Oklahoma Bankruptcy Lawyers Provide Consumer Relief
Bankruptcy protection is a system of laws and an option for relief that exists for both consumers and business entities, and while many of the notions behind this form of relief are essentially the same regardless of the nature of the debtor, there are important differences both between consumer bankruptcy and commercial bankruptcy and the choices within the realm of consumer bankruptcy.
Below you’ll find an overview of consumer bankruptcy. You’ll find information regarding the types of consumer bankruptcy relief available, examples of information that’s used to make a decision regarding the type of consumer bankruptcy to file, the benefits of taking this sometimes difficult step and finally how you should proceed if you find yourself unable to shake free from your ongoing financial struggles.
Types of Oklahoma Consumer Bankruptcy
The United States Bankruptcy Code contains several different chapters, and when a consumer faces financial problems that simply cannot be overcome, there are two chapters that are used more than any others for relief. Each chapter in the code deals with a different type of bankruptcy filing, and below are the two chapters primarily used for consumer bankruptcy filings:
- Chapter 7 – Chapter 7 of the United States Bankruptcy Code deals with the rules, regulations, standards and process involved with one type of consumer bankruptcy. Chapter 7 filings are commonly known as ‘liquidation’ bankruptcies because that’s essentially how a case plays out – the debtor files for relief and the court liquidates the consumer’s assets to satisfy the existing creditors as much as possible. While Chapter 7 bankruptcy filings are relatively simple compared to other forms of bankruptcy, there are still several particularities that need to be considered when moving forward with this type of consumer bankruptcy.
- Chapter 13 – Chapter 13 of the United States Bankruptcy Code deals with all of the rules, regulations and procedures that govern the other prominent type of consumer bankruptcy filing, and a Chapter 13 filing is generally known as a ‘wage earner’s’ bankruptcy because it is usually the choice of filing made by those debtors who are not without income and who are somewhat able to make payments to existing creditors.