Bankruptcy is a process that helps debtors resolve debts or pay off creditors in a way that allows them to live financially manageable but productive lives. Bankruptcy can help you get back on your feet and resume the daily hustle. There’s no need to continue sinking deeper into debt.
Hopefully, you will never find yourself declared bankrupt. It can be an overwhelming and scary process to go through. Most of us think of bankruptcy as a last resort when we have nowhere else left to turn. There are occasions where bankruptcy is the best option if the debt has spiraled out of control and there appears to be no other way out. It’s worthwhile to understand your options and how filing bankruptcy, in this situation, could benefit you and your family. Hopefully, you’ll never need it.
If you have a number of debts that are beyond your scope of repayment, or lenders/creditors coming after you and threatening to put a lien on your property, belongings, bank account, or wages, bankruptcy may be a good option for you. Bankruptcy proceedings represent one of the most effective ways for consumers in financial distress to begin recovering from their debts.
An Introduction To Bankruptcy
The most important thing to understand about bankruptcy is that it is not a crime. Filing for bankruptcy protection is a legal right available to everyone.
Most people do not realize that they have the right to file for bankruptcy protection. Even people who are aware of this right often worry that they will lose all of their property, will no longer be able to buy anything on credit, or will be viewed as irresponsible or unethical if they file for bankruptcy protection. None of these concerns are true.
Bankruptcy exists to provide you with a fresh start when debt has become too overwhelming and there are insufficient resources to pay all debts as they come due. It is a legal mechanism available under federal law that can stop creditor collection efforts, prevent repossession and foreclosure, wipe out certain kinds of debts, and get you on the road to financial recovery.
In determining whether you should file for bankruptcy protection, it is important to understand what the process involves and what its effects will be in your particular case.
How Do Bankruptcies Work in Oklahoma?
Most people who file for bankruptcy are not rich. They are ordinary working people who have lost their jobs or been hit by large medical bills. Bankruptcies have been increasing in Oklahoma, as they have in the rest of the country.
The purpose of bankruptcy is to give people a fresh start, free from crushing debt. For example, it may allow you to keep your home and your car if you can afford to pay for them. You may also be able to get rid of some other debts completely. The main type of bankruptcy used by individuals is Chapter 7. But there are other types, like Chapter 13 and Chapter 11, which might be available to you depending upon your circumstances.
How Do I File For Bankruptcy In Oklahoma?
If you are considering filing for bankruptcy in Oklahoma, you will be happy to know that the state has one of the simpler processes in all of America. The requirements are straightforward and uncomplicated, and most people who want to file for bankruptcy in Oklahoma can do so without hiring an attorney.
If you decide to file for bankruptcy on your own, you will need to complete the forms that you download from the U.S. Bankruptcy Court website, or from the clerk’s office at your local courthouse. You’ll need to include information about your income, your debts, and the property you own, as well as other personal information. The process is not difficult, but it does take time, and it is important for you to get all of these details right.
When filling out your forms, make sure that you never lie or conceal anything from the court. If you are found to have misrepresented anything in your filing paperwork, including your finances or property ownership status, then the court may refuse to grant bankruptcy protection or dismiss your case entirely.
The benefits of filing for bankruptcy
Filing for bankruptcy can be beneficial to consumers in a number of ways. Here are just four examples:
1. Filing for bankruptcy can help you get out of debt in a way that protects your home and other assets. When most people think about filing for bankruptcy, they think about losing their home and their car and having to start over with no assets or money in the bank. The truth is that most people who file for bankruptcy do not lose any property at all. This is because state laws provide exemptions that allow you to keep certain types of property. Additionally, through the process of reaffirmation, which we will explain more fully below, many people are able to keep property such as their cars and homes even if they have loans on those items.
2. Bankruptcy can help you keep your car and your house by providing protection from repossession and foreclosure. There are two main types of consumer bankruptcy cases: Chapter 7 “straight” bankruptcy cases and Chapter 13 “adjustment” cases. One thing that Chapter 13 does differently than Chapter 7 is that it allows you to spread out the payments you owe on secured items (like your car or your house) over a period of up to five years.