The Must Knows About Bankruptcy Declaration in Tulsa, Oklahoma

The bankruptcy filing process often gets a bad rep, when in reality it does a great deal for the people who need it most. While no one wants to find themselves in a position where they must file for bankruptcy, sometimes filing is better than the alternative. Receiving calls from collectors day and night, having your earnings garnished, having your home be foreclosed on, and the many other consequences of failing to repay your debts tend to pose a greater risk and threat than bankruptcy filing. If you or someone you know is facing these outcomes or fearing the possibility of facing them, we recommend reaching out to a seasoned and compassionate bankruptcy attorney in Tulsa, Oklahoma. 

Bankruptcy 101: Bankruptcy in the United States

According to Econlib “bankruptcy is common in America today. Notwithstanding two decades of largely uninterrupted economic growth, the annual bankruptcy filing rate has quintupled, topping 1.5 million individuals annually. Recent years also have seen several of the largest and most expensive corporate bankruptcies in history. Bankruptcy law serves three basic purposes: (1) to solve a collective action problem among creditors in dealing with an insolvent debtor, (2) to provide a “fresh start” to individual debtors overburdened by debt, and (3) to save and preserve the going-concern value of firms in financial distress by reorganizing rather than liquidating.” 

Bankruptcy Chapters: 7 Through 15 

Per the National Foundation for Credit Counseling, also known as the NFCC, “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 provides liquidation of an individual’s property and then distributes it to creditors. Chapter 9 bankruptcy is a bankruptcy for municipalities – cities, towns, counties and school districts, for example. Chapter 11 bankruptcy is a reorganization bankruptcy, and is available to individuals and businesses. This form of bankruptcy is designed for “family farmers” and “family fisherman” that are under financial distress. In chapter 13 bankruptcy, or a “wage earner plan”, an individual that has regular income is allowed to develop a plan to pay back parts, or all, of their debts. Chapter 15 bankruptcy, added to the U.S. bankruptcy code in 2005, provides a way for dealing with cases that involve more than one country.” 

Whether you file chapter 7 or chapter 15 bankruptcy will depend on your personal circumstances. If you are unaware of what bankruptcy chapter you should file, meeting with a bankruptcy attorney is paramount. They will assess your finances, and determine the best approach for you. For information on an attorney who can help, contact the Henson Law Firm today. 

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.