In Oklahoma there are certain Disqualifications For Filing Bankruptcy. The first place to start is dependent on whether a person is filing a chapter 7 or a chapter 13 bankruptcy. Because the things that disqualify a person are similar between each type and chapter 7 is much more popular among bankruptcy types this article explores disqualifications for filing chapter 7 Bankruptcy.
You Must Pass The Means Test In Oklahoma
- Chapter 7 bankruptcy is only available to individuals who pass the means test. The means test creates disqualifications for filing Bankruptcy if your income exceeds the median family income in your zip code.
- If your monthly income is too high compared to the median income in Oklahoma, you may be disqualified from Chapter 7.
- However, you can still file Chapter 13 bankruptcy if you don’t qualify for Chapter 7. A chapter 13 is a great solution to your financial troubles but does not fully discharge your unsecured debt
Prior Bankruptcy Filing Within Time Limits
- Chapter 7: If you received a discharge in a previous Chapter 7 case within the last 8 years, you cannot file again until the time limit expires. This causes great confusion to people as it has changed over the years. The date runs from the date you filed your last case rather than the day the prior case closed.
- Chapter 13: If you received a discharge in Chapter 13 within the last 6 years, you may be disqualified from filing Chapter 7 unless certain payment conditions were met in your prior case. Additionally this time can change depending on if you paid 100% of the chapter 13 unsecured debt or an amount less that.
Fraudulent Behavior
- Bankruptcy fraud The biggest one of the Disqualifications For Filing Bankruptcy is fraud. All cases are reviewed by the bankruptcy trustee. They do this with a special eye on fraud. Its simple, be honest and the rest is simple.
- Examples of fraud include:
- Hiding assets to avoid them being liquidated. What you need to consider is that in Oklahoma assets people might think they’re going to lose they are not. Things like your home, vehicle and other assets are exempt and not subject to liquidation. Once again, talk to the bankruptcy attorney and they’ll let you know if the asset is exempt.
- Lying on your bankruptcy petition.
- Transferring property to others before filing bankruptcy to keep it out of the bankruptcy estate. This is so common and easy for the Trustee to find. This is because they have ready access to court records and DMV records. Once again, its simple, don’t do it.
Failure to Complete Credit Counseling
- Pre-bankruptcy credit counseling is a requirement. Pre-bankruptcy credit counseling is an entry level requirement yet is often times missed. This credit counseling certificate is filed with the original petition. Its important to remember that the course expires so don’t wait to long after you take it.
- If you fail to complete an approved credit counseling course within 180 days before filing, you can be disqualified.
Failure to File Required Documents
- You must file all required bankruptcy documents, including:
- Schedules of assets and liabilities. This is found in the petition itself. The bankruptcy attorney does this for you as part of the case.
- Income and expenses. Once again the bankruptcy lawyer includes this in the schedules. An example is the required six months of payroll advices and, if needed, a profit and loss.
- Tax returns. For chapter 7 you need the last two years and they must be the complete return.
- Statement of financial affairs
- Failure to file these documents can result in a dismissal of your case.
Get A Free Bankruptcy Consultation
If you are having financial difficulties you should get a free consultation with an Oklahoma bankruptcy Attorney near you. Many people are surprised to find out just how much bankruptcy can help. You can either consolidate debts in a chapter 13 bankruptcy or discharge them completely in a chapter 7. Call the Tulsa Oklahoma bankruptcy attorneys at Kania Law Office 918.743.2233. Or click this link to ask a free on line legal question.
Tulsa's Local Bankruptcy Lawyers
Are you looking for Tulsa attorneys who will fight aggressively for you? Our team of bankruptcy attorneys have the experience needed in Oklahoma law to secure the outcome you deserve.
Call us today for a free consultation 918-743-2233 or contact us online.