Oklahoma Chapter 13 Bankruptcy allows individuals who have steady incomes to pay all or a portion of their debts under the protection and supervision of the court. Generally, people who file a chapter 13 do so because their income is to high to qualify for a chapter 7. Another reason may be that they are behind on their mortgage and facing a foreclosure.
Oklahoma Chapter 13 Basics:
Under Chapter 13, you file a bankruptcy petition and a proposed payment plan with the U.S. Bankruptcy Court. Payment plans provide for re-payment of debts to certain creditors over 3 to 5 years. The amount of the payment is determined after your Oklahoma chapter 13 bankruptcy lawyer evaluates your monthly disposable income. The disposable income is the amount of money remaining after you pay all of your monthly expenses. Those expenses include your current rent or mortgage, car payments fuel and all other normal living expenses.
An important feature of Chapter 13 is that if you’re facing a foreclosure, or the repossession of other secured assets, filing the case will stop the foreclosure. The court will require you to make your normal payment and catch up the late payments over the course of the chapter 13. The late payments are required to be paid in full but the re-payments is done over a 5 year period. Your Oklahoma chapter 13 bankruptcy lawyer will work with your mortgage holder to determine the amount of your past due payments.
What if My Income Changes:
If while you’re in the chapter 13 payment plan your income is reduced you can modify the plan payment. This requires that you submit all of your new income amount and get the approval of the bankruptcy trustee in your case. In the event your income falls below whats required to qualify for a chapter 7 you may be able to convert the case to a chapter 7.
Free Chapter 13 Bankruptcy Consultation:
If you’re facing financial difficulty our Oklahoma chapter 13 bankruptcy lawyer may be able to help you. People face financial difficulty for a wide range of reasons. Most times the reason they face the problems has very little to do with them. A chapter 13 bankruptcy is a law designed to protect consumers and get them back on their financial feet.