How to File Chapter 13 Bankruptcy in Oklahoma
Chapter 13 bankruptcy, also known as a reorganization or wage earner’s plan, may be an option for debtors who want to keep their assets and are willing to make adjustments to how they manage their money and pay back creditors. Oklahoma residents considering this form of debt relief should understand what makes it different from other types of bankruptcy before taking this step. Here are the basics of Chapter 13 bankruptcy in Oklahoma.
1) What Is a Chapter 13 Bankruptcy
Chapter 13 is a way to restructure your debt. It allows you to keep all of your property, but allows your creditors to take some of it in order to help you pay back what you owe. Chapter 13 bankruptcy is sometimes called wage earner’s plan or reorganization bankruptcy.
2) Who Can File
All individuals who earn income in Oklahoma can file Chapter 13 bankruptcy to reduce their debt, even if they don’t live in Oklahoma. In fact, out-of-state residents file Chapter 13 more frequently than resident debtors. To learn more about how to file Chapter 13 bankruptcy in Oklahoma from an experienced lawyer contact us.
3) What Are Debts Covered Under A Chapter 13 Bankruptcy
A Chapter 13 bankruptcy can also be used to repay certain debts over time. This is called a repayment plan, and your bankruptcy attorney will be able to explain how it works. If you own real estate or personal property that has equity in it (such as a car), you will need to complete a form called Schedule B when you file your paperwork. The court will keep possession of these assets and sell them if necessary to pay creditors according to your repayment plan.
4) What Happens When I Start My Case
When you file for Chapter 13 bankruptcy in Oklahoma, there’s a set schedule of events to follow. You must file an initial document with your court and make all payments as directed. Once completed, you’ll get a discharge of your debts. The plan will last for three to five years and payments will be determined based on your income. At first, it’s likely that all or most of your disposable income will go toward paying off creditors.
5) Am I Eligible For A Discharge
In order to be eligible for a Chapter 13 bankruptcy, you must not own nonexempt property and must meet certain requirements (which vary from state to state). In Oklahoma, for example, you may only file for Chapter 13 bankruptcy if you earn less than your state’s median income. If you fall into these criteria, then that means filing a Chapter 13 bankruptcy is possible in Oklahoma. But if not?
6) Should I Get An Attorney
If you need to file Chapter 13 bankruptcy in Oklahoma, contact an attorney to help. You should make sure you choose a lawyer that is experienced in bankruptcy law and not just one who advertises as a bankruptcy attorney in Oklahoma.
7) Filing Fees & Costs
There are only a few requirements to file bankruptcy in Oklahoma: you must be 18 years old or older and an Oklahoma resident, and you cannot have already filed for bankruptcy in any other court. Additionally, your income must not exceed certain thresholds, which will depend on your family size. If you meet these requirements and wish to file Chapter 13 bankruptcy in Oklahoma, all it takes is about two hours at most to complete.
8) Required Schedules, Statements, and Forms
Chapter 13 bankruptcy is a powerful tool for getting control of your debt and getting back on track financially. It allows you to consolidate your debts, negotiate with creditors, and repay them in full or in part through a Chapter 13 repayment plan. If you meet certain requirements and file correctly, you may be able to avoid repaying your debts in full while continuing to use all of your property as before. Filing bankruptcy is never easy; it’s best to consult an attorney if possible.
