Filing for bankruptcy can be a complex and intimidating process, but it can also provide a fresh financial start for individuals overwhelmed by debt. If you’re considering bankruptcy in Oklahoma, understanding the process, requirements, and implications is crucial. Our friends from Marty Martin Bankruptcy Law offer a brief overview of how to file bankruptcy in Oklahoma, although you may wish to consult with your own bankruptcy attorney to get personalized advice for your situation.
Types Of Bankruptcy
In Oklahoma, individuals typically file for bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code:
- Chapter 7 Bankruptcy: Also known as “liquidation” bankruptcy, Chapter 7 allows individuals to discharge most unsecured debts, such as credit card debt and medical bills. However, some assets may be sold to repay creditors.
- Chapter 13 Bankruptcy: Often referred to as “reorganization” bankruptcy, Chapter 13 involves creating a repayment plan to gradually pay off creditors over three to five years. This option allows individuals to keep their assets while catching up on missed payments, such as mortgages or car loans.
Preparing To File Bankruptcy
Before filing for bankruptcy in Oklahoma, several steps are typically recommended:
- Credit Counseling: Under federal law, individuals must complete a credit counseling course from an approved provider within six months before filing for bankruptcy.
- Gather Financial Documents: Collect documentation of your financial situation, including income, assets, debts, and expenses. This includes pay stubs, tax returns, bank statements, and loan documents.
- Evaluate Eligibility: Assess whether you qualify for Chapter 7 or Chapter 13 bankruptcy based on your income, expenses, and financial circumstances. Eligibility requirements can vary, so consulting with a bankruptcy attorney is advisable.
Filing The Bankruptcy Petition
Once you’re prepared to proceed with bankruptcy filing in Oklahoma, follow these key steps:
Fill out official bankruptcy forms, including the petition, schedules detailing assets and liabilities, income and expenses, and a statement of financial affairs. These forms provide a comprehensive overview of your financial situation to the bankruptcy court.
Submit your completed bankruptcy forms to the U.S. Bankruptcy Court for the Eastern or Western District of Oklahoma, depending on your residence. There are filing fees associated with bankruptcy petitions, although fee waivers may be available for those unable to pay.
Upon filing for bankruptcy, an automatic stay goes into effect, halting most creditor actions, including collection calls, lawsuits, wage garnishments, and foreclosure proceedings.
After filing, you’ll attend a Meeting of Creditors (341 Meeting), where a trustee appointed by the court will review your case and creditors may ask questions about your financial affairs. You may need to complete a financial management course from an approved provider before receiving a discharge of debts.
Filing for bankruptcy in Oklahoma offers individuals overwhelmed by debt a legal pathway to financial relief and a fresh start. An experienced bankruptcy lawyer can walk you through how to file bankruptcy in Oklahoma, including gathering the necessary documentation and filing your petition.