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The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) and its impact on filing a Tulsa Oklahoma Bankruptcy. Bankruptcy in Oklahoma is always an important issue; perhaps never more than since the implementation of the new bankruptcy laws that make it more difficult for Oklahoma consumers to discharge their debts through bankruptcy. According to its proponents, the legislation addresses the problem of consumers' skyrocketing debt. Over the past decade, the number of Americans filing for bankruptcy has doubled and at least $40 billion in debt is now forgiven annually. The "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" makes some sweeping changes to the former bankruptcy laws and how debtors file for bankruptcy, nationally and in Oklahoma. Means Testing. Impacting bankruptcy cases filed subsequent to October 17, 2005, the new bankruptcy code includes the development of a "Means Test." The Oklahoma bankruptcy Trustee or any creditor can now bring a motion to dismiss a Chapter 7 bankruptcy petition if the debtor's income is greater than the state of Oklahoma's median income. This medium income takes in to account many factors, such as the number of dependents, Court ordered Oklahoma child support actually paid by the debtor, and the particular Oklahoma County in which the debtor resides. For a complete list of Means Test factors considered, contact the Tulsa Oklahoma Bankruptcy attorneys at the Kania Law Office. Certain Oklahoma debtors who do not meet a new standard will be directed to file a Chapter 13 bankruptcy which requires the Oklahoma debtor to make payments on the debt under a court administered three to five year repayment plan. Credit Counseling. The bill also includes two provisions mandating financial counseling and education. Before filing for bankruptcy, consumers are required to have a briefing on the alternatives to bankruptcy and before receiving a bankruptcy discharge, a debtor is required to complete an instructional course concerning personal financial management. These provisions were included to provide debtors with the skills and tools needed to avoid future financial problems. Other changes to filing a bankruptcy in Oklahoma and elsewhere include: Student Loans. In the absence of undue hardship, regardless of the nature of the educational lender, student loans are non-dischargeable. This includes loans from governmental, non-government, and private educational lending institutions. The list of hardships that may qualify is complex and your Tulsa or Oklahoma bankruptcy lawyer will need to review them with you. Cash Advances & Luxury Items. Debts owed to a single creditor totaling more than $500.00 for luxury goods incurred within ninety (90) days of filing are presumed non-dischargeable as preferential transfers. Certain cash advances of $750 within seventy (70) days may also be deemed as preferential and as such non-dischargeable. Previous Bankruptcy? Under the new Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, you can file for Chapter 7 only once every eight (8) years. This eight (8) year period begins to run from the date the previous bankruptcy petition was filed, not the date the bankruptcy closed. Alimony & child Support. Oklahoma domestic and child support obligations now have the first priority in distribution. Within this new first priority, support owed to or recoverable by a former spouse or child is given priority over support obligations that have been assigned or owed directly to a governmental unit. Federal Homestead Exemption. Under the federal exemptions in the new bankruptcy code (BAPCPA) a debtor may only exempt up to $125,000 of interest in a homestead that was acquired within the 1,215-day period prior to the filing. This exemption amount is updated every three (3) years too keep up with inflation and was increased to $136,875 on April 1, 2007. This homestead exemption cap is only applicable to homes purchased within 1,215 days prior to a bankruptcy petition being filed. Oklahoma Homestead Exemption. Regardless of bankruptcy law changes made when BAPCPA was passed, Oklahomans who have been living in the state for the two (2) years prior to filing for bankruptcy qualify for the Oklahoma homestead exemption, which does not limit the value of one's homestead that can be claimed. KANIA
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Tulsa Lawyers We are an Oklahoma debt relief agency. We help people file for relief under the Bankruptcy Code. |
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