Are you a resident of Oklahoma and wondering how to manage your debts?

You might have tried making repayments, but the interest has become unmanageable, and you’re looking for a solution. Have you ever wondered, “How do you file for bankruptcy?”

The process might seem daunting, but if you can’t keep on top of your financial situation, it might be your best option. You’re not alone – with the financial impacts of COVID-19 being felt all over the country, it’s believed that next year might set a record for bankruptcy filings.

If you want to straighten out your finances and see if discharging your debts is an option, it’s time to consider filing for bankruptcy. We’re going to answer the main questions that you’re likely to have, so you’ll have a basic grasp of how it works. Read on!

Do You Have Alternative Options?

Before we get into the details of bankruptcy law in Oklahoma, the first thing you should consider before filing for bankruptcy is whether you have other paths.

The federal laws surrounding bankruptcy protection are intended to help individuals and businesses who possess more debt than they can afford to repay. These laws permit the opportunity for those eligible to start over by liquidizing assets or establishing a payment plan so that creditors can be regularly repaid.

There are alternative ways to resolve the financial difficulties of a debtor, and sometimes they are better options too.

One of your alternatives is to negotiate the terms of your debt with creditors. This may result in an extended deadline to repay what’s owed, a reduced total amount, or a mix of both. Although you might have to negotiate any property that was previously used to guarantee the loan, it will save future legal costs.

Another option to look into is consolidating the debts into one loan. This is particularly attractive if the loan can be extended over a longer time frame. When negotiating, you should seek to achieve a lower interest rate than the combined amount for the smaller combined debts.

How Do You File for Bankruptcy?

Now we’ll give some specifics on how to file for bankruptcy. Some documents that you’ll need to file are required and some will be useful for filling out the bankruptcy forms. You’ll need your most recent income tax return, pay stubs, and credit reports from all three agencies.

A credit counseling course is required and must be completed within six months (180 days) before the bankruptcy filing. The course only lasts an hour or two, and there are often online and phone options in addition to in-person.

The completion of the bankruptcy forms is the most significant part of the process, which is why most filers will use an Oklahoma city bankruptcy attorney. Your attorney will ask for all the necessary documents and ask the questions needed for additional information.

There is a filing fee, which differs depending on which chapter you file. These fees may also be subject to future change. There’s also an income threshold where the fee can be waived.

It’s advisable to print the bankruptcy forms directly before filing since some of your details may have changed since you last obtained them.

After you file, an injunction is automatically enacted, known as an automatic stay. This prevents creditors from carrying out certain debt collection activities. For chapters 12 and 13, a co-debtor “stay” can protect third parties from consumer debt collection activities also.

Creditors can still pursue debts incurred after the filing as they normally would.

Should You File a Chapter 7?

Chapter 7 is a liquidation (of assets) or straight bankruptcy. Currently, the fee is $245, with a $75 miscellaneous administrative fee and a $15 trustee surcharge. This money is paid to the court clerk upon filing.

An appointed trustee decides which assets aren’t exempt from creditors and sells them, with the money from the sale going to the creditors.

Often, a discharge of debt is sought, meaning that the courts decide that you don’t need to pay it all back. You’d still owe your past three years of taxes regardless, and you will not be able to discharge debt again for 8 years.

An Oklahoma bankruptcy filing has certain commonalities between both chapter 7 and 13. This includes the filing of the petition (mentioned above), a statement of financial affairs, and schedules of assets and liabilities. Here’s what you need:

• List of creditors with amount and details of the claim
• Debtors income source, amount, and frequency
• List of debtor’s property
• List of debtor’s monthly living expenses

Relevant debts are discharged about 90 days after filing unless the debtor is disqualified for failing to either disclose assets or follow court orders.

Should You File a Chapter 13?

Chapter 13 is a reorganization (of debt) bankruptcy. Currently, the fee is $235 with a $75 miscellaneous administration fee, payable to the court clerk upon filing.

One of the major advantages of chapter 13 is the possibility of saving your home from foreclosure. There is also a provision concerning consumer debt that can protect third party co-signers – possibly a spouse.

The debt is formally restructured into a consolidated loan by the court, with a chapter 13 trustee dealing with the creditors.

For chapter 13 bankruptcy in Oklahoma, an individual (and spouse) must have regular income and owe less than the financial threshold to qualify. If your debt exceeds this threshold, you may be able to file a Chapter 11 bankruptcy, which costs more and is a further complicated process.

The current threshold set by the U.S. Courts is $394,725 of unsecured debts and $1,184,200 of secured debts.

Hire a Bankruptcy Lawyer Today

You asked, “how do you file for bankruptcy?” We’ve shown you the main options, but you’ll need personal legal advice to address your specific circumstances. Don’t let your debts keep mounting up – reach out for professional financial assistance.

If you’re considering filing for bankruptcy in Oklahoma, we can help you. We are a law firm that specializes in bankruptcy and we choose to represent people instead of corporations and insurance companies.

Contact us today for a free consultation.

 If you’re looking at filing for bankruptcy, chances are you’re already pretty stressed out right now. Remember, you’re not by any means alone or the only person struggling.

An estimated 530,000 families in America file for bankruptcy each year due to things like overwhelming bills or medical problems.

We made our guide to walk you through everything, from ‘what is bankruptcy’ to how to file for bankruptcy in Oklahoma.

What Is Bankruptcy?

Beginning with the basics, bankruptcy is a legal process that allows an individual or couple facing overwhelming financial obligations to clear their debts.

It’s often confused with insolvency as the two are so closely related. But insolvency actually refers to the financial state of the individual. If you’re unable to pay debts you owe on time, you would be insolvent.

Once you’re considered insolvent, you would be able to choose to file for bankruptcy or other debt management and consolidation options.

As a legal process, filing for bankruptcy can be quite complicated. There’s a lot of paperwork, asset management, and discussions with creditors to do. This is why so many people opt to use a bankruptcy lawyer to help guide them through it.

Once you’ve been declared bankrupt, you will be considered discharged. This means you’re released from the debt obligations you had prior to filing. You would then be considered solvent again.

In the United States, there are many different types of bankruptcy referred to as chapters. The main three chapters are the ones we’ll cover – Chapter 7, 11, and 13.

Different Types of Bankruptcy

When you file for bankruptcy, you file under a particular code known as a Chapter. A person or organization would file under Chapter 7 to liquidate their assets and repay their debt obligations. A Chapter 7 filing means that all creditors would have to stop their collection efforts immediately.

Individuals filing under Chapter 13 will attempt to restructure their resources and income to pay off their debts. Only individuals and self-employed people can file for Chapter 13, not businesses.

Instead, businesses would file under Chapter 11. This bankruptcy code is only allowed for companies, not individuals. A Chapter 11 filing means that a company will attempt to restructure debts to meet its financial obligations.

For the purposes of this article, we’ll focus on individual bankruptcy processes. Let’s dive into Chapter 7 and Chapter 13 bankruptcy processes.

Chapter 7 Bankruptcy

As we mentioned above a Chapter 7 bankruptcy means you petition the court to ask that unpaid debts are wiped out. Most debts including credit card debt, medical bills, and civil judgments would be wiped out after a Chapter 7 bankruptcy.

While most debts would be wiped out, some are exempt from this. This includes things like student loans, most tax debts, and unpaid child support or alimony. If you have loans outstanding on a car that you own and want to keep, this would also not be wiped.

This bankruptcy code also stops collection agencies chasing after you and stops wage garnishment. The vast majority of people who file for Chapter 7 bankruptcy keep their property.

If you’ve previously filed for a Chapter 7 bankruptcy, you’ll be unable to file again for another 8 years. But you may be able to file a Chapter 13 bankruptcy instead.

Chapter 13 Bankruptcy

Unlike the above code, a Chapter 13 bankruptcy doesn’t clear all your debts. It’s more akin to a debt-consolidation. This means you’d pay back your debts in a manageable way over a period of around three to five years.

Most of the time, what you pay overall is less than what you originally owed. This is because you pay what you can actually afford to. The remaining debt is discharged, or in other words, erased.

Chapter 13 bankruptcies can be a little more complicated as much negotiation with creditors is needed. It’s generally the chosen option for those who want to protect co-debtors or have a property that needs to be protected.

To file for a Chapter 13 bankruptcy, you would have to be employed. This is because you have to agree to a payment plan which creditors believe you can and will stick to.

Other Important Considerations

Bankruptcy isn’t something that should be taken lightly, nor is it a simple solution to falling behind with bills. If you’re seen to be deliberately racking up large credit card debts just before you file for bankruptcy, these won’t be cleared.

In the same vein, debts you amount after filing for bankruptcy would not be erased. It’s also unlikely you’d be able to hold onto valuable assets such as a vacation home, expensive jewelry, or a motorhome.

As we mentioned above, you may only get a Chapter 7 discharge once every 8 years. But any bankruptcy discharge will stay on your credit report for 10 years.

It’s also important to remember that bankruptcy isn’t always the only option. There are many non-bankruptcy alternatives. These include things like negotiating with creditors or consolidation loans.

These options are best advised by a bankruptcy lawyer who knows your individual circumstances. They can help you plan out the best course of action to resolve your debts.

How Much Does Bankruptcy Cost?

There are several different fees debtors may be required to pay. This is unless they fall below a certain level of means to do so, then they would be exempt.

For the vast majority of those filing, they’d be liable to pay a $335 filing fee for Chapter 7 or a $310 filing fee for Chapter 13. As part of the bankruptcy process, both filings would require you to undertake a pre and post-bankruptcy course which is around $10 to $20 dollars each.

Get Bankruptcy Advice

We hope this guide has helped you and you can now answer the question what is bankruptcy with confidence. Whatever your financial situation, remember you’re not alone and there are experts who can help.

If you’re looking for advice or a bankruptcy lawyer in Oklahoma City, please get in touch for a free bankruptcy consultation.

Did you know that you can find a reputable bankruptcy attorney within minutes?

Bankruptcy is something that many people have to go through, but most are unaware of how to choose an attorney. While finding an attorney doesn’t take long, you need to know what to look for so that you can get an attorney that will suit your needs.

“So how do I find the best bankruptcy attorneys near me?” Fortunately, you don’t need to do much. We’ve put together a list of a few things you can do to save yourself the hassle of having to work with someone that isn’t compatible with you.

Read on to learn more about finding bankruptcy attorneys in Oklahoma!

Search on the Internet

When you need to find a bankruptcy attorney, one of the first things you should do is search online. This is much more effective than finding one in a physical location because it takes seconds to get results. All you must do is search for, “lawyers for bankruptcies near me.”

After you search for a bankruptcy attorney, you’ll see several websites. Some of these websites will be law firms and others will be lawyers’ personal websites. You’ll need to go through these sites until you find ones that offer the exact services you want.

It can be hard to tell how legitimate a lawyer’s website is, so you should search for more info about a website when you find one that interests you. You can do this later by looking up online customer reviews.

Make a List of Attorneys

After you’ve searched for sites, you should put together a list of several attorneys. Finding a bankruptcy attorney in Oklahoma won’t be difficult, but having a list of several will make it easier to get someone you want.

Without making a list, you won’t know who to reach out to if one of the attorneys you’re interested in can’t take your case.

When making a list, include the attorney’s website, name, and contact information. You should also note some of the services they offer. Write down the things that interest you about each attorney so that you can ask them questions when speaking to them.

Reach Out to the Attorneys

The next step to finding an Oklahoma personal injury lawyer or bankruptcy attorney is to reach out to the ones that interest you. This process is simple as all you must do is contact them via phone or email, whichever method they’ve listed on their site.

When you reach out to them, they’ll want to learn more about your case. You’ll need to know what type of bankruptcy you’re filing so they can determine if they’d be a good fit. If you haven’t filed yet, they can help you figure out which one would be best for you.

It’s best to choose an attorney that likes using the same contact method as you. For example, if you want to talk via phone calls, find one that also wants to. This will ensure that you and your attorney have consistent communication, preventing one another from missing information.

If everything goes well, you can meet them in person to discuss your case. However, keep an open mind because you’ll need to learn more about them before deciding to work with them.

Read Online Reviews and Get Referrals

One of the best ways to learn about a bankruptcy attorney is by reading online reviews and getting referrals. Both reviews and referrals will provide you with in-depth info about an attorney, but they differ in a few different ways.

Reviews

Google Reviews can be found as soon as you search for an attorney. Before clicking on their website, Google will provide some contact information, and the reviews will be listed below. You can then go through the reviews and see what people have to say about the attorney.

When going through reviews, check both positive and negative ones. You shouldn’t focus on the positive reviews because there may be some things in the negative ones that will make you not want to work with an attorney. It’s best to know why someone had a bad experience with someone.

Check as many as you can to get a good idea of what the attorney is like. If you have a specific question that you’d like to get some info on, you can search for it within the reviews. Type in the keywords that you want and you’ll only see reviews containing them.

Referrals

If you know someone that’s worked with a bankruptcy attorney, ask them about their experience. Getting a referral can often benefit you more than reviews can because you can get much more information. However, you should use both to determine whether you want to work with an attorney.

Ask your referrer about finding bankruptcy attorneys in Oklahoma. Use the same methods that they used so you can also find someone that suits your needs. Find out about which services their attorney provided and how much they had to pay. From there, you can look online for the same attorney and decide if you want to work with them.

Start Looking for a Bankruptcy Attorney Today

After reading this article, you now know several tips that will help you choose the right bankruptcy attorney for you. We encourage you to start looking as soon as possible so that you can go forward with your case. Without an attorney, you’ll have a hard time in the courtroom.

Contact us to learn about how we can help you with your bankruptcy case.