Filing Bankruptcy in Tulsa Oklahoma doesn’t have to be so difficult. The fear about bankruptcy is stoked by the years of myths that surround the process. Over the many years that I’ve filed cases in Oklahoma I’ve heard countless bits of fake news regarding what bankruptcy does for and doesn’t do. The truth is that until you get information from a bankruptcy attorney the myths about filing will continue.

Common Myths About Bankruptcy

One of the biggest myths about filing bankruptcy in Tulsa Oklahoma pertains to loosing your assets. Once my bankruptcy action gets filed, I will lose everything I own, is what people think.  This is definitely not true. There are ways  which a person who files  bankruptcy can keep all of their property during and after their case.  Specifically, the bankruptcy code is generous  with exemptions that allow most people to keep most if not all of their belongings.

Your Credit Score After Bankruptcy

Another bankruptcy myth is that once you file your credit is ruined. The first thing to consider is what is your credit score today. Is it as low as it gets because you’re not paying your bills? If so then bankruptcy wont hurt it anymore then it is today. In the event that your credit score is high, when you file it will suffer a decline, but this can be fixed.

Once you file, most of the debt is wiped out. This removes “delinquent” accounts from your credit report.  Filing can make you more attractive to some creditors because it decreases your debt to income ratio. Additionally, you can only file bankruptcy every 8 years. This means that after you file many creditors will attempt to give you credit because you cant file for another 8 years. If you’re careful and manage your credit you might find that within a year or two your credit score is better then it was before you filed.

The New Bankruptcy Law and You

Many people incorrectly think that since the new laws were enacted filing bankruptcy in Tulsa Oklahoma is no longer possible. This is certainly not the case.  Bankruptcy in Oklahoma still remains a great option for individuals facing serious financial hardships.  Despite the fact that it can be more challenging for some people, the majority of people still qualify.  For those who dont qualify for chapter 7 they can still file chapter 13,

Taxes in Bankruptcy

Certain taxes can be forgiven or reduced by filing bankruptcy. The general rule is that the taxes must be over three years old and must be reduced to a judgement. Additionally you must have filed all of taxes on time since the late tax judgement was entered.

In a chapter 13 some of the debt you owe gets paid back. In many circumstances taxes work great in a chapter 13 bankruptcy. The reason is that a tax debt is a priority debt. Priority debts are paid before non priority debts. Because chapter 13 payments are limited in their amount, what you owe may largely go toward taxes.