Clients call us asking which bankruptcy should I file in Okmulgee County? The answer’s easy after you answer a few simple questions. Most bankruptcies are filed under Chapter 7 or Chapter 13. Regardless of which bankruptcy you file the process is easier than you think. Not only do you get rid of most of your unsecured debt you get piece of mind. No longer are you forced to look over your shoulder for debt collectors. And, if you own a house car or many other assets you get to keep them Also, if your paycheck is being garnished or your tax return is being taken the bankruptcy will end that too.
Filing Chapter 7 in Okmulgee County
Chapter 7 bankruptcy is often referred to as a fresh start bankruptcy. To file a chapter 7 you must pass the means test, which looks at your income, assets and expenses. The reason people file Chapter 7 bankruptcy is to get a discharge. A discharge is a court order which states that you do not have to pay most of your debts. This is a fresh financial start.
Discharged debts include your general unsecured debts. This includes credit cards, signature loans, medical bills and most other unsecured debt. With some limited exceptions, there are some debts which cannot be discharged. These include certain taxes, child support, alimony, student loans, court fines and criminal restitution. You can only receive a chapter 7 discharge once every eight (8) years. Chapter 7 bankruptcies are usually meant for debtors with lower income. If you have more disposable income you may choose to file a Chapter 13 bankruptcy.
Chapter 13 in Okmulgee County
Chapter 13 bankruptcy is often referred to as a reorganization bankruptcy. Generally its for debtors with higher income or those facing a foreclosure. You may choose to file a Chapter 13 if for example you get behind on the mortgage on your house. Under Chapter 13 you can save your property but you must agree to pay part of your income to your creditors.
The Okmulgee bankruptcy attorneys Kania Law office help you make a payment plan which is usually three (3) to five (5) years long. The court must approve your repayment plan and your budget. Your property is protected from repossession and creditors, including mortgage and other lien holders, as long as the proposed payments are made.
Stop All Collection Activity
An important feature that applies to all types of bankruptcy filings is the automatic stay. The automatic stay is triggered by filing your petition for bankruptcy. The stay acts as a bar to most lawsuits, repossessions, foreclosures, evictions, garnishments, attachments, utility shut offs and debt collection activity. In most circumstances, creditors cannot take any further action against the debtor or his/her property without permission from the bankruptcy court.
Filing Your Bankruptcy Case
In many cases, Chapter 7 bankruptcy is a better fit than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three- to five-year Chapter 13 repayment plan. However some circumstances simply dictate that you file a chapter 13 bankruptcy. When deciding which bankruptcy should i file, call Okmulgee attorneys for a free consultation. Bankruptcy doesn’t have to be so hard.