In Oklahoma, consumers choose one of two chapters of bankruptcy in most cases. Chapter 7 is based on the total value of all assets accumulated by the consumer. Chapter 13 requires the consumer to qualify according to their current annual income. An attorney helps consumers choose the chapter that meets their needs the most.
Qualifying for Bankruptcy
Consumers who want to qualify for any chapter of bankruptcy must provide six months worth of income statements. Next, they must provide all details about the assets they own. Finally, the attorneys review the total volume of debt incurred by the consumer. To qualify for chapter 7, the consumer must have enough assets to sell and generate adequate proceeds for paying off their debts. To qualify for chapter 13, the consumer must have a household income that exceeds the current median for their county.
Preliminary Requirements for Bankruptcy
All consumers who file for any chapter of bankruptcy are required to complete a state-approved credit counseling programs. The programs prepare the consumers for their chapter of bankruptcy and explain better techniques for managing their debts in the future.
What to Expect from Chapter 13
Chapter 13 bankruptcy is a more structured repayment program. The consumer pays the court monthly payments according to their plan. All payments are submitted on the same day of the month. All disposable income is used to pay for debts that were not included in the bankruptcy claim. The automatic stay lasts between three and five years.
What to Expect from Chapter 7
During chapter 7, the consumer surrenders ownership of the selected assets to the court. A trustee manages the sale of all assets and collects proceeds from buyers. The proceeds are distributed to the creditors to pay off the debts entirely. The automatic stay lasts no longer than six months.
In Oklahoma, consumers file for bankruptcy when they are facing overwhelming debts and cannot repay them through traditional means. When filing for any chapter, the consumer must qualify according to current state bankruptcy laws. If the consumer qualifies for chapter 13, they have the choice of either chapter. Consumers who want to learn more about bankruptcy laws visit http://tulsabankruptcylawyers.net/should-i-file-chapter-7-or-chapter-13-bankruptcy/ for more information right now.