Oklahoma City Bankruptcy Attorneys

Regain Your Financial Footing and Avoid Losing Your Home

If you are unable to pay the monthly minimum on your credit card debt and you have fallen behind on your mortgage, car payment or other loans, filing for bankruptcy may be the most effective option available for avoiding foreclosure on your home, your business, or your farm. Additionally, contrary to what you may have been told, declaring bankruptcy doesn’t mean you won’t ever qualify for a credit card or loan. In fact, most people who file for bankruptcy are able to begin rebuilding their credit months after filing. Once you file for bankruptcy, creditors and collection agencies are required by to law to contact your attorney and stop calling you at home or work.

At The Self & Spurgeon Legal Group, PLLC, our lawyers meet with you and evaluate your current financial situation to determine if bankruptcy makes sense for you or if another debt relief option would be a better fit. For more information regarding bankruptcy and how we can help you seek relief from your debt, contact bankruptcy attorneys at The Self & Spurgeon Legal Group, PLLC today to schedule an appointment.

Chapter 7 Bankruptcy

In order to file for Chapter 7 bankruptcy, your household income cannot exceed Oklahoma’s median income for households of a similar size (a bankruptcy lawyer can give you more information about filing guidelines). If you qualify, you can discharge debt on credit cards, medical bills, certain types of loans, and other forms of unsecured debt. However, the court may sell some of your property in order to pay your creditors a portion or all of what you owe them. While there is a household exemption, a $10,000 “tools of the trade exemption”, a $2,000 gun exemption and a $7,500 motor vehicle exemption, unless you can continue paying your monthly mortgage, you could still lose your home, even after filing. However, filing for Chapter 7 will force your bank to temporarily suspend foreclosure actions against you. Under Chapter 7, child support and student loans are not dischargeable but some types of tax debt are.

Chapter 13 Bankruptcy

If you do not meet the means test for Chapter 7, you may be able to file for Chapter 13 bankruptcy. In a Chapter 13 proceeding, your debt will be restructured according to a plan you submit to the court for approval. Typically, under Chapter 13 you will be required to repay 80% to 100% of what you owe over a 3-to-5 year period. Since your debt is not automatically discharged but paid back, you should be able to keep your home and cars. Past-due mortgage payments can be included in your repayment plan, making it easier for you to keep your home. The same exemptions that apply in Chapter 7 bankruptcy also apply under the terms of Chapter 13.

Chapter 11 Bankruptcy

Struggling businesses can restructure their debt under the terms of Chapter 11. A business owner is required to propose a plan that brings past-due accounts receivable current, pays down loans, and reorganizes other debt. Under Chapter 11, a business can typically avoid receivership and continue daily business operations. However, staying in business is contingent upon creditors agreeing to a proposed plan. If you fail to comply with the terms of your debt reorganization, your creditors can force you into receivership.

Chapter 12 Bankruptcy

Under Chapter 12 bankruptcy, farmers can restructure their debt in order to avoid losing their land and homes. For family farms, the debt in question cannot exceed $1.5 million, at least 80% of the debt involved must be related to farming, and at least 50% of the family’s income must come from farming. There are a number of other considerations that must be taken into account as well, such as the value of your home and whether or not it can be considered as part of your farming operations.

Questions? Contact the Self & Spurgeon Legal Group, PLLC Today

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