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.