Filing bankruptcy in Oklahoma is something most people do not want to think about or talk about. It is something that a lot of people see as complete failure and disaster.
Even though it is something that you probably do not want to think about or consider, you may have reached a point where it is impossible to pay your debtors. If this is true, it is an option that you may need to look into.
It may help to have a clear understanding of what bankruptcy is. Bankruptcy is defined as, “a legally declared inability or impairment of ability of an individual or organization to pay its creditors.” It is legal insolvency. Bankruptcy is a legal surrender of your remaining assets into the hands of your creditors.
In the United States, bankruptcy is placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact “uniform laws on the subject of bankruptcies throughout the United States.” The Congress has enacted statute law governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.
Bankruptcy cases are always filed in United States Bankruptcy Court, which is an adjunct to the U.S. District Courts. However, bankruptcy cases, particularly with respect to the validity of exemptions and claims, are often dependent upon law. Because of this, it is usually not possible to generalize bankruptcy law across state lines.
For this reason, it is important for you to know the laws regarding bankruptcy of the state that you live in. If you plan on filing bankruptcy in Oklahoma, you need to know the laws as they relate to you in filing an Oklahoma bankruptcy. You will probably need the help of an Oklahoma bankruptcy lawyer who can help you understand how Oklahoma bankruptcy laws will affect your case.
Chapter 7 is the form of personal bankruptcy that is usually filed in Oklahoma. In Chapter 7, a bank trustee takes over your non-exempt property. He or she then liquidates (sells) your property. The money from the sale of your property is then distributed to your unsecured creditors. You have some of your doubt erased in return for this.
Chapter 13 is a different type of personal bankruptcy that is also filed in Oklahoma. In Chapter 13, you get to hold on to possession and ownership of all of your assets. Your part, then, is to have some part of your future income designated to pay back your creditors. This usually takes three to five years.
Chapter 7 is what most people are thinking about when they think of bankruptcy. It is called “straight” or “liquidation” bankruptcy. After you meet with a bankruptcy trustee, you can wipe out most of your unsecured debt. The bankruptcy trustee liquidates your non-exempt assets so that as much of your unsecured debt as possible can be paid off. He or she then discharges (forgives) the balance of your dischargeable debt.
The good thing about Chapter 7 is that many of the people who file it do not have any non-exempt property. There is nothing to liquidate. So, you do not lose anything.
Chapter 13 is not the same as Chapter 7. It is known as “reorganization” or “rehabilitation” bankruptcy. Instead of having your debt discharged, Chapter 13 is a repayment plan that is based on your income, living expenses and debts. This plan lets you make regular payments to your debtors over a three to five year period while you continue to keep property like your car and home.
Chapter 7 probably sounds a lot better to you. Depending on your circumstances, Chapter 13 may actually be the right type of bankruptcy that you need to file. Chapter 13 is probably better if you have regular income that is enough to pay your normal debts, but some kind of financial catastrophe has hit you like unexpected medical bills or uninsured financial losses. If you have a good income, but an emergency has struck you, Chapter 13 is probably the way to go.
If you do not qualify to file Chapter 7 in Oklahoma, your only option is Chapter 13. Generally, if your income is below the median income for a family your size in Oklahoma, you are eligible to file Chapter 7. In some cases, you can file Chapter 7 if your income is above the median.
If you are qualified to file Chapter 7 in Oklahoma, only state exemptions are allowed. You cannot use federal supplemental exemptions in Oklahoma.
An Oklahoma bankruptcy attorney can show you whether you are eligible to file Chapter 7. Your Oklahoma bankruptcy lawyer can also help you decide whether to file Chapter 7 or Chapter 13, if you are qualified to file either one.
Bankruptcy is a specialized field of law. You need the advice and counsel of someone who undertands this area of law.
This is what an Oklahoma bankruptcy attorney does. Oklahoma bankruptcy lawyers work with bankruptcy cases on a daily basis. They have to keep up with the latest changes and updates that take place in Oklahoma bankruptcy law.
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