While most people think of filing bankruptcy as the end of their financial life, declaring bankruptcy can sometimes be the savviest and most viable choice for individuals or companies who are struggling to keep their heads above water. Before pursuing this avenue, we highly recommend conducting thorough research to revise all your options and consult with a seasoned bankruptcy lawyer in Oklahoma. We understand that having to declare bankruptcy may seem like a horrid outcome, but there are benefits to filing bankruptcy that you may have glossed over in the past. Throughout this article, we hope to communicate what some of those advantages are.
What is Chapter 13 Bankruptcy?
According to America’s Debt Help Organization “Chapter 13 allows those with enough income to repay all or part of their debts an alternative to liquidation. It’s bankruptcy for those whose biggest problem is dealing with creditors’ demands for immediate payment, not lack of income.” Whereas Chapter 7 bankruptcy supports and safeguards those who do not count with the income to make regular monthly payments, Chapter 13 bankruptcy affords debtors more time to restructure and resolve their debts.
How Does Chapter 13 Bankruptcy Work?
Chapter 13 bankruptcy which is also commonly known as the “wage earner’s plan”, according to Credit Karma “provide[s] filers the chance to restructure debt into a repayment plan that lasts up to five years.” The article goes on to say that “[d]ebtors can set their own repayment plans in Chapter 13 – with the approval of the court. […Debt will fall into three categories, priority debt, secured debt and payments toward unsecured debt.” This option similar to Chapter 7 bankruptcy lets filers retain their most valuable positions, such as their home and vehicles.
How to File Chapter 13 Bankruptcy
There are about seven key steps a Chapter 13 filer must follow. The applicant must first complete credit counseling 180 days before filing, they should consult a Chapter 13 bankruptcy attorney who will help complete the paperwork, file a Chapter 13 bankruptcy petition, submit and follow the repayment plan, meet with creditors as coordinated by the court assigned trustee, attend a confirmation hearing and wait for the court to discharge the debts. Some of the benefits of filing Chapter 13 bankruptcy are getting to keep your home, consolidating payments, and improving the impression of your credit reports.
We hope this information can help you make sound choices when it comes to your financial future. Consider consulting a knowledgeable and sharp bankruptcy attorney, such as the Henson Law Firm, PLLC to determine if filing Chapter 13 bankruptcy can greatly reduce the stress you are currently experiencing as a result of cumulative debt.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.