calls and uncertainty of when you will be garnished again.  So, for the next three to five years you may never have to worry about picking up the phone. Those annoying calls will be a thing of the past.
Chapter 13 also allows you to consolidate your debts into one easy payment. Under a Chapter 13 payment plan, we will work with you to make sure all of your debts are paid in one payment. With so many letters from creditors and collection agencies, it’s tough to tell who you might actually have to pay or when the payment is due. A Chapter 13 Trustee appointed by the court takes charge of your accounts and makes payments to them. If after the completion of an approved Chapter 13 payment plan, which may be as short as three years, you have paid only a portion of you debt, your remaining debts may be wiped clean.    
Chapter 13 may also allow you to reschedule car payments and other secured debts (other than a mortgage for their primary residence) and extend them over three to five years.  In Chapter 7, you have to surrender property that you are currently unable to pay for.  In Chapter 13, you can work with our bankruptcy lawyers to find a way to make the payments and keep your car or truck.
Chapter 13 also contains a special automatic stay provision that protects co-debtors. Unless the bankruptcy court authorizes otherwise, a creditor may not seek to collect a debts from any individual who is liable along with you. So, if a family member co-signed on a loan with you and you are worried that the creditors are going to garnish them, or you are worried that their credit is going to be adversely affected, Chapter 13 may be a way to save their credit and yours at the same time.  
The Family Lawyers Group Tulsa bankruptcy lawyers represent Oklahomans with debt problems, helping them to navigate through the Federal Bankruptcy Codes and stop collection calls, foreclosures, and judgments, while protecting their assets.  If you would like a free consultation so that we can review your financial needs and advise you of your options under the Federal Bankruptcy Code, we invite you to contact a Tulsa, Oklahoma Bankruptcy Attorney from the The Family Lawyers Group please call 918-742-3555

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