Oklahoma Bankruptcy HelpWhat is a Tulsa, Oklahoma Bankruptcy Discharge?
To most people, the term Tulsa, Oklahoma bankruptcy discharge may sound confusing. However, this is the legal term for forgiveness of debt. Unfortunately, not every type of bankruptcy is equal; also, not every debt can be reduced fully or in part through bankruptcy. Let’s discuss the two main types of Oklahoma bankruptcy discharge.
Chapter 7 Oklahoma Bankruptcy Discharge
Most people think about Chapter 7 when they hear about personal bankruptcy. It is true that Chapter 7 offers the most complete discharge of consumer debts. However, you must financially qualify to pursue Chapter 7 bankruptcy in Tulsa. People who earn more than Oklahoma’s annual median income level usually do not qualify. As of November 2019, the ranges were as follows:
- One-person household: $48,322
- A household of two people: $58,436
- Household of three people: $65,400
- Household of four people: $75,326
So, a married couple with a child who earn a total of $67,000 a year do not qualify for a Chapter 7 Oklahoma bankruptcy discharge — unless they can prove to a U.S. Bankruptcy Court judge that their necessary living expenses make it too difficult for them to even partially repay their creditors.
People who earn a decent living, in accordance with U.S. bankruptcy laws, must either partially repay their creditors under Chapter 13 or not file bankruptcy at all.
Chapter 13 Basics
Chapter 13 allows struggling Oklahomans to partially repay their creditors over three to five years. However, the debtor must have a steady income in order to commit to this type of bankruptcy. In addition, the debtor cannot get any new credit accounts without special permission while in a Chapter 13 plan.
Ineligible Debts
Some debts cannot be included in any type of Oklahoma bankruptcy discharge, including:
- Federal government student loans, with few exceptions.
- Child support and alimony.
- Court costs, fines for a crime, or court-ordered restitution.
- Tax bills incurred less than three years before filing for bankruptcy.
Any debt that is payable due to an act of fraud such as lying on an application or knowingly charging up credit cards before filing bankruptcy. A Tulsa bankruptcy attorney is in the best position to give you advice if you find yourself in such a situation.
Credit Reporting
The fact that you filed for a Chapter 7 bankruptcy discharge will be reflected on your credit report for 10 years from the date of filing; Chapter 13 bankruptcy reports for seven years from the date of filing.
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.
