Oklahoma City Chapter 13 Bankruptcy Lawyers

Given the treacherous state of the American economy, even those people who are lucky enough to continue to be employed and to have a steady source of income are facing significant financial problems on both an individual and a collective scale. As a result, many people are wondering how they’ll be able to get out from under an incredible amount of stress.

One of the options available to people is bankruptcy protection. Unlike Chapter 7 Bankruptcy, Ch. 13 involves setting up a payment plan to pay off most debts without liquidating assets of the debtor.  Below you’ll find an overview of a Chapter 13 filing under the United States Bankruptcy Code, including information regarding what is required to get a case started, how a proposed plan to repay some of the debts involved is resolved, how a case is ultimately decided and how you should proceed in hiring a bankruptcy attorney in OK if you feel the need to find help to put your financial problems in the past.

• Filing for Chapter 13 Bankruptcy in Oklahoma

  If someone needs to file for Chapter 13 bankruptcy protection under the US Bankruptcy Code, the petitioner needs to file a specific set of documents, according to the United States Code. These include:

  1. Schedules of assets and liabilities
  2. A schedule of current income and expenditures
  3. A schedule of executory contracts and unexpired leases
  4. A statement of financial affairs

  In addition, the debtor must file:

  1. A certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling
  2. Evidence of payment from employers, if any, received 60 days before filing
  3. A statement of monthly net income and any anticipated increase in income or expenses after filing
  4. A record of any interest the debtor has in federal or state qualified education or tuition accounts.

  The debtor must also provide the bankruptcy trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case.

  After the filing of these preliminary documents, the petitioner also has 15 days in which to file a proposed plan for repayment. This plan is also submitted to the bankruptcy court. In addition to the filing of the plan, the bankruptcy trustee will file an Automatic Stay, preventing additional collection efforts by creditors and schedule the first creditor’s meeting, which works much like the creditor’s meeting in a Chapter 7 bankruptcy filing, whereby the trustee asks the petitioner basic questions and invites the creditors present to do the same.

• OK Chapter 13 Bankruptcy Confirmation Hearing

  After these initial steps are taken, the trustee will schedule a confirmation hearing, whereby the creditors and the trustee meet with the petitioner to either approve or challenge the tenets of the proposed repayment plan. The plan must provide for regular payments to creditors as well as differentiate between the three different types of claims against the bankruptcy estate:

  • Priority – These usually include tax payments and bankruptcy fees.
  • Secured – Secured claims are those secured by collateral, such as car and mortgage payments.
  • Unsecured – Examples of unsecured debt include credit card balances.

  These inclusions are important, because the plan must provide for full payment of priority claims and payment for at least the value of the collateral with secured claims. The standards are lower for unsecured claims, whereby the petitioner must basically pay disposable income amounts to satisfy those debts.

  Within 45 days of the initial meeting of creditors, the trustee must schedule the confirmation hearing. During this hearing, creditors may object to the plan or voice their opinion that it’s acceptable. If it is accepted, the bankruptcy trustee will begin receiving funds under the plan either via direct payment or via payroll deduction and distribute them accordingly to the creditors in the plan.

• Final Disposition for a Chapter 13 Bankruptcy

  If the payments in furtherance of the plan are made in a timely manner and without any problems, the trustee will step in and close the case when the duration of the plan has lapsed. When this occurs, any remaining debts are discharged and the case is considered to be complete.

File with an Oklahoma City Chapter 13 Bankruptcy Attorney

If you are experiencing problems and cannot meet your monthly bills, but you are able to make some form of payment to your creditors, you need to seek the help of an experienced Oklahoma bankruptcy attorney. As you can see, while a Chapter 13 Bankruptcy filing is a viable option for many people, they can be complicated matters that require the skill and experience of a professional. If the petitioner makes a mistake, the case could be dismissed by the court and retain certain costs associated with failed petition.

If you’d like to avoid these problems and put these problems behind you, contact the Oklahoma City bankruptcy lawyers at the OK law firm of Atkins & Markoff today to schedule an initial consultation.