If you’re asking yourself if Oklahoma bankruptcy is right for you you might want a free consultation with our Tulsa bankruptcy lawyers. Each year tens of thousands of people file bankruptcy. Most of the people that file have reached the end of their financial rope. Although the process once started is pretty straight forward there are lots of questions and concerns that people have. I’ve set out the top 10 questions and answers people have and hope this sheds some light on filing a bankruptcy in Oklahoma.
Should I File Chapter 7 or Chapter 13?
1. The primary difference between a Chapter 7 and Chapter 13 is that in a Chapter 13 you enter a plan to repay your creditors. In a Chapter 7 you receive a discharge of all your dischargeable debts and there is no need for a repayment plan. Chapter 7 is called a fresh start bankruptcy because most of the unsecured debt is forgiven. Chapter 13 is called a reorganization bankruptcy because it sets you up on a payment plan with your creditors.
2. How long does a Chapter 7 Bankruptcy take? A basic bankruptcy takes about 120 days from filing to final decree. Thirty days after you file you must attend a 341 meeting. Creditors then have sixty days to object to a discharge in your case. If there are no objections there will be an automatic discharge issued. Then thirty days after the discharge the court will issue its final decree and the case will be closed. Unforeseen things, like an objection, can delay the finalization of your bankruptcy.
Do I Have To Go To Court For Bankruptcy?
3.Generally speaking you will not have to go to court. You will have to attend a 341 meeting of the creditors. At this meeting you will be placed under oath and interviewed by the Trustee, assigned to your case, and any creditors that appear. Although, more often than not creditors do not appear. The meeting of the creditors isn’t hard at all. The questions that you’re asked at the meeting are the same questions that you answered in the original petition. Additionally, the meeting is held at our office and done over the phone.
How much Does Bankruptcy Cost?
4. When filing bankruptcy you should expect to pay your attorney’s fee, the court’s filing fee, the cost of credit counseling and a credit report. All of these expenses will have to be paid in advance. Then after filing you will be required to take a second credit counseling course. The filing fee for a chapter 7 is $335.00. The attorney fees are different for every attorney. An average attorney fee is from $1100.00 up to about $1500.00. So with attorney fee and filing fee for a chapter 7 you can expect to pay a total in the range of $1350.00 on up to $1800.00. Some attorney charge extra for reaffirmation agreements that are signed if you own a house or car that your keeping and continuing to pay on.
What Paper Work Do I Need To File?
5. What documents will my attorney need? The required documents differ from case to case. However generally speaking your attorney will need two years of tax returns, 6 months of bank statements, 6 months of pay stubs, titles to all your vehicles, documents that show ownership in property, and documents that show the debts you owe. After an initial interview your attorney will be able to tell you more accurately which documents you need to produce.
Do I lose My Stuff When I File?
6.Is Oklahoma bankruptcy right for me is usually dependent on the assets that you have and what you can keep. Oklahoma has many exemptions that allow you to keep your stuff even though you file bankruptcy. When I file bankruptcy, can I keep my car? Depends. If your car is currently financed and you can afford the payments you can keep your car. If your car is paid off and worth $7500 or less you can keep your car. However if there is a high amount of equity in your car the Trustee may compel you to sell your car. In that case you get to keep $7500 of the proceeds and the balance will be paid to your creditors.
7. Can I keep my retirement? In Oklahoma retirement accounts are exempt. This means they are protected from the Trustee liquidating them to pay your creditors. Yes, you can keep your retirement accounts.
What is a Bankruptcy Discharge?
8. Discharge in an Oklahoma bankruptcy is a order from the Bankruptcy Court which decrees that you are no longer responsible for the dischargeable debts listed in your bankruptcy. This means that if the debt is an unsecured dischargeable debt and you filed a chapter 7 the debt is done. In a chapter 13 bankruptcy at the conclusion of a successful repayment plane, any remaining debt is also forgiven or discharged. If the debt was secured by an asset like your car and you still have the car you can keep it so long as you continue to make the payment. This debt is discharged only if you gave back the security and in this case the security is the car.
Tax Debt and Student Loans in Bankruptcy
9. Student loans may be discharged in bankruptcy, but only if you can prove that repaying the loans would cause you an undue hardship. This is a stringent test. Therefore the general understanding is that student loans will not be discharged in bankruptcy. If your asking is Oklahoma bankruptcy right for me and you want to discharge your student loans bankruptcy isn’t going to do it.
10. As for tax debt, it may be discharged in your bankruptcy if you satisfy all of the qualifications. First, the tax debt must be for taxes on gross receipts; Secondly, the taxes must be from a year at least three years before filing bankruptcy; Thirdly, you must have filed the tax return at least 2 years before filing bankruptcy. Finally, the tax debt must have been assessed against you 240 days before filing bankruptcy. If all these requirements are met the income tax debt would likely be discharged in your bankruptcy.
Free Bankruptcy Consultation in Tulsa
Is Oklahoma Bankruptcy right for me is a question that depends on a few simple factors. If you’ve got bankruptcy questions we’ve got the answers. Our Tulsa bankruptcy lawyers file cases through out the State. This includes the Western Destruct in Oklahoma City. It also includes the Northern District Court in Tulsa as well as the Eastern District Bankruptcy Court. Call Kania Law Office us at 918.743.2233