Filing for bankruptcy may seem like an intimidating process, especially when you’re uninformed and have no guidance to start with. Although it is frequently portrayed as a negative development, it doesn’t have to be. In fact, there are various perks when it comes to filing for bankruptcy. A knowledgeable and experienced bankruptcy attorney can update you on the benefits, but in this article, we would like to share some of the basics. Stick around if you would like to learn more about the different bankruptcy chapters, the most common filings and more.
Perks of Filing for Bankruptcy with the Help of a Bankruptcy Attorney in Oklahoma:
Filing for bankruptcy is not as troublesome as it sounds. Going through the process without the help of an attorney, however, can make things more complicated and time consuming. Nonetheless, we are here to provide some vital information on the process including the types of bankruptcy chapters available to file, as well as what are the most common kinds and in what circumstances you should consider filing for those.
Per 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.” Depending on your financial situation, a bankruptcy attorney will recommend that you file a specific type of bankruptcy chapter over another.
About Chapter 7 and Chapter 13 Bankruptcy Filing:
Most bankruptcy filers fall under two categories, those who don’t have regular income and therefore cannot commit to paying a monthly fee to creditors, and those who do have a source of monthly income. These two types are better known as Chapter 7 and Chapter 13 bankruptcy. Chapter 7, as defined by the Internal Revenue Services, “…provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert the debtor’s assets into cash for distribution among creditors.” Chapter 13, on the other hand, which is also referred to as the “wage earner’s plan”, allows individuals to pay some or all of their debts through a repayment plan over a period of three to 5 years. In most cases, individuals filing for these bankruptcy chapters will get to keep valuable assets such as their home and or vehicle.
While this process can seem somewhat overwhelming and traumatic, if you tackle it with the help of a professional bankruptcy attorney it can be more effective and less time consuming. If you or someone you know is facing insurmountable debt and need the assistance of a bankruptcy attorney in Tulsa, Oklahoma, we suggest reaching out to the Henson Law Firm.
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.