Oklahoma Bankruptcy HelpWhat Debts are Ineligible for Tulsa Bankruptcies?

In an ideal world, bankruptcy would protect from financial ruin people who unexpectedly suffered financial losses. Unexpected medical costs, natural disasters, job loss, economic downturns or other such unpredictable circumstances are the reason lawmakers have long considered bankruptcy to be a necessary element of maintaining a productive economy.

Unfortunately, some people chose to abuse the Tulsa, Oklahoma personal bankruptcy system. Stories of people earning six-figure incomes declaring Tulsa bankruptcies on luxury vacations and items became all too common.

Thus, federal bankruptcy laws changed dramatically in 2005 under then-President George W. Bush’s administration. The changes were pitched as a solution for exploitative bankruptcy filings, but their scope was less than surgical.

As a result, now even honest people might not be eligible for full bankruptcy under Chapter 7. Most people contemplating bankruptcy in Tulsa file for close-to-full relief under Chapter 7 or partial assistance under Chapter 13.

Even if someone is destitute and living on the streets, there are some debts that can never be reduced or eradicated in Tulsa bankruptcies.

Taxes and Tulsa Bankruptcies

Recent local, state, or federal tax bills are ineligible for reduction or elimination under Oklahoma bankruptcy laws.

Basically, a tax bill must be at least three years old before a bankruptcy judge will render any rulings regarding it. The three-year period begins with the date the tax return was filed, not the tax year.

Child Support and Tulsa Bankruptcies

Child support and alimony are also no longer matters for Oklahoma bankruptcy judges, but Tulsa family court judges.

Failure to pay child support can lead to a variety of legal problems including driver’s license suspension and even incarceration.

Student Loans and Tulsa Bankruptcies

When the federal government issues student loans, the debtor should pretty much consider that a permanent financial obligation.

An Oklahoma bankruptcy judge will only forgive government student loans in cases of severe disability or other extenuating circumstances such as a college’s closure or act of fraud.

Additional Facts

Any debt incurred through a dishonest means is ineligible for relief in Tulsa bankruptcies; in some cases, the debtor may be prosecuted under federal bankruptcy fraud laws. Dishonest means could include lying on a credit application or charging debts knowing the bills cannot be paid.

Taking out cash advances from a credit card or charging a vacation in the weeks or even months prior to filing an Oklahoma bankruptcy could also be viewed as fraudulent.

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.

If you’re ready to file, contact a Tulsa bankruptcy attorney at the Freedom Financial Bankruptcy Lawyers of Tulsa as soon as possible.

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