What People Fail to Say When Talking About Bankruptcy in Tulsa, Oklahoma

For a long time the bankruptcy process and bankruptcy filers have been shamed. Those who have declared are often casted as failures, or irresponsible. Yet the fact is that the bankruptcy process was designed to lend a helping hand to people who needed it, and those who file generally do so because they are facing extenuating and difficult circumstances outside of their control, situations they never thought possible or planned for. Because of the stigma around it, there are many factors that those who oppose recurring to it, have failed to mention, but if you or someone you know is seriously considering filing, we recommend learning about such features. An experienced bankruptcy attorney in Tulsa, Oklahoma or “Attorneys Near Me” can always answer any pertinent questions and point you in the right direction. 

Bankruptcy Explained 

In writing about the bankruptcy process, United States Courts explains that “a fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial “fresh start” from burdensome debts. The Supreme Court made this point about the purpose of the bankruptcy law in a 1934 decision: [I]t gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.” Through the bankruptcy process a debtor can either have their debts discarded or come to an arrangement with the courts to repay their debt over a prudent time period. So, while bankruptcy has unfortunately become synonymous with fiasco or the end be all, it can actually provide a way out, for someone who feels they are drowning in insurmountable debt. Certainly, bankruptcy could potentially impact your credit, or your chances to qualify for a home, but first, that isn’t always the case, and both outcomes could be amended with the help of a specialist such as a bankruptcy attorney. What could be more difficult to confront is piling debt and interests. 

Do Most Filers Live Extravagant or “Spendthrift” Lifestyles?

Bankruptcy filers are often seen or presented as people who lost everything while trying to live past their means. This is the case for some filers, but certainly not for the majority or even a lot of those who declare. The vast majority of those who declare bankruptcy do so for one of a few reasons: loss of income, medical expenses, divorce. The COVID-19 pandemic, a crisis that most of us regular folk never saw coming, seemed to trigger all of these three outcomes. But even before the pandemic, these occur all the time. Sudden closure and layoff from a company you’ve worked for your whole life, a cancer diagnosis, a union that ends when you least expected it, any of these things can and often do result in most bankruptcy declarations.

Bankruptcy isn’t a one size fits all kind of proposition. Per Investopedia, bankruptcy filings in the United States fall under one of several chapters of the Bankruptcy Code, including Chapter 7, which involves the liquidation of assets; Chapter 11, which deals with company or individual reorganizations; and Chapter 13, which arranges for debt repayment with lowered debt covenants or specific payment plans.” To determine what chapter fits you best, reach out to a seasoned bankruptcy attorney in Tulsa, Oklahoma at the Henson Law Firm, and for any legal concerns, call 800-672-3103. 

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.