Oklahoma Bankruptcy HelpHere’s What You’ll Learn in Tulsa Credit Counseling

The Tulsa, Oklahoma bankruptcy court now enforces a pre-bankruptcy credit counseling and education requirement as part of the bankruptcy proceeding.

In almost all cases, a debtor is required to get credit counseling within 180 days before filing for bankruptcy. A debtor must complete a financial education requirement as well, but that may be done after the initial bankruptcy filing and before the discharge of debts is ordered.

The counseling provided must be approved by the federal government in order to qualify as credit counseling for purposes of bankruptcy court. These companies are more likely to be reputable.

Credit Counseling

Many of these companies are able to put together a debt management plan as an alternative to bankruptcy. But be sure and research the company before you enter into any agreements or give them money. It is important to understand exactly what you are getting into, especially before you sign any contracts or hand over any of your hard-earned cash.

Debt management plans look something like a Chapter 13 reorganization of debt. A credit counseling agency will negotiate with your creditors to make the debt management plan. You then pay a monthly amount to the company and they pay all of your creditors. This type of plan normally takes three to five years to complete.

The credit counseling plan should include a thorough review and analysis of your finances, a discussion of alternatives to bankruptcy, and a detailed budget. This may take place in person, over the phone, or online.

The cost varies, so check with a number of non-profit companies to see what they charge. At the end of the credit counseling session, you will receive a certificate that can be used to show your compliance with this requirement should you choose to file for bankruptcy.

Additional Considerations

Tulsa credit counseling and debt management plans are more useful in cases where the majority of your debt is unsecured. It is less useful for debts secured by collateral such as a motor vehicle or a home. Under these plans, sometimes you can defer one or two payments, but the lender is able to repossess your collateral if you fail to pay.

So if you have secured debt, bankruptcy may be a better bet. In bankruptcy, you can reaffirm the debt and continue to make those payments while either discharging or reorganizing your other debts.

These financial decisions matter. Make sure that you get a complete picture of the ramifications of your decisions by consulting with an experienced Tulsa bankruptcy attorney.

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. Learn what the process entails.

To receive your low-cost initial bankruptcy analysis, call the Financial Freedom Bankruptcy Lawyers of Tulsa today at 918-786-9600.

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