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 attorney 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.