Filing for bankruptcy can sometimes be a scary process. Although, despite this, knowing a few points about Oklahoma bankruptcy might be extremely helpful to lessen this fear. The following information is a simple overview relating to this extensive legal process.
While it is true the US Bankruptcy Code is the main building block to every state law dealing with this financial legality issue, different aspects to the laws will change between states. There exist certain and pinpointed things that can vary greatly. A few of these concepts deal with the median income rate and which properties individuals own that are exempt from the proceedings. This fact is true for Oklahoma, too.
There are many different kinds of bankruptcy. These types are noted by a chapter and number. This is not complicated to understand, though, because it merely is a reference to the chapter of the Bankruptcy Code. While there exist several chapters, the following is a sampling of the two most typical.
One widely known type of bankruptcy is known as Chapter Seven. In some cases this can be called total liquidation, too. Within Chapter Seven, a trustee of the court is designated to supervise the nonexempt property an individual owns. This is property is collected and sold, where the money gained from its sale is then given to the relevant creditors and any other debt remaining is eliminated.
Many people typically fear this kind of bankruptcy since its description of confiscated property seems overly intimidating. Although, despite its ominous undertones, this is not the case at all. Generally all states, Oklahoma included, allow debtors to keep their fundamental property, like a home and a car.
The other commonly known bankruptcy type is called Chapter Thirteen. This type is also referenced as being known as reorganization. In reorganization, the debtor follows a court appointed payment plan for about five years. As such, their income and living costs are used to calculate the plan. This chapter is also for families and individuals, too, although it excludes farmers and fishermen. These types of people utilize Chapter Twelve, which is specific only unto that group.
For Oklahoma citizens wanting to file, figuring which chapter they are eligible for, as well as meeting with their lawyer, are two important aspects to this legal issue. If a citizen has an income of less than $38,929 they will be eligible for Chapter Seven. If they meet or exceed that income level, they will then qualify for Chapter Thirteen. There are various income levels for different situations, like people that are married and married individuals with children.
There is a lot of information, both detailed and general, that surrounds filing bankruptcy. Oklahoma bankruptcy does not have to be a complicated or stressful endeavor. Knowing just a few overview points to the system lets debtors have a better understanding of this concept.
Joseph St. James is not an attorney and cannot provide legal advice. For legal advice specific to your circumstances call a bankruptcy lawyer in Oklahoma. For additional information on chapter 7 bankruptcy you can call the Debt Line Law Office at (888) Debt-Line.
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