There is an opportunity for those struggling with overwhelming debt in Oklahoma to seek financial relief: bankruptcy. More and more people are choosing to file bankruptcy as they find themselves unable to conquer the mountain of debt they have acquired over the years. In fact, since the economic downturn began in 2008, the number of bankruptcy filings has increased by about 50%, as Americans continue to struggle with financial problems they were unable to foresee. It’s not easy deciding whether or not to file bankruptcy, especially considering the negative stigma associated with this debt-relief option. However, if you are overwhelmed by credit card debt or you are facing foreclosure, bankruptcy may be your best chance for a fresh start. If you are considering filing bankruptcy in Oklahoma, contact an experienced Oklahoma bankruptcy attorney for legal help.
CHAPTER 7 OR CHAPTER 13 BANKRUPTCY?
There are two main types of bankruptcy: Chapter 7 and Chapter 13. While both give you relief from your debts by ending your liability to pay and your creditors’ ability to collect, it’s important to note the main differences between Chapter 7 and Chapter 13 bankruptcy when filing bankruptcy in Oklahoma.
Chapter 7 bankruptcy is commonly referred to as “liquidation bankruptcy,” since it gives debtors the opportunity to do away with most or all of their unsecured debt, or debt that isn’t tied to property. This is the most common type of bankruptcy and can effectively eliminate debt from credit cards, medical bills and personal loans. Chapter 7 exemptions, or types of property that are protected and won’t be sold, include your homestead, cemetery lots, an automobile worth up to $7,500, up to $2,000 worth of guns, and more.
Chapter 13 bankruptcy is different from Chapter 7 because it essentially reorganizes your debts, allowing you to make partial or full payments according to a repayment plan put in place. Debtors may choose to file Chapter 13 bankruptcy for the following reasons: they have mortgages or loans they want to bring current through the repayment plan, so they can keep the property; their debts are ineligible for Chapter 7 discharge, such as student loans, child support or taxes; they are motivated to pay off debts because of personal morals.
With Chapter 7 bankruptcy, there is nothing left to pay creditors after accounting for your property exemptions, while Chapter 13 bankruptcy strikes a sort of deal between you and your creditors; your creditors receive some payment and you get some debt relief.
CONTACT AN OKLAHOMA BANKRUPTCY ATTORNEY FOR LEGAL HELP
If you are considering bankruptcy in Oklahoma as an opportunity to eliminate your overwhelming debt, it is essential that you enlist the help of a qualified Oklahoma bankruptcy attorney immediately. Bankruptcy lawyers are familiar with important aspects of Oklahoma laws governing bankruptcy filing, and can help you deal with necessary paperwork and navigate the sometimes complicated legal procedures. Filing for bankruptcy can be a difficult and emotional process; with the help of an experienced Oklahoma City bankruptcy attorney, you ensure that you understand all your options and get the financial help you need.