Chapter 13 Bankruptcy law helps you with out of control debt. Its a great tool to liquidate or reorganize your debts. Many people in Oklahoma file bankruptcy every year. They do this as a way of forgiving or consolidating their debt.Bankruptcy is a wonderful way to stop foreclosures and to eliminate garnishments.
Once a person decides to file they have to decide if they’ll file a chapter 13 or chapter 7. The one you file has a huge impact of the process. It also determines if the debt is totally forgiven or if you have to pay a portion of it back. Most people prefer to file a chapter 7 so they can forgive the debt. The problem is that they have to qualify. They might not qualify because they make to much money. They also might want to keep a home they’re behind on. Regardless of the reason chapter 13 bankruptcy law is still a wonderful solution.
Filing Chapter 13 Bankruptcy
To begin you and your attorney will gather the required information. You must identify all your assets and all your debts. You will have to provide documents such as 4 years of tax returns, vehicle titles, bank statements, pay stubs, and a deed to your house. Once the information and documents have been accumulated, your attorney will file the petition, schedules and statement of financial affairs with the bankruptcy court. Unlike in a Chapter 7, in a Chapter 13 you must also file a proposed repayment plan.
Repayment Plan in Bankruptcy
If your income is to high for a chapter 7 you can file a chapter 13. Our Oklahoma bankruptcy attorneys help people who owe money make a repayment plan through bankruptcy. In a chapter 13 a re-payment plan last for 5 years. If you’re facing foreclosure you can pay the late potion of your mortgage over the five year repayment plan. The plan focuses on paying your secured and priority claims first. The plan also provides for payment of unsecured debts, but may only pay a percentage of unsecured debts. The court must approve your repayment plan and your budget. When you file your Chapter 13 bankruptcy the court appoints a trustee. The trustee will work with your attorney to develop a proper plan. You will make your plan payments to the trustee. Your first payment is due 30 days after you file your bankruptcy. If you fail to make your payments the trustee will file a motion to dismiss your case.
The Impact of Filing Chapter 13 Bankruptcy
Chapter 13 bankruptcy law requires that the case is filed in federal bankruptcy court. Immediately upon filing you get the benefit of the protections that come with filing bankruptcy. The automatic stay is triggered and any and all collection efforts against you must stop. This includes law suits, garnishments, foreclosures and other collection efforts. In a Chapter 13 bankruptcy the creditors are required to accept a repayment plan of your original debt and any amounts past due. This is how a chapter 13 bankruptcy can protect you from a foreclosure.
Bankruptcy Attorney in Okla.
Bankruptcies are wonderful tools that you can use. A chapter 13 bankruptcy is the best way to stop a foreclosure or to get protection from creditors stalking and threatening you. It doesn’t matter if you make to much money and don’t qualify for chapter 7. Chapter 13 will help to reduce the debt, save your property form foreclosure and get you back on track. Get a free consultation with a bankruptcy lawyer near you. 918.637-1546