Understanding Chapter 13 Bankruptcy in the State of Oklahoma
Most Oklahoma individuals with a regular income who aren’t eligible for Chapter 7 bankruptcy are eligible for declaring Chapter 13 bankruptcy.
In many respects, Chapter 13 bankruptcy is similar to Chapter 7 in that a consumer’s dischargeable debt is wiped out; however, in a Chapter 13 this occurs only after an individual has fulfilled the terms of their three-to-five year repayment plan.
Although you should direct any specific questions about your own financial situation to a dedicated Tulsa Chapter 13 bankruptcy attorney, knowing a little bit about the Chapter 13 process is helpful before your initial consultation.
Get Relief From Dischargeable Debt
In a Chapter 13 bankruptcy, the court-appointed trustee works with you and your creditors to establish a reasonable repayment plan focusing on your dischargeable debt. As long as you consistently make your payments under the new arrangement, you can expect that any remaining dischargeable debt will be erased at the end of a three-to-five-year period. This includes medical bills, credit card bills, and any outstanding balances you may have with utilities.
If you fall behind in your payments due to job loss or other contingencies, you may request a modification of your repayment plan or else see if you have become eligible for Chapter 7 bankruptcy. Keep in mind that other debts such as student loans, child support, fines related to criminal prosecutions, and past-due taxes are generally not dischargeable under federal law.
Benefits of Filing Chapter 13 Bankruptcy
Creditors naturally prefer that consumers file for Chapter 13 bankruptcy instead of Chapter 7 because they are more likely to recover their debt. This is why individuals for whom it is feasible to complete the terms of a Chapter 13 are expected to do so under federal law instead of resorting to Chapter 7 liquidation.
One benefit to declaring Chapter 13 for consumers, however, is that it allows consumers to retain ownership of important assets like their homes or vehicles more readily than Chapter 7 bankruptcy does, even if they are behind on their payments to lenders by months. The other benefits of declaring Chapter 13 are similar to those of other kinds of bankruptcy filings in that any existing wage garnishments or tax liens are automatically stayed, as are harassing calls from creditors and collection agencies. Foreclosure or repossession proceedings that may be underway are also temporarily halted.
You should certainly ask a Tulsa Chapter 13 bankruptcy attorney about how your financial situation may affect your long-term ownership of important property, but, as noted above, most of the time consumers who file for Chapter 13 end up holding on to them.
Get Help Now From an Experienced Tulsa and Broken Arrow Chapter 13 Bankruptcy Lawyer
When filing for bankruptcy, you are expected to enroll in a credit counseling class with an agency that is approved by the US Trustee’s office. If you are unsure where to take such a class, your Chapter 13 bankruptcy attorney can help point you in the right direction. Contact Matthew E. Riggin Bankruptcy Attorney at Law to schedule a free consultation with a Chapter 13 bankruptcy attorney today.