Oklahoma Bankruptcy HelpFacts About Tulsa Bankruptcy and Credit Score

Many once-prosperous people have struggled financially in recent years. As a result, personal bankruptcy filings in Tulsa, Oklahoma are skyrocketing.

While bankruptcy may offer partial or full relief from the burden of excessive debts, there literally can be a price to pay – especially when it comes to bankruptcy and credit score.

Chapter 13 Bankruptcy and Credit Score

Chapter 13 is the type of bankruptcy government officials tend to encourage the most, as it partially repays creditors such as banks and mortgage companies. This type of bankruptcy will damage your credit score for seven years from the date you or your attorney filed a request for debt assistance.

But it takes three to five years to repay your debts in Chapter 13. During this time, you cannot legally get new credit without a judge’s permission.

Most companies will not want to deal with someone who has a fairly recent bankruptcy. The good news is lenders tend to be more favorable to potential customers who filed Chapter 13 rather than Chapter 7.

Chapter 7 Bankruptcy and Credit Score

Chapter 7 offers a lot of potential debt relief in Tulsa. If you are unemployed or owe debts you know you can never repay, you probably are not eligible for Chapter 13.

Chapter 7 permanently eradicates many of your pre-existing bills such as credit cards and consumer loans. The bad news is your credit rating will suffer for 10 years from the date you or your lawyer formally requested help.

If you have assets such as real estate equity or a paid-in-full motor vehicle worth more than a few thousand dollars, you risk losing them in the bankruptcy process. So think very carefully before filing Chapter 7 — and always pursue at least a free initial consultation with a qualified Tulsa bankruptcy attorney.

Other Types of Bankruptcy and Credit Score

If you file a business Chapter 7 bankruptcy, this should not impact your personal credit score.

However, it is hard to say whether the Chapter 11 restructuring type of bankruptcy will impact your personal credit rating. Chapter 11 is similar to Chapter 13, but geared toward business owners. Sometimes people combine personal and business debts into Chapter 11, so this could potentially damage your credit rating for up to seven years.

Free Bankruptcy Planning: Tulsa Bankruptcy Lawyer

To get the best possible outcome in your bankruptcy case, you will need to set expectations for yourself and also understand your attorney’s expectations of you.

If you’re ready to file, contact a Tulsa bankruptcy attorney at the Freedom Financial Bankruptcy Lawyers of Tulsa as soon as possible.

To receive your free initial bankruptcy analysis, call the Freedom Financial Bankruptcy Lawyers of Tulsa today at 918-786-9600.