Frequently Asked Questions
- Bankruptcy -
What types of debt can bankruptcy eliminate?
Unsecured debts like credit cards, payday loans, personal loans, and medical bills can usually be eliminated without repayment under Chapter 7. Under Chapter 13, these debts may be repaid through an income-based repayment plan without interest.
Should I use a debt settlement company instead of filing bankruptcy?
We strongly advise against it. Debt settlement companies often require years of deposits while your debts and interest grow. Many clients end up sued by creditors before the process is finished, leaving them in worse shape than before.
Can bankruptcy stop repossession, foreclosure, garnishments, or collections?
Yes. Once your case is filed, the automatic stay immediately stops all collection activity. This includes repossessions, foreclosure proceedings, wage garnishments, and collection calls, giving you time to regroup.
What is Chapter 7 bankruptcy?
Chapter 7 can wipe out most unsecured debts such as credit cards and medical bills. Some debts (like student loans and child support) are not dischargeable. In some cases, non-essential assets may be sold to help repay creditors. To qualify, you must meet specific income requirements.
What is Chapter 13 bankruptcy?
Chapter 13 sets up a 3- to 5-year repayment plan based on your income. It’s useful if you:
Don’t qualify for Chapter 7
Need to catch up on mortgage payments
Want to repay tax debt
Prefer to pay creditors over time to protect assets
Can student loans be discharged in bankruptcy?
Student loans are not automatically discharged, but they can be eliminated through an Adversary Proceeding. We offer a free consultation to determine if you are a good candidate for this process.
Can taxes be discharged in bankruptcy?
Yes, in some cases. Income taxes may be dischargeable if you filed the tax return on time, and no lien or tax warrant exists for that year. We’ll review your tax situation to see if bankruptcy can help.
How will bankruptcy affect my credit?
While your credit score will initially take a hit, most clients are already struggling with credit before filing. Bankruptcy gives you a clean slate:
Your debt-to-income ratio improves immediately
Negative accounts stop reporting
Within two years, you may qualify for a home loan again
How long does bankruptcy take?
Chapter 7: About 2–6 months from filing to discharge
Chapter 13: 3–5 years, depending on your repayment plan
In both cases, you’ll feel immediate relief once your case is filed because of the automatic stay.
What is the bankruptcy process like?
Free consultation to review your situation
Gather financial records and complete required credit counseling
File your petition
Attend a short meeting of creditors (usually 30–45 days later; creditors rarely attend)
For Chapter 7: discharge in a few months
For Chapter 13: repayment plan confirmed and payments begin
Where do you handle cases?
While our office is located in Tulsa, Hanson & Hanson is licensed to handle bankruptcy cases throughout the entire state of Oklahoma. We can file cases in all three federal districts:
Northern District of Oklahoma (Tulsa)
Eastern District of Oklahoma
Western District of Oklahoma (Oklahoma City)
That means whether you live in Tulsa, Broken Arrow, Owasso, Bixby, Jenks, Sand Springs, Sapulpa, Claremore, Glenpool, Coweta, Skiatook, Oklahoma City, or any community in between, we can represent you and guide you through the bankruptcy process. No matter where you’re located, you’ll receive the same level of friendly, compassionate, and effective legal support.
Do you handle business bankruptcy?
Yes.
Chapter 7: Business Liquidation – Close the business, liquidate assets, and resolve debts. (Note: businesses don’t receive a discharge, but this creates a clear ending.)
Chapter 11: Business Reorganization – Restructure debt, keep operating, and work toward repayment while protecting essential assets.
Will I have to go to court?
Most clients never step inside a courtroom. Instead, you’ll attend a short meeting of creditors (called a 341 meeting). It usually lasts less than 10 minutes, and creditors rarely attend. We’ll be right there with you.
Will bankruptcy wipe out all of my debts?
Not all debts are dischargeable. Obligations like child support, alimony, most student loans, and certain recent tax debts generally cannot be wiped out. We’ll review your case and explain exactly what bankruptcy can and cannot do for you.
Will I lose my home or car?
In most cases, no. Oklahoma exemptions allow you to keep essentials like your home, vehicle, retirement accounts, and personal property. Chapter 13 also lets you catch up on missed mortgage or car payments to avoid foreclosure or repossession.
How soon after bankruptcy can I get credit again?
Many clients start receiving credit card offers within months of filing. You can rebuild responsibly by using secured credit cards or small loans. Within two years, bankruptcy will no longer prevent you from qualifying for a home loan.
Can bankruptcy help with medical debt?
Yes. Medical bills are one of the most common reasons people file for bankruptcy. Both Chapter 7 and Chapter 13 can eliminate or restructure medical debt so you can focus on your health instead of collection calls.