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Top Ten Bankruptcy Myths Debunked by an Oklahoma Bankruptcy Attorney

Filing for bankruptcy in Oklahoma is a big decision, and it’s important that you know everything you can about the process beforehand. This includes learning which Oklahoma bankruptcy rumors you’ve heard are true and which are just hearsay. The following is a list of the top ten bankruptcy myths out there and an explanation by an Oklahoma bankruptcy lawyer. If you are considering filing for bankruptcy in Oklahoma, contact our experienced bankruptcy attorneys at Oklahoma Legal Center to discuss your legal options.

Since I have filed bankruptcy before, I can’t file again. False. There is an eight year period between filing Chapter 7 bankruptcies, but you may still be able to file a Chapter 13 bankruptcy in Oklahoma and receive a discharge of debts. Even if you can’t receive a discharge in a Chapter 13 bankruptcy, you may be able to file a Chapter 13 bankruptcy for immediate relief or to stop a foreclosure.

I can’t file bankruptcy in Oklahoma because I make too much money. Changes to the Oklahoma bankruptcy law in 2005 created a means test for Chapter 7 qualification, but even if you make too much money to take this route, you may be eligible to file Chapter 13 bankruptcy for debt relief.

Only people that purposely abuse their credit cards or have no financial responsibility file bankruptcy. In most cases, people who decide to file for bankruptcy in Oklahoma have simply experienced a difficult time during which their debt became overwhelming. A death in the family, divorce, major illness or loss of a long-term job are all factors that can lead to bankruptcy.

I get to keep my mortgaged property without having to pay for it. Keep in mind that bankruptcy gets rid of debt, not liens. If you want to keep property like your home and car, you have to keep the debt as well. If you give back the property however, the debt will be discharged in the bankruptcy filing.

If I file for bankruptcy, I will lose my home, car and other property. Bankruptcy laws in your state dictate exemptions, which keeps certain property out of the bankruptcy estate and allows you to keep it. In Oklahoma, for example, those who file Chapter 7 bankruptcy are allowed to keep one automobile worth up to $7,400, $4,000 worth of clothing and their principal residence, among other property. If you have property that is not exempt, you can still keep the property under a Chapter 13 bankruptcy.

I will never be able to secure credit again. You may find it easier than you thought to get credit again after filing for bankruptcy, and you can even get car and home loans, although you may not be eligible for home loans for one to two years after your bankruptcy is complete. Be extremely careful when rebuilding your credit though, and choose your credit wisely to avoid putting yourself in another compromising financial situation.

I can’t file bankruptcy because my debt includes past-due taxes, medical bills and utilities, not credit cards. Although bankruptcy does not eliminate some types of debt, including alimony, student loans and child support, you don’t have to just have credit cards to file for bankruptcy in Oklahoma. Bankruptcy will, in fact, discharge debt from medical bills, payday loans, past-due utility bills, and many other types of debt. If your debt is a type that cannot be eliminated, you might still be able to control it by filing a Chapter 13 bankruptcy.

I want to file bankruptcy, but my spouse won’t let me because his/her credit is good. You can file an individual bankruptcy, which wouldn’t affect your spouse’s credit. However, if your spouse is liable for any of the debts, even though you will no longer be responsible for the debt, your non-filing spouse will be.

It’s too late for me to file – my wages are already being garnished, my car has been repossessed, or my property has already been foreclosed on. It’s not too late. Filing for bankruptcy puts an “automatic stay” into effect, which stops all collection activity against you. Contact an Oklahoma bankruptcy attorney immediately, as you may be able to get your property returned. Even if you can’t, filing for bankruptcy will eliminate any deficiency amount that you owe.

My credit will be ruined. Filing for bankruptcy does stay on your credit report for ten years, but it may be the only way to control your financial situation and relieve your debt. While the initial bankruptcy filing may lower your credit filing, it will discharged most debts and give you the opportunity to make a fresh start and rebuild your credit.

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