Filing a chapter 7 bankruptcy in Oklahoma isn’t as difficult as many people think. If you’re in debt over your head and struggling to make ends meet, filing for Chapter 7 bankruptcy in Oklahoma may be a perfect fit for you. Chapter 7 bankruptcy allows eligible people just like you to discharge most unsecured debts. This includes things like credit cards, medical bills, repossessions foreclosures and payday loans.
Determine Your Eligibility To File
The most important thing you need to know about filing a chapter 7 bankruptcy is that you have to qualify. To qualify to file, you must meet the following requirements:
Passing the Means Test
The means test evaluates your income and expenses to determine if you have enough disposable income to repay your debts. It compares your household income to the median income for a similarly sized household in Oklahoma. If your income is below the median, you qualify. If it’s above, further calculations will determine if you can file under Chapter 7 or if you must consider Chapter 13.
Prior Bankruptcy Filings
If you have previously filed for bankruptcy, you must wait a certain period before filing again. Specifically, you must wait eight years if you previously received a Chapter 7 discharge. The eight year period begins to run beginning the day you last filed.
Credit Counseling Requirement
There are two credit counseling course you must take. Both are online courses and very easy to get done. One must be taken before you file while the second is taken after. Both course must complete a credit counseling course from an approved agency. Your bankruptcy attorney provides you with the online course options. The session helps assess your financial situation and must be completed within 180 days before filing.
Gather Necessary Documentation
To file for Chapter 7 bankruptcy in Oklahoma, you will need to collect and submit several financial documents, including:
- A list of all your creditors and the amount owed. Your bankruptcy attorney will help facilitate this for you.
- The last six months of pay stubs or a payroll report. This is easily provided to you through your payroll department at work.
- Tax returns for the past two years
- Last six moths of checking and saving account bank statements
- A list of your assets and property
- Monthly living expenses
- Any documentation related to debts, lawsuits, or foreclosures
File Bankruptcy Forms and Pay Fees
You must complete and file bankruptcy forms with the U.S. Bankruptcy Court for the Northern, Eastern, or Western District of Oklahoma, depending on where you reside. These forms include detailed information about your debts, assets, income, and financial transactions.
A filing fee of approximately $338 applies, though you may request a fee waiver or payment plan if you qualify based on low income.
Attend the 341 Meeting of Creditors
After filing, the bankruptcy trustee assigned to your case will schedule a Meeting of Creditors, also called the 341 hearing. Although its called a meeting of the creditors rarely is it that a creditor attends. At this meeting:
You must answer questions under oath regarding your finances and bankruptcy petition. Very simple questions mostly related to the form you and your attorney submitted.
- Creditors may attend but often do not.
- The trustee will verify the accuracy of your paperwork and assess whether assets can be liquidated to pay creditors.
Receive Your Discharge and Close Your Case
If all requirements are met and no objections arise, the court will issue a discharge order, eliminating qualifying debts. This usually takes place 50 days after the meeting of the creditors. Its important to realize that while your case is open the creditors are stayed from collecting money from you or calling you to collect any money. Certain obligations, such as child support, alimony, and most student loans, cannot be discharged in bankruptcy.
Key Considerations for Chapter 7 in Oklahoma
- Exemptions: Oklahoma has generous bankruptcy exemptions, allowing you to protect essential assets like your home, vehicle, and personal property.
- Effect on Credit: Chapter 7 bankruptcy stays on your credit report for ten years but provides an opportunity to rebuild your financial standing.
- Alternatives: If you do not qualify for Chapter 7 or wish to retain more assets, Chapter 13 bankruptcy may be a better option.
Get Help From a Tulsa Bankruptcy Attorney Near You
Filing for Chapter 7 bankruptcy in Oklahoma is a very powerful tool. It can be used to eliminate all or the majority of your unsecured debt. Filing a chapter 7 bankruptcy can also help you get a fresh start on rebuilding your credit and restoring your financial well being. Get a Free consultation from a Tulsa County Lawyers Group bankruptcy attorney by calling 918.379.4864. Or you can ask an online bankruptcy question by following this link.
