What is a Chapter 7 bankruptcy?
Chapter 7 bankruptcy, sometimes called “liquidation,” is a situation in which the debtor turns over all non-exempt property to the bankruptcy trustee, who then converts it into cash to be distributed to the owed creditors. Chapter 7 bankruptcy effectively “wipes out” debts, thereby giving the debtor a fresh start.
What is a Chapter 13 bankruptcy?
Chapter 13 bankruptcy is essentially a reorganization of debts to be paid off over a period of three to five years. This type of bankruptcy may appeal to debtors who have non-exempt property that they wish to keep, and is only available to individuals who have predictable income that is sufficient to pay their reasonable expenses while leaving some left over to pay their debts.
Will my spouse be affected if I file for bankruptcy?
Your spouse will not be affected by your bankruptcy filing as long as he or she is not responsible for any of your debt, meaning your husband or wife didn’t sign a contract or agreement. If your spouse has a supplemental credit card, for example, he or she may be held responsible for that credit card debt.
How much am I allowed to keep?
When you file for bankruptcy, you are allowed to keep certain assets, depending on your state’s regulations. In Oklahoma, state exemptions include your homestead, an automobile worth up to $7,500, all cemetery lots, 75% of weekly earnings earned in 90 days, all farm animals, up to $2,000 worth of guns, up to $4,000 worth of clothing, 100% of household furniture, all books and pictures, all professionally-prescribed health aids, and up to $10,000 worth of farming tools.
Can I keep my credit cards if I file for bankruptcy?
Whether or not the debtor can keep his or her credit cards after filing for bankruptcy is up to the credit card company. If you are discharging a credit card debt, the company may cancel the card, even if you have a zero balance.
When will I be discharged from bankruptcy?
One of the main purposes of bankruptcy legislation is to give an individual struggling with debt the opportunity to get a fresh financial start. Therefore, the debt is erased once the debtor is discharged, which typically occurs three to five months after bankruptcy is filed. At that time, all debts (with some exceptions) are written off.
Will I ever get credit again?
Bankruptcy isn’t the end of the world, and it certainly isn’t the end of credit. Some banks now offer “secured” credit cards where a debtor puts up a certain amount of money in an account to guarantee payment. Two years after a bankruptcy discharge, debtors are eligible for mortgage loans on terms as good as those with the same financial profile who have not filed for bankruptcy. Your bankruptcy will stay on your credit report for ten years, but it becomes less and less significant as the years go by.
I’ve already filed for bankruptcy. When can I file again?
In Oklahoma, if you have previously filed a Chapter 7 bankruptcy, you must wait eight years before you can file another Chapter 7 bankruptcy and four years before you can file a Chapter 13 bankruptcy. If you have previously filed a Chapter 13 bankruptcy, you must wait two years before you can file another Chapter 13 bankruptcy and six years before you can file a Chapter 7 bankruptcy.
Your Oklahoma Bankruptcy Questions Answered
What is a Chapter 7 bankruptcy?