Chapter 7 bankruptcy is the most common of all the bankruptcy chapters. As a Tulsa Bankruptcy Attorney, we want you to realize that Chapter 7 bankruptcy is designed to give people a fresh start, to give individual consumers and families a chance for a new beginning financially. Chapter 7 wipes out your “unsecured” debts, i.e., it wipes out your obligation to pay some debts, like credit cards and medical bills. Filing a Chapter 7 immediately stops all harassing collection activities against you. It stops all creditors from suing you.
As a Tulsa Bankruptcy Attorney, we want you to understand that certain types of debts can not be wiped out by bankruptcy. Student loans, certain taxes, and parking tickets will survive a Chapter 7 Bankruptcy.
Chapter 7 is also known as liquidation. That is because when you file Chapter 7, the Court-appointed Trustee temporarily owns all of your property. For example, suppose you own luxury items or assets unnecessary for the health and welfare of your immediate family members. In that case, the Trustee can liquidate or sell the property to raise money for your creditors. However, if an experienced Tulsa Bankruptcy attorney adequately represents you, you can keep most or all of your property in the majority of cases. Of course, this does vary with the facts of each case, but an experienced bankruptcy attorney can protect your property using the bankruptcy code and state exemption laws.
Chapter 7 bankruptcy is used when a person has many unsecured debts, like credit card debt and medical bills, and when they don’t earn over a certain amount or own too much property. However, suppose an individual earns more than a certain amount, as set out in the census bureau statistics. In that case, the Court may require that they file a Chapter 13 type bankruptcy (a repayment plan) rather than a Chapter 7 because the Court and Congress feel that they can afford to pay back their creditors at least a percentage of what they owe. To be eligible to file a Chapter 7 bankruptcy, you must have an income below the median for your family size in Oklahoma. That percentage will depend upon what you earn, the size of your family, and the amount of non-exempt property that you own, among other factors.
The Tulsa bankruptcy attorneys at Hanson & Hanson regularly practice in the U.S. Bankruptcy Courts for all three Federal Districts in the state of Oklahoma. We recommend that you seek counsel from an attorney about your current financial situation before filing for bankruptcy.
To determine which type of bankruptcy is most appropriate for you requires a thorough investigation into your finances, including your income (today and over the past six months), the number of members of your household, and the property you own today and have owned over the past ten years. The bankruptcy laws are complicated, and it is best to seek counsel from Tulsa bankruptcy attorneys concentrating on bankruptcy law practice. A Tulsa Bankruptcy Attorney Can Stop Collection Activities
Any bankruptcy filing will stop the creditor’s harassment and stop all collection activities. Still, it would help if you were sure that you are filing under the correct bankruptcy chapter and that all your options have been explained to you by a competent Tulsa bankruptcy attorney.