Bankruptcy Made Simple: What You Need to Know

For years, bankruptcy has gotten a bad rap, often being represented as the beginning of the end of a person’s success and financial stability. The web and public opinion at this point has been inundated with news and commentary about how bankruptcy does ‘this’ and ‘that’ to a person and to a company’s image and opportunities. The truth however, is that there is much more behind this legal proceeding than what you have bombarded with thus far. If you or someone you know is currently thinking about filing for bankruptcy, we suggest that you either stick around or send this article to your acquaintance or loved one, to learn more about what bankruptcy truly is and what it can do. Of course, reaching out to an experienced bankruptcy attorney in Tulsa, Oklahoma or to “Attorneys Near Me” can provide even more answers to your questions. 

Bankruptcy Law: Learning the Basics

According to the Congressional Research Service “U.S. bankruptcy law has two central aims. First, bankruptcy law seeks to relieve debtors of certain obligations they are unable to repay by providing them with a “fresh start” from financial difficulties. At the same time, bankruptcy law attempts to preserve the countervailing interests of creditors and other stakeholders by maximizing total creditor return in an orderly and efficient fashion.” 

Individuals, small businesses and large corporations alike may all need to file for bankruptcy at some point because despite their best efforts they might struggle to repay their debts to creditors. Bankruptcy was designed to succor these very debtors. Understanding that their cases are different from one another, its designers chose to devise a series of chapters to help debtors in their varying situations. Important to keep in mind for those thinking about filing however, is that “each Chapter has its own procedures, eligibility requirements, and forms of relief.” 

So, How Many Chapters are There and What Exactly Do They Accomplish?

According to How Stuff Works “in Title 11 of the United States Code (the Federal Bankruptcy Code), there are four bankruptcy filings: Chapter 7 – Liquidation, Chapter 11 – Reorganization, Chapter 12 – Adjustment of Debts of a Family Farmer with Regular Annual Income [and] Chapter 13 – Adjustment of Debts of an Individual with Regular Income. Reportedly, the most common filing is Chapter 7. Companies, married couples and individuals are allowed to file Chapter 7.” Out of all of the chapters, the second most popular one is Chapter 13. “As long as you have a steady, reliable income, less than $269,250 in unsecured debt and less than $807,750 in secured debt, you can file Chapter 13.” 

Considering filing? Contact the Henson Law Firm today. You can also call us at (800) 672-3103 for answers to your legal questions and concerns. 

The Henson Law Firm, PLLC is located at:

601 S. Boulder, Suite 600

Tulsa, OK 74119

Phone: 918-551-8995

Website: www.myoklahomadefenselawyer.com

*We are a debt relief law firm in Tulsa, Oklahoma.

*We help people file for bankruptcy relief under the Bankruptcy Code.