Oklahoma Bankruptcy HelpWhat is Medical Bankruptcy in Oklahoma?

Two-thirds of Americans who file for bankruptcy cite medical problems as the reason for their financial misfortune, according to CNBC. Unfortunately, there is no way to file a simple medical bankruptcy in Oklahoma or any other state. All of your creditors, including your mortgage lender and your credit card companies, must be included in any bankruptcy filing.

The good news is all medical bills can be included in bankruptcy, so now you must decide whether to pursue Chapter 7 or Chapter 13. Let’s discuss the differences between these.

Chapter 7 Medical Bankruptcy in Oklahoma

Chapter 7 offers complete forgiveness of most debts, including medical bills. However, you must qualify to file this type of medical bankruptcy in Oklahoma.

A federally designed means test will determine whether you qualify. Generally, you must earn less than the annual median income level for your household size. Here are the figures as of November 2019:

• One-person household: $48,322
• A household of two people: $58,436
• Household of three people: $65,400
• Household of four people: $75,326

For example, if you are a single person and earn $49,000 a year, you do not qualify for Chapter 7 bankruptcy. You must choose Chapter 13 bankruptcy, which will be explained in the next section, or not file bankruptcy at all.

Chapter 13 in Tulsa

Chapter 13 is commonly referred to as a “wage earner’s plan.” It allows you to partially repay your creditors, including doctors and hospitals, under court supervision. The repayment plan takes three to five years to complete.

However, all of your financial affairs will be the business of a U.S. Bankruptcy Court trustee during the term of your repayment plan. That means any unexpected financial windfalls could be fully or partially diverted to your creditors, and you cannot get even a car loan without the court’s permission. This could be a disadvantage if you expect to inherit money or generally receive large tax refunds or work-related bonuses.

Basic Requirements

Whether you choose Chapter 7 or Chapter 13, you must complete the following steps.

• Receive credit counseling from a federally approved agency before filing your request for bankruptcy. If you chose Chapter 7, you must also complete a second session later in the process.
• File extensive paperwork with your local district of the U.S. Bankruptcy Court. The paperwork requires a full list of your creditors and assets, your last three tax returns, and employment and address history. Simple mistakes can literally cost you; this is why many people choose to hire an attorney or paralegal to assist them. You can get a low-cost bankruptcy analysis today by calling Freedom Financial Bankruptcy Lawyers of Tulsa at 918-786-9600.
• Pay the required fees: $310 for Chapter 13 and $335 for Chapter 7 (as of November 2019).
• Attend a 341 meeting of creditors. This allows your creditors the opportunity to object to your medical bankruptcy in Oklahoma. However, there is no need to be concerned unless you lied to get credit or have hidden assets. Most creditors do not show up, and these meetings are generally brief and uneventful. If you have concerns, speak to a qualified Tulsa bankruptcy attorney.
• Attend all court hearings; for Chapter 7, usually you need to attend a discharge hearing. In Chapter 13, you may need to attend more hearings especially if your financial circumstances change.

Initial Strategy Session: Tulsa Bankruptcy Attorney

Bankruptcy law and its forms are complicated, and mistakes will cost you. It is important to get the forms right the first time.

Your attorney can help you understand the process and what debts you will likely be required to pay, which debts are secured with collateral, and what property is exempt.

Because we have worked with so many clients, we know how to do the filings right and how to make the process efficient. Our goal is to make affordable debt relief in Tulsa available to anyone who needs to get out from under debt and back on top of their financial life.

Get out from under by calling for the help you need today. We are here to help.

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