What Should You Keep in Mind About Bankruptcy in Tulsa, Oklahoma?

According to AP News “the mystery isn’t why so many people file for bankruptcy each year. It’s why more people don’t. Each year, only a fraction of the Americans who could benefit financially from bankruptcy actually seek relief. Economists say some don’t file because collectors aren’t aggressively pursuing them, while others may strategically delay filing because bankruptcy could benefit them more down the road. Many bankruptcy attorneys have a much simpler explanation: Fear, a lack of information and misplaced optimism keep people from getting a fresh start.” If you are considering filing for bankruptcy, we highly recommend reaching out to a bankruptcy attorney in Tulsa, Oklahoma who can educate you on the process and advise you on throughout it. 

Why Do People File for Bankruptcy?

People often mistakenly assume that the reason why someone ends up filing for bankruptcy has to do with bad spending habits, and poor mismanagement of their money, but that’s more often than not, not the case. The reality is that most people end up filing for bankruptcy due to large and usually unexpected medical expenses, pay cuts, loss of employment, emergencies and divorce. There may be another two or three reasons that lead most people to file for bankruptcy, but these are the most common ones. And the truth is that while bankruptcy is often accompanied by a negative stigma, it can provide immense relief to people facing these situations and many others. Especially if you are someone who receives calls from collectors on a daily basis, is about to get their home foreclosed on, is fearful of having their vehicle repossessed, or having their assets garnished, bankruptcy declaration may be the best option for you. 

How Do You Initiate the Process?

Bankruptcy filing is a pretty straightforward process. While the process itself will vary depending on the bankruptcy chapter you are filing, what’s important to remember is that in the United States there are six bankruptcy chapters: chapter 7, chapter 9, chapter 11,  chapter 12, chapter 13 and chapter 15. Chapter 7 and chapter 13 are without a doubt the most popular among filers. According to Experian, “chapter 7, which is known as liquidation bankruptcy, involves selling some or all of your property to pay off your debts. This is often the choice if you don’t own a home and have a limited income.” While chapter 13, on the other hand, “also known as a reorganization bankruptcy, gives you the chance to keep your property (including secured assets like your home and car) if you successfully complete a court-mandated repayment plan that lasts between three and five years.” 

If you don’t understand exactly what this means for your specific situation, we recommend meeting with an experienced bankruptcy attorney at the Henson Law Firm who can assess your current situation and point you in the right direction. 

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.