We have served over 1,200 Bankruptcy clients

Is Bankruptcy The Right Decision For You?

Tulsa Bankruptcy Attorney | Is Bankruptcy The Right Decision For You?

Bankruptcy is not the most pleasant thing to discuss. Many view it as a final and last resort to debt. To sum up what bankruptcy is you are simply telling your creditors that you do not have enough money to pay them back. Filing for bankruptcy does not mean that you do not have a job or a productive citizen. It means that you have gotten into debt that you are unable to pay off. This often involves facing large medical bills that you never anticipated seeing in the future.

From this point on we will start dealing with subjects such as is bankruptcy the right decision for you? Should you seek out a Tulsa bankruptcy attorney? What is the process of a bankruptcy filing and what you should be expect after you file for bankruptcy?

Why Would You Need To File For Bankruptcy?

Bankruptcy is not being able to pay off your debt. When you file for bankruptcy you are getting legal recognition or status that you are not able to pay off your debts. That stated you cannot file for bankruptcy on your own. You will need a Tulsa attorney who will help you declare yourself bankrupt.

When you are declared bankrupt your debts do not just vanish in a majority of cases. You will begin the process of working with your attorneys and creditors on a way to pay back your debts or as much as you possibly can. Your debt is going to be restructured in a way that you are going to be able to pay off your debt or as much as you possibly can. This is going to take a huge weight off your chest. The creditors will no longer be able to bother you about your current debt. In some cases, the debt will be completely wiped out and in other cases, it will not be.

In Oklahoma when you are facing bankruptcy you will need to get credit counseling before you are able to complete the bankruptcy process or begin the process of negotiating your debt. Credit counseling will help you restructure your finances and help you begin the process of getting back on your feet.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is when you go through asset liquidation. A better way to describe it is you are giving up your assets in exchange for filing bankruptcy. Then after your assets are gone you are required to raise the rest of the money to pay off your debts.

When you are filing for Chapter 7 bankruptcy you are not required to liquidate important assets such as your car. The court wants you to be able to make a living in order to be able to pay off your debts. They understand that you need assets such as a car in order to get to and from work.

When your assets are liquidated, you will then begin the process of setting up a payment plan with your attorneys and your creditors. Filing for Chapter 7 bankruptcy is better for people who have more assets than they have cash and who wish to be able to give up their assets in exchange for working out a better debt deal with their creditors.

What Is Chapter 13 Bankruptcy?

The goal of chapter 13 bankruptcy is going to be to pay off your debts as soon as you possibly can. The main goal and purpose of Chapter 13 bankruptcy are to reorganize your debts so that you can pay off less debt inside of a faster time period. The end goal with this type of bankruptcy is to get to a good financial place for both you and your creditors in an as little amount of time possible.

When you file for Chapter 13 bankruptcy your creditors will no longer be able to harass you and the Court will issue a “stay” against them while the process starts of reorganization of your debts. In this time both you and your attorneys will work together with your creditors to work out a payment plan that you can afford.

Once this new payment plan is worked out it is going to be vital that you stick with it and do not miss a payment. The goal of Chapter 13 is to get you back on a solid financial footing so that you can begin to enjoy your life again.

Bankruptcy Does Not Cover Everything

Bankruptcy does not cover all debts. It will not cover student loans and it does not cover liens. It will not cover such things as child support or alimony. It also does not cover tax debts, such as not paying your federal income tax.

While bankruptcy covers many things it does not cover all things. You should have a basic understanding of what it covers and what it does not cover before filing.

Is Bankruptcy The Best Decision For You?

When you are considering filing for bankruptcy you have to consider many things. You first of all have to consider how much you owe. Then you then have to determine if these debts are unsecured debts such as credit card debts or if they are secured debts such as child support.

You then need to look at what type of bankruptcy is going to be best for you. Is Chapter 7 or is Chapter 13 going to work best in your favor? You need to understand that once you file for bankruptcy you will have to open up and show the Court all of your finances.

If you decide to file for chapter 7 bankruptcy you need to understand that you could be subject to losing your home.

When you talk to a Tulsa Bankruptcy attorney they will be able to work out the details with you about what you stand to lose if you decide to file for bankruptcy.

How To Avoid Filing For Bankruptcy?

The main alternative to filing for bankruptcy is debt consolidation. What this does is condenses all of your debt into one payment. In most cases when you condense your debt into one payment it is affordable. In many cases, the interest rate you are paying will also be lower.

There are several ways how this can happen. The most common one is to go to your bank and get a loan that covers all of your debt. Then once approved, you will just be making a single payment to your bank.

You can also consider credit counseling. If you have a job and are bringing in a good income, but not enough to pay off your debts many times a credit counselor will be able to work with you and show you how it is possible for you to pay off your debts with your current income.

These are the main ways to avoid filing for bankruptcy. It’s possible that a Tulsa Bankruptcy attorney might be able to provide you with other suggestions.

Contact Us