If you are considering filing for bankruptcy, it’s likely that many questions about the process, the timing and the convenience of it will arise. After all, this is an important and consequential decision that will impact your present as much as your future. If you have any questions regarding the bankruptcy filing process, including what the various types of bankruptcy chapters are, what kind of bankruptcy you should file for and how a bankruptcy attorney in Tulsa, Oklahoma can help you, we recommend sticking around and reading through this article.
What are the Different Kinds of Bankruptcy Chapters?
According to the National Foundation for Credit Counseling, “there are six chapters of bankruptcy in the United States, Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13 and Chapter 15, with Chapter 7 and Chapter 13 bankruptcy being the most common forms filed. Chapter 7 is the most common and the most basic form of bankruptcy in the U.S. [I]t provides liquidation of an individual’s property and then distributes it to creditors. Individuals are allowed to keep “exempt property.” Chapter 9 bankruptcy is a bankruptcy for municipalities – cities, towns, counties and school districts, for example. [Filers] earn protection from creditors while they develop a plan for adjusting their debts. Chapter 11 bankruptcy is a reorganization bankruptcy and is available to individuals and businesses. The debtor remains in control of business operations and doesn’t sell off all of its assets. Chapter 12 is designed for “family farmers”, and under this form of bankruptcy, the person indebted comes up with a plan to pay back creditors over three to five years.” As individuals with regular incomes, Chapter 13 bankruptcy filers are allowed to pay back parts or all of their debt and avoid foreclosure. And lastly, Chapter 15 “provides a way for dealing with cases that involve more than one country.”
What Bankruptcy Chapter Should You File?
Chapter 7 and Chapter 13 are the two most frequently used bankruptcy chapters, as most filers usually fall under two categories: those who have regular income and can arrange to pay back their debt over a certain period of time, and those who do not have the means to make monthly payments. While it’s possible that you may end up filing for one of these two chapters, it will all depend on your unique financial circumstances and what will work better for you now and in the long term.
Seeking Advice from a Bankruptcy Attorney in Tulsa, OK
To determine what bankruptcy chapter is better suited for you, it’s recommended that you meet with an experienced and knowledgeable bankruptcy attorney who can point you in the right direction and answer all of your questions. According to Lawyer Education, “bankruptcy lawyers work in and out of the court room. Out of the court room, they advise their clients in the complexities of bankruptcy laws and counsel them in reducing their debt load by liquidating assets and paying creditors.” If you are thinking about filing for bankruptcy, contacting a bankruptcy attorney in Tulsa, Oklahoma at the Henson Law Firm is the way to go.
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.