Oklahoma Bankruptcy HelpHow Do I File Chapter 13 in Oklahoma?
Since 2005, federal laws have favored partial Chapter 13 bankruptcy rather than the more dramatic Chapter 7 bankruptcy. Creditors complained of debtors fraudulently charging bills and filing bankruptcy, so former President George W. Bush signed the BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act) into law.
As a result, Tulsa residents with a decent income are usually expected to partially repay their creditors; they must therefore file Chapter 13 in Oklahoma.
Should I File Chapter 13 in Oklahoma?
Chapter 13 is a court-administered plan that takes three to five years to finish. During that time, the financial affairs of the debtor are the business of Tulsa bankruptcy court officials. The debtor cannot get any new credit accounts, including a home loan refinancing or even a payday loan, without getting a bankruptcy judge’s permission.
People who have a dramatic change in financial circumstances may be required to pay more toward their creditors; people who further lose financial stability through no fault of their own may be “converted” to the more complete Chapter 7 bankruptcy.
In Chapter 7, most creditors are not repaid. The trade-off is Chapter 7 damages a credit score for 10 years. However, those who file Chapter 13 in Oklahoma only sustain damage to their credit ratings for seven years.
Additional Considerations
Chapter 13 cannot alleviate child support, alimony, recent tax debts, or bills resulting from the commission of a crime. Only in rare cases of extreme hardship, usually caused by severe and permanent physical disability, will a bankruptcy judge forgive college loans awarded through the U.S. Department of Education or any other federal government agency.
If someone charges luxury items or vacations right before claiming bankruptcy, such debts may not be included in the case. The same rule applies to accounts acquired through dishonest methods, such as fibbing on a financing application. Sometimes U.S. Bankruptcy Court officials prosecute such acts under federal bankruptcy fraud statutes, so it pays to be as honest as possible during any bankruptcy process.
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.
