Oklahoma City Chapter 13 Bankruptcy
Many people in Oklahoma who are considering bankruptcy have questions about the specifics of the bankruptcy process and its potential effects on their financial problems before ever filing a bankruptcy petition. These are the issues individuals face immediately and often discuss with their bankruptcy attorney when meeting for the first few times.
Further down the road, petitioners generally have more questions as to what to expect after the process is completed and their debt is discharged. Their focus has shifted to life after bankruptcy, and many are surprised at how promising that life will seem. A Chapter 13 bankruptcy lawyer Oklahoma City, OK clients trust from the Law Offices of Marty D. Martin can answer all your questions.
Bankruptcy is a serious process and must be contemplated and discussed before entering into it. However, it is not something to be dreaded or viewed negatively. After filing a bankruptcy petition, many may be surprised at when they will be able to start a new, promising financial future. Here is some of what you can expect:
- You may be approved for certain types of credit immediately. Creditors will likely see that you have just ended a bankruptcy proceeding and know you will not be able to file for bankruptcy again for several years.
- After approximately two to three years, you should be able to take advantage of good offers for car loans, and you should start receiving competitive rates on mortgages and home loans.
- Bankruptcy clears your debt, but not your credit history, so negative items will still appear even after your bankruptcy case has ended. However, these negative items will have less of an impact on your credit as time passes and also as you add more recent, positive items to your report. This will improve a petitioner’s credit rating perhaps more quickly than they thought.
- Despite the fact that bankruptcy can stay on your credit report for a period of ten years, it does not necessarily preclude you from being eligible for credit. In fact, it can help you establish a new, improved credit standing in a relatively short period of time.
An Oklahoma City Chapter 13 bankruptcy lawyer can explain all of this information in more detail during your consultation.
Just because those who recently closed their bankruptcy case may be eligible for credit sooner than they thought, it does not necessarily mean it is advisable to take advantage of such offers. Many credit card offers may carry high fees that apply before the card is ever used, as well as other charges that can lead to a financial situation similar to what led to bankruptcy in the first place. Use good judgment in choosing which credit accounts to open and work to re-establish your credit responsibly.
The Benefit of an Experienced Bankruptcy Attorney
It is important to note that many, if not all of these predictions depend on the specific circumstances of your particular case. An experienced bankruptcy attorney can better counsel you on what you can expect in your situation and advise you on how to avoid encountering problems in the future when your bankruptcy is behind you. Contact Marty Martin Bankruptcy Law to schedule a consultation with an Oklahoma City Chapter 13 bankruptcy lawyer. We are prepared to handle your case successfully.
Mistakes to Avoid When Filing Chapter 13 Bankruptcy Infographic
Chapter 13 Bankruptcy Attorney Oklahoma City, OK
Chapter 13 Bankruptcy is also known as Personal Reorganization Bankruptcy. It is the type of Bankruptcy where you pay back your creditors the amount that your budget will allow, usually interest-free.
Basically, the process starts with you providing me with certain records such as
- The past 2 years of filed federal and state tax returns;
- All of the paycheck records that you received during the most recent 6 calendar months from the month of filing. These records must contain the gross amount of your checks and the itemized deductions for health insurance, taxes, etc. (for example, if you are filing in July, I would need all records from January through June);
- All bank statements of any accounts that are in your name or your name are affiliated with for the past 6 months
- All car titles in which your name is associated with
- A current credit report (these can be obtained from various websites for free or a nominal charge. I can access all 3 bureaus for you for a charge of $35.00)
- A list of all property you own. This includes furniture, jewelry, guns, vehicles, etc.
- A bankruptcy education certificate. This can be obtained from numerous websites for a small fee. The classes usually take less than an hour and cost around $25.00. I recommend www.debtorwise.org.
That seems like a lot of stuff and it is. The good news is that once you provide these to me the hard part is over. I use these documents to prepare your bankruptcy forms and once I’m finished you sign and voila! no more creditor harassment.
That’s because once you sign and I file your case forms the “automatic stay” kicks in. The automatic stay is just a ‘legaleze’ word for protection. For a more complete list of bankruptcy terms, see our glossary.
You and your assets are now protected. You will need to complete one more online class and this can be taken after your case is filed from the same website you obtained your 1st class certificate from. This class usually takes less than an hour too and costs around $15.00.
The only other thing that you will have to do is attend a brief hearing called a 341 hearing or a “meeting of creditors” hearing. This is an informal meeting giving your creditors the opportunity to question you about their debts. So, usually what happens at this meeting is the Trustee will ask you a few simple questions concerning the accuracy of your paperwork and you are done with the questioning in less than 5 minutes. Easy huh?
What’s the difference between Chapter 7 and Chapter 13?
There are a number of key differences between Chapter 7 and Chapter 13 Bankruptcy. The biggest difference is the time involved. Chapter 7 is over usually within 4 months of filing.
Chapter 7 is also known as a “liquidation” bankruptcy. That is, the Trustee examines all of your property listed on the bankruptcy petition. In Oklahoma, most everything that the average household owns is exempt. Since, most likely, everything you own is exempt, you will keep everything and the creditors will end up getting $0.00. In other words, all of your property is liquidated.
If you did happen to have a property that is not exempt, that property goes to your estate and is distributed to your creditors by the Trustee. This situation does come into play on occasion.
Let’s say that you are due a tax refund. If you were to file bankruptcy before you received that refund, you would have to turn over the portion of those funds to the Trustee that was not exempt, namely, Earned Income Credit and/or the percentage of the refund that was accrued by the income you received after the filing of your case.
Be sure to ask your attorney about this if you regularly receive a refund or you are expecting one for the year you are filing. Make sure you discuss with me if you file your taxes between January 1st and the time you file taxes as you stand to lose all of your refunds if you receive that refund before the filing of your case.
Oklahoma City Chapter 13 Bankruptcy Statistics – 2022 Update
The following table provides median family income data reproduced in a format designed for ease of use in completing Bankruptcy
A Chapter 13 Bankruptcy is sort of like a debt consolidation but with some key differences. In regular debt consolidation, your creditors usually are under no obligation to play ball with you or your debt consolidation company. Even though you are making regular payments, the payments aren’t usually going to any particular creditor at any given time.
Therefore, they can and often do still pursue collection efforts up to and including filing a lawsuit against you. Being in a debt consolidation plan is no defense to such a lawsuit. However, under Chapter 13, the creditors have no option but to accept whatever the Bankruptcy Court determines your ability to pay back is.
To determine this amount, the Court looks at your income and qualified expenses and out comes a number. That number is what you pay back each month for a period of 36 to 60 months (length determined, among other things, by your income and expenses). You might be paying back 0% or 100%. I can give you a quick and free estimate on your payment plan.
So, you might ask, why would I ever want to file a Chapter 13 instead of Chapter 7? The answer to that might be – you have no choice. If you make too much money as determined by the means test or have filed a previous Chapter 7 in the past 8 years this is your only option.
Also, in some circumstances, Chapter 13 is your best option. If you are behind on mortgage payments, car payments, taxes, among others, this option will enable you to pay back the amount that you are behind, often interest-free. All the while being under total protection from things like harassing phone calls, lawsuits, foreclosures, repossessions, etc.
My firm handles cases throughout the Oklahoma City Metro Area as well as Western and Southwest Oklahoma. We can assist you with this difficult decision. Please call my office today for a free bankruptcy consultation, either in my office or by telephone – (405) 255-2380. You may also email me anytime EMAIL ME!
Chapter 13 Bankruptcy Lawyer FAQ
If you are considering filing for Chapter 13 bankruptcy, you may want to speak with an Oklahoma Chapter 13 bankruptcy lawyer. Filing for bankruptcy can be complicated, and you want someone knowledgeable and experienced on your side. A lawyer from Marty Martin Bankruptcy Law can guide you through the process.
Does Everyone Qualify for Chapter 13 Bankruptcy?
No, you have to meet certain criteria to get your Chapter 13 bankruptcy case approved by the court. First, you can’t have more than $465,275 for unsecured debts and $1,395,875 for secured debts. You will also have to submit proof that you filed your federal and state income taxes for four years before your bankruptcy filing date. Lastly, you have to show that you have enough income to repay your debts. You may use income from multiple sources, including your regular wages, Social Security benefits, pension payments, unemployment benefits or income from self-employment.
How Long Does It Take to Complete Chapter 13 Bankruptcy?
This is one of the most common questions that people have about Chapter 13 bankruptcy. Before you file, understand that it can take three to five years to complete the entire process. That is much longer than it takes to complete Chapter 7 bankruptcy. However, if Chapter 13 is the right type of bankruptcy for your situation, it is worth it to wait that long.
Do I Need to Hire a Lawyer?
Although you are not technically required to hire an Oklahoma City Chapter 13 bankruptcy lawyer, it is highly recommended. Chapter 13 bankruptcy cases can be difficult to navigate on your own. You do not want to accidentally make a mistake and get your case thrown out. An experienced lawyer can help you decide if Chapter 13 is the best option for you and assist you with the mountains of paperwork. He or she can keep track of your court dates and keep you from making mistakes.
What Will Happen If I Miss a Payment Under My Repayment Plan?
While you definitely want to avoid missing schedule payments under your Chapter 13 repayment plan, things can happen. If you know that you are going to miss a payment, you should let the court know as soon as possible. They may give you more time to catch up on your payments. If you think that your financial emergency will last a while, you may want to request a modification of your monthly payments. Your lawyer can assist you with this.
Does Chapter 13 Bankruptcy Stop Creditors from Contacting Me?
When you are behind on your payments, you may have creditors contacting you daily. This can make you even more stressed. Fortunately, once you file your bankruptcy petition, an automatic stay will be issued and creditors will be prohibited from contacting you or collecting payments from you. If creditors still attempt to contact you, let you know as soon as possible.
Schedule a consultation with an Oklahoma City Chapter 13 bankruptcy lawyer from Marty Martin Bankruptcy Law.
Contact Our Oklahoma City Chapter 13 Bankruptcy Law Office
6440 Avondale Drive, #200-1 Oklahoma City, OK 73116
Oklahoma City Chapter 13 Bankruptcy Lawyer Google Review:
Client Review“Mr Martin is amazing. He was and is still very helpful. Always willing to answer questions. I would definitely recommend his services.” Gary W.