Oklahoma Bankruptcy HelpComparing Debt Management Plans and Chapter 13 Tulsa

These days, more lenders are willing to settle for even partial payment of past-due debts.

Even people who once had six-figure jobs are financially struggling, and a financial institution’s worst nightmare is the customer who must declare a total Chapter 7 bankruptcy in Oklahoma due to his inability to pay the bills.

Terms such as debt management plans and Chapter 13 Tulsa bankruptcies are tossed around fairly frequently, but some people need a better understanding of what is the difference between a debt management plan and Chapter 13.

Debt Management Plan vs. Chapter 13 Tulsa

A debt management plan and Chapter 13 Tulsa have some similarities. Both provide a single monthly payment and a way for a struggling debtor to have the amount of many of his financial obligations reduced. Both options provide at least some financial relief, but negatively impact a consumer’s credit score for seven years.

But financially struggling people really need to be careful with a debt management plan. These are typically administered through credit counseling services, which may or may not be approved by the federal government.

Some debtors have horror stories of “credit counselors” mishandling their payments. Also, some debt management firms work for the credit card companies, which is a clear conflict of interest. The credit-counseling firms also charge monthly fees.

Pursuing Chapter 13 Bankruptcy in Tulsa

Filing Chapter 13 bankruptcy is a grueling process in some ways, but offers many protections to people struggling financially.

In a Chapter 13 Tulsa, federal bankruptcy laws protect the debtor so there will not be any issues with mishandled payments.

It takes three to five years to complete the repayment plan, though like with a debt management plan the consumer cannot get any new credit without an official’s authorization.

The guidance of a qualified Tulsa bankruptcy attorney is invaluable, especially if the debtor hopes to protect assets such as residential real estate.

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.