In Oklahoma, bankruptcy is a viable choice for settling debts and preventing lawsuits. An automatic stay applies to both chapters of bankruptcy according to the duration of the case. It is beneficial for consumers who have received threatening letters from creditors or collection agencies. A local attorney outlines important details about filing for bankruptcy.
Choosing the Most Suitable Chapter
Consumers who qualify for chapter 13 bankruptcy have the option to choose chapter 7 instead. A comparison of the two chapters and the consumer’s current financial status determines what chapter meets their needs more appropriately. The duration and expectations of the chapters help the consumer make the most suitable decision for them.
What are the Advantages of Chapter 7?
The advantages of chapter 7 bankruptcy include an automatic stay of up to six months. Some consumers become debt-free at the end of the claims. The cases don’t take as long as chapter 13 bankruptcy. Consumers pay a fee for filing for bankruptcy and won’t face any further charges.
Can the Consumer Choose What Assets are Sold?
No, consumers don’t have any control over what assets are sold through the bankruptcy court. The court reviews all assets owned by the consumer and chooses the most suitable options. In most cases, the primary home is protected through the homestead exemption. However, some consumers might choose to sell their current property and eliminate the debt altogether. Any proceeds left over from the sales are returned to the consumer at the end of the bankruptcy case.
Is the Consumer Eligible for Additional Bankruptcies?
Yes, a consumer has the option to start a new bankruptcy case after they complete the initial claim. Consumers who qualified for both chapters could choose to start a new chapter 13 bankruptcy if they didn’t settle all their debts previously.
In Oklahoma, bankruptcy is a beneficial way for consumers to get out of debt and start over. Chapter 7 provides a clean slate if the consumer has adequate assets to sell and settle their debts. Chapter 13 is a structured repayment plan that is paid over the course of three to five years. Consumers who want more details about bankruptcy visit https://tulsabankruptcylawyers.net/bankruptcy-attorney-tulsa-chapter-7-bankruptcy/ for more information right now.