Oklahoma Bankruptcy HelpDo I Really Have To Get Credit Counseling Before Declaring Bankruptcy in Oklahoma?

Unfortunately, prolonged economic problems have caused more people to seriously consider declaring bankruptcy in Oklahoma. However, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) makes it much harder to file a case in Tulsa.

FAQ: Declaring Bankruptcy in Oklahoma

Since this set of federal laws were enacted in 2005, declaring bankruptcy in Oklahoma is much harder. There are a number of requirements. Yes, a judge from the Tulsa division of the United States Bankruptcy Court can still discharge almost all consumer-oriented debts.

However, BAPCPA requires a debtor to prove his financial instability through a federally designed means testing worksheet. Also, anyone filing personal bankruptcy must attend two federally approved credit counseling sessions.

Additional Bankruptcy Information

Even if someone in financial hot water qualifies for Chapter 7, new bankruptcy laws exclude some types of debt.

For instance, a judge used to be able to discharge or forgive federal student loans that a debtor incurred to attend college. A financial hardship was once a sufficient reason to cancel such debts; BAPCPA changed all of that.

Now, a judge can only discharge government-backed student loans if the debtor is severely and permanently disabled, his college has closed, the school committed some act of fraud, or the debtor was allowed to enroll in a post-secondary academic program without providing proof of a high school equivalency certificate or taking a placement test.

What About Taxes?

Back taxes now can only be included in Chapter 7 if the debts were incurred less than three years before filing bankruptcy. The three-year time window begins with the date the tax return was initially filed and not the tax year itself.

So if a debtor files a 2005 tax return in 2010, he would have had to wait until 2013 to discharge the debts through declaring bankruptcy in Oklahoma.

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.