Oklahoma Bankruptcy HelpOklahoma Chapter 7 Can Save Your Home Sometimes

Sometimes, filing Chapter 7 can save your home from foreclosure. However, you must be careful to file your Oklahoma bankruptcy paperwork properly.

Any time you are dealing with real property and secured debt in a bankruptcy, it is best to get the advice of an experienced Tulsa bankruptcy attorney.

How Chapter 7 Can Save Your Home

Filing Chapter 7 will halt a foreclosure in Tulsa or prevent a mortgage company from demanding a foreclosure — at least for the two to six months it takes for a bankruptcy judge to accept or deny a debtor’s request for debt liquidation.

Beyond that, there are limited tools to save your home.

If your home is paid for and you do not want it to be liquidated, you may use an Oklahoma homestead exemption to keep the property.

The homestead exemption allows you to exempt real property or a manufactured home of unlimited value. However, the property cannot exceed 160 acres if not in a city or town or 1 acre in a city or town.

If the property is exempt, you may keep it during and after bankruptcy.

If the property is not exempt, a bankruptcy court trustee is entitled to sell it to pay your unsecured creditors.

There are some limitations to the use of a homestead exemption, so you should check with an attorney.

Additional Situations

If you have a mortgage on the property and have very little equity in the property, it is unlikely that the trustee will force the sale of the property in a Chapter 7 bankruptcy.

If you have a great deal of equity in the house, the trustee may force the sale in order to pay creditors.

If you own a home with a mortgage and have some equity, Chapter 13 is a better bet if you want to keep your house. You are much more likely to be able to reaffirm the debt and keep the house.

Reaffirming the debt means that you take the debt back on after the bankruptcy is completed. In order to do so, you need to be able to make the mortgage payments.

The decisions you make now will impact your financial life for years to come. Make sure that you have all the help you need to make the right decisions.

Low-cost Bankruptcy Planning: Tulsa Bankruptcy Lawyer

To get the best possible outcome in your bankruptcy case, you will need to set expectations for yourself and also understand your attorney’s expectations of you.

To receive a low-cost initial consult, call Financial Freedom Bankruptcy Lawyers of Tulsa today at 918-786-9600.