Credit Lawyer Oklahoma City, OK
If you are struggling with your personal finances and are worried about what filing for bankruptcy might do to your credit score, you undoubtedly have some questions about the bankruptcy process and what it entails. Thankfully, you can get all of your questions answered when you schedule a consultation with a credit lawyer Oklahoma City, OK residents trust. The team at The Law Offices of Marty D. Martin is here to help you navigate all of your bankruptcy and credit repair concerns.
What exactly is bankruptcy?
Bankruptcy is a federal procedure that allows debtors to eliminate and/or catch up on their debts and restructure their finances. There are two different types of bankruptcy for consumers, Chapter 7 and Chapter 13. Once you file, you are federally protected from creditors and the potential punishments that come with overdue debts. Speaking with an experienced Oklahoma City, OK credit lawyer can help you to determine which approach is better for your situation.
What does Chapter 7 bankruptcy entail?
Known as liquidation bankruptcy, Chapter 7 is reserved for debtors who don’t earn much income and have little ability to pay back their debts in the future. The Court has the power to sell off a filer’s non-exempt assets before forgiving their eligible debts. Thankfully, most Chapter 7 filers don’t own many non-exempt assets. As a result, many people choose to file under Chapter 7 as their eligible debts are completely forgiven once non-exempt assets have been sold.
What does Chapter 13 bankruptcy entail?
Those who file Chapter 13 must restructure their debts and pay those debts back over a 3-5 year period before the remainder of their eligible debts will be forgiven. When filing, you and your Oklahoma City, OK credit lawyer will have to provide the Court with a detailed payment plan which will be determined based on your income and value of your property. Your Oklahoma City, OK credit lawyer will work with your creditors to figure out what kind of regorganization works for both you and them. Those who choose this option tend to keep all of their assets, which provides a sense of security and peace of mind.
Can I choose what kind of bankruptcy to file, or is the option chosen for me?
There are certain eligibility requirements when it comes to filing for bankruptcy. For example, those with a higher standard of living are only eligible for Chapter 13 as the court system believes they will have the assets to repay their debts within five years or less. If you are unsure on which option works the best for you, a consultation with an experienced Oklahoma City, OK credit lawyer can help you.
Will bankruptcy stay on my credit record?
Yes, bankruptcy will stay on your credit report for anywhere between seven to 10 years, depending on what option was filed. However, our Oklahoma City, OK credit lawyer team can help you to determine how to rehabilitate your credit as quickly as possible in the wake of a bankruptcy filing.
Common Mistakes to Avoid When Filing for Bankruptcy
If you are considering filing for bankruptcy, it’s important to do proper research about the process and determine if it’s still in your best interests. It’s also crucial to know what not to do before filing. Here are some common mistakes a credit lawyer in Oklahoma City, OK sees bankruptcy clients make.
Lying About Your Assets
When you file for bankruptcy, you’re required to disclose all of your assets and income. This will determine your ability to pay your creditors. The worst thing you can do in this scenario is lie about the assets you have. If you leave out any of your assets and the court finds out, your case could get dismissed.
Maxing Out Your Credit Cards
Just because you have available credit, doesn’t mean you should rack it up before you file for bankruptcy. In fact, as a credit lawyer in Oklahoma City, OK can confirm, making any purchases on credit within 90 days of filing bankruptcy won’t be included in the bankruptcy debts. That means you will be required to pay off the credit debt you recently racked up. To avoid this, don’t use a credit card once you’ve decided to file for bankruptcy.
Repaying Family Members Before Filing for Bankruptcy
A credit lawyer in Oklahoma City, OK has also seen many people pay back family members they borrowed money from before filing for bankruptcy. It’s understandable that you want to settle your debt with family members, but this could backfire. If the trustee finds out that you repaid anyone before bankruptcy, the payment won’t be allowed to go through.
,Filing With the Wrong Chapter
When you file for bankruptcy, you have the option of filing Chapter 7 or Chapter 13. There’s distinct differences between the two and it’s important to understand them. Chapter 7 is best for people with low incomes while Chapter 13 is better for those who want to save their homes. If you’re not sure which Chapter to file, talk to a credit lawyer in Oklahoma City, OK.
Transferring Assets Out of Your Name
Just like you shouldn’t hide any of your assets, you also shouldn’t attempt to transfer them into a family member’s name. While this might seem like a good idea at first, it comes with serious ramifications. For one thing, your bankruptcy case will get dismissed. The court may also accuse you of perjury and you may face hefty fines or jail time.
Not Hiring a Lawyer
While you aren’t required to hire a lawyer to file bankruptcy, it’s certainly in your best interest. Bankruptcy is a complex process and you want someone knowledgeable on your side. He or she will help you file under the right chapter, assist you with the paperwork and help you get the best possible outcome with your case.