Filing bankruptcy on past rent is a solution for many renters in Oklahoma. As inflation continues to grip the economy and wages remain steady, many Americans have faced hard financial decisions. In these trying economic times, you may have fallen behind on your rent. As your bills mount, you may be searching for a way to obtain relief. Bankruptcy was created to give consumers a path toward creating a fresh financial start. Still, it may not be the best option for every situation. Here’s more on filing bankruptcy on past rent and some additional financial alternatives that may help you gain financial freedom.
What Is Bankruptcy?
In its simplest form, bankruptcy is a restructuring of your finances. When you file bankruptcy, you declare that you cannot pay your current debt. You are asking for assistance getting a fresh financial start. While this allows you to shed most of your debt, this is not guaranteed that you qualify. Only certain eligible debt can be eliminated. Depending on your specific situation, you may be required to enter a repayment plan. Additionally, filing bankruptcy usually results in your credit rating taking a significant hit in the short run. The damage to your creditworthiness can be short-lived but is dependent on things you due after the case is filed.
Filing Bankruptcy on Past Rent in Oklahoma
It is important to understand that there are several distinct types of bankruptcy. One of the more popular forms of bankruptcy is Chapter 7. If you qualify, Chapter 7 allows you to discharge (eliminate) your past due rent. Additionally, filing for bankruptcy may put a temporary hold on any pending eviction actions. While your landlord may not be able to kick you out while your bankruptcy case is active, you may ultimately end up being evicted once your case is complete.
Not everyone that files for Chapter 7 will qualify. If your income is too high for Chapter 7, you may be able to file Chapter 13. This form of bankruptcy typically requires you to enter a repayment plan to pay back qualifying debt. With past due rent, you have the option of including that sum in your repayment plan in the event you would like to remain in the apartment. You also have the option of rejecting your lease and eliminating the past due rent. If you select this option, then you will face eviction once the case is filed.
Alternatives To Bankruptcy
Filing bankruptcy is not something that you should do without first exploring all the available alternatives. Accumulating past due rent is not uncommon. For many people, there are ways to resolve this debt that do not include filing for bankruptcy. Working out an arrangement with the landlord may be a way to avoid being evicted and suffering devastating damage to your credit rating.
Simply moving out and forfeiting your security deposit may also allow you to come out from under your debt and maintain your good name. Lastly, some landlords may be willing to forgive the debt if you provide them with enough notice so that they can find a new tenant to replace you. Because bankruptcy can have long-lasting, life-altering effects, it is recommended that you consult with an experienced attorney before you decide to file.
Hiring An Attorney In A Bankruptcy Case
If you face significant debt, including unpaid rents bankruptcy may be right for you. Although bankruptcy seems difficult its really not as bad as many of us think. Its a last and most times best chance to get back on your feet. Its important to understand that filing bankruptcy is not the end. Many times its a new beginning or fresh start. Filing Bankruptcy on Past Rent in Tulsa is a great option when all else has failed. For more insights on whether bankruptcy is right for you call the Tulsa bankruptcy lawyers at Kania Law Office. Get a free consultation by calling (918) 743-2233 or by contacting us online.
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.