How long bankruptcy takes in Oklahoma depends on which kind of bankruptcy you file. There are many myths about what happens, how long it takes, what things you get to keep, and what you must give up. We want to help you understand the process before you decide if it is right for you. One common issue we address is how long does bankruptcy take? The length of the proceedings depends on the type of case you file and what you want to accomplish. This article will describe Chapter 7 and chapter 13 and give you an idea of how long the process can take.
Chapter 7 Bankruptcy
Commonly known as “the clean start” or “fresh start,” Chapter 7 is what most people think of when they hear the term bankruptcy. During this process, you discharge or get rid of your debt. When you discharge a debt, you are no longer responsible for it and do not have to pay it back.
During this type of bankruptcy, you must disclose all your debts. This includes the debts that you want to continue to have even after the bankruptcy. For example, if you have a mortgage on your house and you wish to keep your house after the case is filed, you still must disclose this debt during the proceedings. This also holds true for things like car loans.
For debts that you wish to keep, after disclosure, you must sign what is known as a “reaffirmation agreement” with the creditor. This agreement is filed with the bankruptcy court to give notice that the creditor has agreed to let you keep the debt and collateral through the bankruptcy process and afterward. Usually, for a creditor to want to sign a reaffirmation agreement, you must be current on the debt with them.
Chapter 13 Bankruptcy
Chapter 13 is much different than chapter 7. A chapter 13 takes much longer to get through than a chapter 13. Like a chapter 7 This kind of bankruptcy is governed by the United States Code. Chapter 13 allows individuals with a regular income to develop a plan to repay all or part of their debts. This repayment is done over a period of time, typically three to five years.
Chapter 13 bankruptcy is often referred to as a “wage earner’s plan” because it is designed for individuals who have a source of income and want to repay their debts rather than liquidate non-exempt assets as in Chapter 7. A chapter 13 is usually reserved for those people who do not qualify for chapter 7. This is normally because their income is above the median family income. In the case when your income is to high you no longer qualify for a chapter 13.
Types Of Property
The types of property involved in bankruptcy proceedings can affect how long the proceedings will take to complete. During a Chapter 7 bankruptcy, a trustee is named to review all your assets and determine if they are exempt allowing you to keep them. Essentially you are allowed to keep assets like your home, car and personal property. The exemption also applies to most personal belongings as well as tools of the trade. If you own luxury items those items are not considered exempt and can cause your case to take longer.
How Long Will It Take?
We can’t predict exactly how long your Chapter 7 bankruptcy will take. In some scenarios, the bankruptcy courts are on time and can move the process quickly. In other instances, what seems like a simple proceeding may take longer than expected.
On average, a Chapter 7 bankruptcy in Oklahoma takes about 90 days to complete. We cannot guarantee it will take 90 days, but it is typically a good estimate when looking into the process.
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Oklahoma Bankruptcy Attorneys
If you are wondering if chapter 7 bankruptcy is the right choice for you or how your assets may be affected by the process, contact the attorneys at Kania Law Office. We can help you review the assets you own, determine what you will be likely to be able to keep, and guide you through the process. Call our offices at 918-743-2233 or visit us online for more information.