Bankruptcy Facts and How to File
Bankruptcy is a federal law that allows certain people under certain circumstances to reduce or eliminate their debt. The bankruptcy law is contained in Title 11 of the United States Code. As part of bankruptcy law individual states are allowed to either expand or limit bankruptcy rules in an effort to address local concerns. Oklahoma has done this and many would say that Oklahoma has enacted some of the most liberal bankruptcy laws in an effort to protect its citizens.
Where do I File my Bankruptcy:
Some of the most important bankruptcy information Oklahoma is where your case will be filed. Jurisdiction is what controls where your case is filed. Because Title 11 of the Federal Bankruptcy Code controls bankruptcy cases the case is heard in federal court. In Oklahoma there are three different Federal District Courts that your case may be filed in. The courts include the Northern District in Tulsa, the Eastern District in Okmulgee and the Western District in Oklahoma City. As a result, which court you file your case in depends on where you live at the time you file. In order to file a bankruptcy in Oklahoma you must have lived in the State for six months before you can file.
Bankruptcy Information Oklahoma – Different Kinds of Bankruptcy
Chapter 7 bankruptcy in Oklahoma – Chapter 7 bankruptcy is a form of consumer bankruptcy that will forgive a large portion of your unsecured debt. Unsecured debt is that debt that you have not pledged any security for in exchange for the money you borrowed. This includes debt associated with things such as credit cards, medical bills, repossessions, foreclosures and payday loans. Secured debt is that debt that is secured by the assets which was purchased with the money you borrowed. An example of secured debt is your house and your car. To file a chapter 7 bankruptcy you have to qualify. One of the major qualifications is that you don’t make too much money. This is called the means test. Essentially, the means test requires that your income is at or below the median income for a family your size
If you file a chapter 7 you will have the option of keeping those assets that are secured by simply continuing to pay the debt and keeping the assets. As to your house you can keep the house and reaffirm the debt. The same option is available for your car and all other secured assets.
Chapter 13 Bankruptcy in Oklahoma
Chapter 13 bankruptcy is a provision in the Federal Bankruptcy Law. A chapter 13 bankruptcy is for those people who don’t qualify for a chapter 7 bankruptcy. The primary reason people file a chapter 13 is because they make more money than is allowable in a chapter 7. For example, if the median family income is $43,000 for a family of one and you make $75,000 you make to much to qualify for a chapter 7. In this case the chapter 13 provision of the bankruptcy code will offer you some relief.
Tulsa Chapter 13 Bankruptcy Repayment Plan:
In a chapter 13 bankruptcy you must pay back a certain percentage of your unsecured debt. This repayment is done over a three to five year period of time. Further, the amount of the payment will depend on a budget thats part of Chapter 13. The budget considers your family size and total debt. It also takes in to account your income and disposable income after your bills are paid. An example is that if you have $100.00 in debt and your budget based on your income and family size only allows you to pay 40% of the debt. If this is the case you must make a monthly payment equaling 40% of the debt for 5 years. Any portion remaining after the 5 year repayment period discharges.
Do I Qualify For a Chapter 13 in Oklahoma:
To qualify for a chapter 13 you must have employment. This is because the chapter 13 requires you to repay a part of the debt. The payment occurs through a wage order. The wage order directs your employer to pay the payment due directly to the court. Once the court gets the money from the wage order it pays it per their share to your creditors.
Chapter 13 bankruptcy has whats called a feasibility test. So, in order to qualify you must be able to show that you will successfully complete the repayment plan in the time period. A chapter 13 requires confirmation of the plane. This is done through the court and the bankruptcy trustee. The trustee in your case is in either Tulsa, Okmulgee or Oklahoma City. The location depends on where you live at the time we file your case.
Can I Keep My House in an Oklahoma Chapter 13:
The answer is absolutely yes you can keep your home if you file an Oklahoma Bankruptcy. One good thing about a chapter 13, unlike a chapter 7, is that if you have unpaid mortgage payments and are facing foreclosure the chapter 13 will stop the foreclosure process. The portion that is late is set up in your repayment plan and is paid out over the term of the bankruptcy. You will be required to continue with the future payments as set in the original mortgage agreement.