A Chapter 7 Bankruptcy Attorney for Tulsa and Broken Arrow Families
Chapter 7 bankruptcy – also known as straight bankruptcy or liquidation – is the simplest kind of debt relief.
Since individuals who would be able to reasonably fulfill the terms of a Chapter 13 debt restructuring are generally not eligible for filing for Chapter 7, it’s important to speak with an experienced Oklahoma Chapter 7 bankruptcy attorney before committing to any course of action.
If you do qualify for Chapter 7 bankruptcy, however, you’re in luck: assuming the filing process goes smoothly, in four to six months you could have a completely new lease on your financial life. The information below explains how the bankruptcy process works.
Understanding What Chapter 7 Bankruptcy Means in Oklahoma
In theory, individuals filing for Chapter 7 bankruptcy are required to sell off (that is, liquidate) important assets such as real property and vehicles. The proceeds from this sale are then used to honor debts to creditors. After this process is completed, any remaining dischargeable debt – including credit card balances, medical bills, and past-due utility payments – is wiped out.
However, individuals declaring bankruptcy seldom have any substantial assets to liquidate, meaning that they may not have to sell any property at all. Furthermore, if a person is current with their home and vehicle payments to lenders, they can usually protect these assets from liquidation.
In any case, when you file for Chapter 7 bankruptcy, the court appoints a trustee whose job is to help creditors recover as much of the debt you owe them as possible. Since the fee they collect is based upon how much debt they can recover, you can expect them to be aggressive in doing so. The trustee evaluates your filing paperwork to ensure that it is in order and tries to find out if you own any other property that may be suitable for liquidation. Finally, the trustee will review any financial transactions that you’ve conducted over the last year to determine if any of these can be reversed.
Put a Stop to Wage Garnishments, Repossession, and Foreclosure Proceedings
As with other forms of bankruptcy, once you file for Chapter 7 bankruptcy in Oklahoma, creditors and collections agencies will no longer be permitted to contact you except through the bankruptcy court itself. Any garnishments or liens to which you are subject will be temporarily stayed, as well as any foreclosure or repossession proceedings that may be underway.
Not including your bankruptcy attorney’s fees, filing for Chapter 7 bankruptcy generally costs a little over $300. As noted above, filing usually takes between four and six months. Most of the time the individual so filing is only required to appear in court one time. In order to file for Chapter 7 bankruptcy you will also be required to receive credit counseling with a US trustee-approved agency. Your Oklahoma Chapter 7 bankruptcy attorney can help you find a local agency if necessary.
Proudly Protecting the Rights of Oklahoma Debtors
Remember: if you are eligible for a Chapter 13 bankruptcy, you probably can’t file for Chapter 7. Also, if you filed for bankruptcy in the last 6 to 8 years, you may be not be able to file for Chapter 7 currently. Schedule a free consultation to learn more about your options for securing debt relief. We can help get you, and your family, on the road to a brighter financial future.