Oklahoma Bankruptcy HelpHow Long Will a Tulsa OK Bankruptcy Damage my Credit?
Many once-prosperous Oklahoma residents have struggled financially in recent years. As a result, personal Tulsa OK bankruptcy filings 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 your credit.
Tulsa OK Bankruptcy Credit FAQ
Chapter 7 offers a lot of potential debt relief as far as Tulsa OK bankruptcy filings. 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.
What About Chapter 13 in Tulsa?
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.
However, it takes three to five years to repay your debts in Chapter 13. During this time, you cannot legally get new credit without a Tulsa bankruptcy 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.
If you are unemployed or owe debts you know you can never repay, you probably are not eligible for a Chapter 13 Tulsa OK bankruptcy.
Additional Considerations
If you file a business Chapter 7 bankruptcy in Oklahoma, 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.
For specific questions, you should consult with a qualified Tulsa bankruptcy attorney.
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.
