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What to do if the Bankruptcy Court Orders You to Repay a Debt

There are certain situations in which, when filing for Chapter 7 bankruptcy in Oklahoma, the bankruptcy court may order you to repay a specific debt. This means that this particular debt will not be discharged in the Chapter 7 bankruptcy, and will be owed to the individual until it is paid in full. This may come as unwelcome news for some people who borrowed a large amount of money prior to filing for Chapter 7 bankruptcy, and are now faced with an unpayable debt that cannot be discharged in bankruptcy. If you find yourself in this difficult situation, it’s a good idea to enlist the help of a qualified bankruptcy attorney in Oklahoma so you are fully aware of all your options. Here at Oklahoma Legal Center, our lawyers understand how difficult it can be for debtors to remain aware of every aspect of a bankruptcy filing, which is why we are here to help. Contact our Oklahoma City-based law firm today for experienced legal help.

Ordered Repayment Means Debt Won’t be Discharged

The following is a good example of a situation in which the bankruptcy court may order you to repay a debt: if you borrow money from a friend or relative and then file for Chapter 7 bankruptcy relief shortly afterward, the person who loaned you money may argue that you borrowed the money with no intent to pay it back. If, upon consideration of this argument, the bankruptcy court determines that this debt must be repaid by you, the debtor, it will not be discharged in your Chapter 7 filing, and can’t be discharged in any future Chapter 7 filings. Under these circumstances, filing for Chapter 13 bankruptcy in Oklahoma after a Chapter 7 case is complete may be your best course of action. Although a Chapter 13 filing won’t discharge the debt either, it will allow you to establish a repayment plan based on your income and expenses over a period of three to five years. If, at this time, the debt still isn’t fully paid, you can file a new Chapter 13 and create a new repayment plan based on the amount of the debt that is still owed.

Consult Our Bankruptcy Attorneys for Help

There are considerable differences between Chapter 7 and Chapter 13 bankruptcy filings in Oklahoma, and each option works in its own specific way to help Oklahomans relieve or repay overwhelming debts. The main difference is that, in Chapter 7 bankruptcy (also called liquidation), your debts are discharged by the bankruptcy court. On the contrary, in Chapter 13 bankruptcy, a repayment plan is created to help you pay back your debts over time. If you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Oklahoma City, or elsewhere in Oklahoma, consult our knowledgeable attorneys at Oklahoma Legal Center today. Our team of skilled bankruptcy lawyers has extensive experience handling bankruptcy cases throughout Oklahoma, and will work diligently to help you determine the right course of action for your individual financial situation.

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