Chapter 7 Bankruptcy – Liquidation of Debt
Filing a Chapter 7 bankruptcy in Oklahoma is typically referred to as “liquidation,” because it involves debtors liquidating their assets and giving up all “non-exempt” property in order to eliminate unsecured debt. Unlike Chapter 13 bankruptcy, Chapter 7 can effectively discharge a consumer’s debts, which means they do not have to be repaid in the future. In return for having unpayable debts forgiven under Chapter 7 bankruptcy though, the debtor must give up certain types of property, excluding “exempt” assets like certain retirement or pension plans, the cash value of a life insurance policy, a mobile home that is the debtor’s principle residence, federal earned income tax credit, and other items like household furniture and wedding and anniversary rings.
Chapter 13 Bankruptcy – Reorganization of Debt
An option that is very different from Chapter 7 bankruptcy is Chapter 13, often referred to as a “reorganization” of one’s debts. Chapter 13 bankruptcy essentially establishes a repayment plan that allows a debtor with regular income to organize past-due balances and pay back his or her debts over time. Chapter 13 may be a good option for consumers are don’t qualify for Chapter 7, or for whom Chapter 7 bankruptcy doesn’t address specific problems. Fortunately for consumers, the repayment plan associated with Chapter 13 bankruptcy is based on what a debtor can pay each month, not on what he or she owes creditors. Chapter 13 bankruptcy is a good solution for debt in the form of back taxes, past-due student loans, and for preventing home foreclosure or vehicle repossession.
Contact Our Bankruptcy Lawyers Today
The process of filing a Chapter 7 or Chapter 13 bankruptcy in Oklahoma can be confusing, especially if you are unsure what these two options entail and how they can benefit you in the long run. If you are considering filing for bankruptcy in Oklahoma, don’t leave the outcome of your case up to chance. Contact our reputable bankruptcy lawyers at Oklahoma Legal Center as soon as possible for qualified legal help. Our bankruptcy lawyers have extensive experience helping consumers rid themselves of unpayable debt or develop a fair repayment plan to pay back debts in a reasonable amount of time. With the help of our knowledgeable bankruptcy attorneys at Oklahoma Legal Center you can start fresh and significantly improve your financial situation.