The Tl;dr on Bankruptcy: Bankruptcy Basics to Get You Started on the Process

When it comes to financial and legal proceedings, there’s often an overload of information out there. So much to know, too little time to cover it all. This can sometimes make it harder for people to pursue the tools and resources that will make it possible for them to improve and prosper. Bankruptcy is one of those proceedings. This is why if you or someone you know is even thinking about filing for bankruptcy, we recommend reaching out to a knowledgeable and experienced bankruptcy attorney in Tulsa, Oklahoma or to “Attorneys Near Me” before you embark on the process. They will be able to break down the bankruptcy process, and provide you with the assistance you need. 

How it All Started: Bankruptcy & Its Beginnings 

According to United States Courts “Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times since its enactment. It is the uniform federal law that governs all bankruptcy cases.” 

Ok…So How Does it Work?

Per Debt.org, those who need to file for bankruptcy must do the following: “compile financial records: List your debts, assets, income and expenses. [Then] get credit counseling within 180 days before filing: You can’t file for bankruptcy until you’ve gone through a required bankruptcy counseling. [Next] file the petition: If you haven’t hired a bankruptcy lawyer yet, this might be the time to do it. Legal counsel is not a requirement for individuals filing for bankruptcy, but you are taking a serious risk if you represent yourself. [Finally, you’ll need to] meet with creditors: When your petition is accepted, your case is assigned to a bankruptcy trustee, who sets up a meeting with your creditors.” 

Is it a One Size Fits All Kind of Approach? 

Not even close. Bankruptcy is designed to help people, small businesses, and multinational corporations alike. In the United States, there are six bankruptcy chapters available. These chapters are Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15. Chapter 7 and Chapter 13 are by far the most popular bankruptcy chapters. Chapter 7 is also known as “liquidation bankruptcy”. This chapter liquidates an individual’s property and gives the funds to creditors. This property does not include “exempt property” which individuals are allowed to keep. Exempt property typically includes vehicle, home, reasonably necessary clothing and household goods, pensions and others. Chapter 13, bankruptcy, on the other hand, is known as the “wage earner’s plan”. This is for people who earn regular income and can, with the help of a court appointed trustee, design a repayment plan to pay their debt in 3-5 years time. 

If you or someone you know is thinking about filing but doesn’t know where to start, reach out to the Henson Law Firm. You can also contact 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.