Oklahoma Bankruptcy Exemptions

Oklahoma Assets Exempt from Bankruptcy

Protecting certain assets i.e., keeping them from creditors is a feature of filing a Chapter 7 bankruptcy in Oklahoma. You should know which assets you can keep and under what circumstances you can keep them. The following is a review and a general outline that lists “exempt assets”… assets that you can keep from your creditors.

Oklahoma Bankruptcy Exemptions are divided into classes and amounts and the amount is based on the concept of “equity”. For example, if you have a car that you could sell for $2000 and you have a $1500 loan on the car, your equity is $500. Equity is the amount left over after you would have sold the asset and paid back the loan. Most exempt assets in bankruptcy are quoted in terms of equity.

Oklahoma Bankruptcy Exemptions For Your Home – The first and usually largest exemption in an Oklahoma bankruptcy is the Homestead exemption. No matter where you live in Oklahoma, if your home is your primary residence, the exemption for the equity you have in your home is unlimited. In addition, you can exempt the value of your acreage up to 160 acres. If however, you live in a city, town or village your acreage exemption is limited to $5000.

Oklahoma Bankruptcy Exemptions For Your Motor Vehicle- You can exempt up to $7,500 in equity in a motor vehicle.

Oklahoma Bankruptcy Exemptions For Your Income – You can exempt up to 75% of your wages based on the average wage you earned for the past 90 from creditors. You may be able to exempt more if you can prove that your income is so low that garnishing up to 25% would present an economic hardship for you.

Exemption For Your Retirement Account – You can exempt the full value of your qualified (pre-tax) retirement plan.

Exemption for Personal Property – Personal property are things like clothing $4000, furniture and electronics, and one year’s supply of food.

Double The Exemption if Assets are Owned Jointly – For married couples, if your assets are in joint name you can double the exemption amount.

As long as credit card companies insist on charging double-digit interest rates, no one should be ashamed of filing for bankruptcy. Oklahoma law makers know this and our state has some of the most advantageous terms in the nation for individual who simply cannot withstand the burdens of crushing credit card debt. If you are contemplating wiping the slate clean, or are merely concerned that you cannot pay your bills on time every month, please give us a call for a free consultation. Filing for Chapter 7 bankruptcy often makes good economic sense and we can advise and assist you every step of the way from the initial filing to taking positive measures to restoring or maybe even eventually improving your credit rating. Please call us today.

Free Consultation: Contact us about Oklahoma Bankruptcy Exemptions;

If you are considering bankruptcy we can help. The bankruptcy attorneys at South Tulsa Bankruptcy can take you through the process of deciding what is and what is not an exempt asset. Call today for your free consultation.

Oklahoma Bankruptcy Exemptions

http://tulsabankruptcylawyers.net/oklahoma-bankruptcy-exemptions/

Student Loans and Oklahoma Bankruptcy

Discharging Student Loans and Oklahoma Bankruptcy

South Tulsa Bankruptcy Lawyers

Student loans are one of the largest sources of personal debt in the United States.  For many people who are exploring bankruptcy, student debt is a large portion, and in some cases, the majority of their debt.  Many potential bankruptcy debtors are unsure whether or not their student loans, federal or private, can be discharged.  Recent statements by the President and by the Department of Education concerning bankruptcy and student loans have further confused this situation.  It is important for potential debtors to have a clear understanding of what the laws and rules are concerning student loans and Oklahoma bankruptcy before filing, so as to have clear expectations for what their financial situation will be post bankruptcy.

First, it is critical to understand that regardless of Presidential memoranda or Department of Education guidelines, the basic law surrounding student loans in bankruptcy is unchanged since the bankruptcy reforms of 2005.  Specifically, 11 USC §523(a)(8) states that any education loan made, insured, or guaranteed by the federal government cannot be discharged, “unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents.”  After 2005, that law also applies to any student loan made by a private entity.  Thus, any and all student loans, federal or private, are subject to a “undue hardship” test when a debtor seeks to discharge them in bankruptcy.

The statue does not define what an “undue hardship” consists of, and the Supreme Court has yet to issue a ruling in a bankruptcy case on the issue.  Thus, it is left up to the Federal Circuit courts to determine what standard should be used for determining undue hardship.  The most commonly used test comes from a New York case from 1987, Brunner v. New York State Higher Education Services Corp., (831 F.2d 395, 2d Cir. 1987).  In Brunner, the Second Circuit determined that an undue hardship consists of three factors:

1. Inability to maintain a minimal standard of living if forced to repay the loan.


2. Additional circumstances exist indicating that the state of affairs is likely to persist for a significant portion of the repayment period; and


3. Debtor has made good faith efforts to repay.

This test is, in and of itself, vague, particularly “additional circumstances” and “good faith efforts.”  Since the Brunner ruling in 1987, the courts have generally determined that “additional circumstances” is effectively equal to disability.  If a debtor is unable to work or earn a living due to illness or injury, and that condition is likely to be long term or permanent, then the “additional circumstances” test is met.  In such cases, “good faith efforts” have often been interpreted widely to mean any attempt to repay the loans, though the longer and more consistent loan repayment has been prior to bankruptcy, the better.  Some courts have suggested that other standards, such as a confluence of catastrophic events outside the debtor’s control (such as an unexpected divorce combined with illness of a child and loss of income) could constitute an “undue hardship”, particularly with past evidence of an intent to repay the loans, but until the Supreme Court rules on the issue, the Brunner test is still the most widely used.

Because student loans are presumed to be non-dischargeable, a debtor must file an adversarial proceeding with the bankruptcy court to have them considered.  The Department of Education has, in the past, frequently contested such proceedings in an attempt to prevent discharge.  A Presidential Memorandum from President Obama in March of 2015 ordered the Department of Education to clarify the circumstances under which they would continue to challenge such filings.  On July 7, 2015, the Department released a memo stating that they would limit their challenges to cases where they disagreed that an undue hardship existed, and further, not pursue cases when the costs to fight the adversarial proceeding in bankruptcy court would exceed one third of the total amount of the loan due.

While that sounds promising, it doesn’t actually represent any real change in the status of student loans and Oklahoma bankruptcy.  First, private loans aren’t covered by these guidelines at all, because the Department of Education has no control over them.  Second, while these guidelines are being publicly released for the first time due to the Presidential Memorandum, they are essentially how the Department of Education has operated for years.  None of these guidelines change federal law or particularly modify the Brunner test.

Therefore, for a non-disabled debtor, student loans, whether federal or private, are effectively exempt from discharge.  Disabled debtors have more options.  The Department of Education, in accordance with the guidelines it released on July 7, are issuing forgiveness for federal student loans if they determine that an undue hardship exists.  This loan forgiveness is technically outside the bankruptcy, but is often requested in conjunction with a bankruptcy filing.  If the Department of Education determines that an undue hardship does not exist, a disabled debtor could still file an adversarial proceeding to attempt to discharge the debts through the court, though, as suggested above the Department of Education will still contest those proceedings if it deems it to be in the financial interest of the government.  Private loans, even for disabled debtors, are still likely to be challenged in all cases, and few, if any, private lenders have a procedure or policy in place to forgive the debt for disabled debtors.

In conclusion, despite Presidential memos and government guidelines, the best rule of thumb is that student loans are not dischargeable.  If you have a disability and believe that you may qualify to have your loans forgiven or discharged, speak to your bankruptcy attorney regarding this matter.

Student loans are one of the largest sources of personal debt in the United States.  For many people who are exploring bankruptcy, student debt is a large portion, and in some cases, the majority of their debt.  Many potential bankruptcy debtors are unsure whether or not their student loans, federal or private, can be discharged.  Recent statements by the President and by the Department of Education concerning bankruptcy and student loans have further confused this situation.  It is important for potential debtors to have a clear understanding of what the laws and rules are concerning student loans before filing, so as to have clear expectations for what their financial situation will be post bankruptcy.

First, it is critical to understand that regardless of Presidential memoranda or Department of Education guidelines, the basic law surrounding student loans in bankruptcy is unchanged since the bankruptcy reforms of 2005.  Specifically, 11 USC §523(a)(8) states that any education loan made, insured, or guaranteed by the federal government cannot be discharged, “unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents.”  After 2005, that law also applies to any student loan made by a private entity.  Thus, any and all student loans, federal or private, are subject to a “undue hardship” test when a debtor seeks to discharge them in bankruptcy.

The statue does not define what an “undue hardship” consists of, and the Supreme Court has yet to issue a ruling in a bankruptcy case on the issue.  Thus, it is left up to the Federal Circuit courts to determine what standard should be used for determining undue hardship.  The most commonly used test comes from a New York case from 1987, Brunner v. New York State Higher Education Services Corp., (831 F.2d 395, 2d Cir. 1987).  In Brunner, the Second Circuit determined that an undue hardship consists of three factors:

1. Inability to maintain a minimal standard of living if forced to repay the loan.


2. Additional circumstances exist indicating that the state of affairs is likely to persist for a significant portion of the repayment period; and


3. Debtor has made good faith efforts to repay.

This test is, in and of itself, vague, particularly “additional circumstances” and “good faith efforts.”  Since the Brunner ruling in 1987, the courts have generally determined that “additional circumstances” is effectively equal to disability.  If a debtor is unable to work or earn a living due to illness or injury, and that condition is likely to be long term or permanent, then the “additional circumstances” test is met.  In such cases, “good faith efforts” have often been interpreted widely to mean any attempt to repay the loans, though the longer and more consistent loan repayment has been prior to bankruptcy, the better.  Some courts have suggested that other standards, such as a confluence of catastrophic events outside the debtor’s control (such as an unexpected divorce combined with illness of a child and loss of income) could constitute an “undue hardship”, particularly with past evidence of an intent to repay the loans, but until the Supreme Court rules on the issue, the Brunner test is still the most widely used.

Because student loans are presumed to be non-dischargeable, a debtor must file an adversarial proceeding with the bankruptcy court to have them considered.  The Department of Education has, in the past, frequently contested such proceedings in an attempt to prevent discharge.  A Presidential Memorandum from President Obama in March of 2015 ordered the Department of Education to clarify the circumstances under which they would continue to challenge such filings.  On July 7, 2015, the Department released a memo stating that they would limit their challenges to cases where they disagreed that an undue hardship existed, and further, not pursue cases when the costs to fight the adversarial proceeding in bankruptcy court would exceed one third of the total amount of the loan due.

While that sounds promising, it doesn’t actually represent any real change in the status of student loans.  First, private loans aren’t covered by these guidelines at all, because the Department of Education has no control over them.  Second, while these guidelines are being publicly released for the first time due to the Presidential Memorandum, they are essentially how the Department of Education has operated for years.  None of these guidelines change federal law or particularly modify the Brunner test.

Therefore, for a non-disabled debtor, student loans, whether federal or private, are effectively exempt from discharge.  Disabled debtors have more options.  The Department of Education, in accordance with the guidelines it released on July 7, are issuing forgiveness for federal student loans if they determine that an undue hardship exists.  This loan forgiveness is technically outside the bankruptcy, but is often requested in conjunction with a bankruptcy filing.  If the Department of Education determines that an undue hardship does not exist, a disabled debtor could still file an adversarial proceeding to attempt to discharge the debts through the court, though, as suggested above the Department of Education will still contest those proceedings if it deems it to be in the financial interest of the government.  Private loans, even for disabled debtors, are still likely to be challenged in all cases, and few, if any, private lenders have a procedure or policy in place to forgive the debt for disabled debtors.

In conclusion, despite Presidential memos and government guidelines, the best rule of thumb is that student loans are not dischargeable.  If you have a disability and believe that you may qualify to have your loans forgiven or discharged, speak to your bankruptcy attorney regarding this matter.

Free Consultation Oklahoma Bankruptcy and Student Loans

If you have questions regarding Oklahoma bankruptcy and Student Loans call us today. At South Tulsa Bankruptcy Law Office we understand how hard a financial crisis is. We can help you get a chapter 7 fresh start or chapter 13 reorganization of your debt. Get a Free Consultation 918-739-8984

Student Loans and Oklahoma Bankruptcy

http://tulsabankruptcylawyers.net/student-loans-and-oklahoma-bankruptcy/

Oklahoma Bankruptcy Options and Your Assets

Protecting Your Assets in an Oklahoma Bankruptcy

When you file for bankruptcy, the court and the creditors will heavily scrutinize your assets. In exchange for assistance with your debts, either through discharge or reorganization, you must be willing to negotiate with creditors. If you have valuable assets, the bankruptcy system does allow you various means of legally protecting them.

First things first: do not commit bankruptcy fraud. If you make big purchases on credit cards, accumulate cash advances or request large personal loans right before filing for bankruptcy, the court will be suspicious of your spending activity. In addition, if you try to protect your assets by transferring all of them to friends or family members on the eve of your Oklahoma chapter 7 bankruptcy, creditors may attempt to seize these assets.

When you file for bankruptcy, all of your assets and debts become your bankruptcy estate. The value of your bankruptcy estate must be distributed by the trustee to your creditors. However, bankruptcy does allow exemptions. Depending on the value of your estate, you may be able to avoid relinquishing any property to creditors.

Bankruptcies are governed by both state and federal law. The Bankruptcy Code is a federal law, and federal bankruptcy judges oversee the process. However, Oklahoma is permitted to pass its own bankruptcy regulations. In Oklahoma, you are required to use Oklahoma bankruptcy exemptions and federal non-bankruptcy exemptions when valuing your bankruptcy estate. Oklahoma and federal bankruptcy exemptions include:

• The full value of your primary residence unless you also use your primary residence for your business, which would then reduce the exemption to $5,000


• Up to 1 acre of land if you live in a town but up to 160 acres if you live on a farm or ranch


• Cemetery plots


• Engagement rings


• Books and photos


• Clothing


• Home defense guns


• Livestock for family, not business, use


• Medical equipment


• College savings plans


• Furniture, decorations, computers, and other personal property


• Personal injury awards amounting up to $50,000


• Individual Development Accounts


• Food


• Funeral benefits


• War bond payroll savings


• Up to $7,500 in equity in a vehicle


• Various retirement accounts such as 401(k)s and IRAs worth up to $1,245,745


• Crime compensation


• Social Security and other disability payments


• Unemployment pay


• Worker’s compensation


• Earned income tax credit


• Farming tools


• Enough seeds to last one harvest


• Business equipment like computers, fax machines, filing cabinets, and more


• 75% of your income earned in the 3 months preceding filing


• Spousal and child support


• Annuities


• Group life insurance proceeds


• Property owned by your LLP or GP business


• And more

This is only a partial list. As you can see, there is an astonishing number of bankruptcy exemptions that may apply to your estate. While your bankruptcy estate may seem fairly valuable after you compare your income with your liabilities, the exemptions can greatly reduce your income. In addition, these exempted properties cannot be seized in a Chapter 7 bankruptcy. Thus if you are seeking a total discharge of unsecured debts, you will be able to protect your home from seizure. You may also be able to protect your car depending on its worth and the overall value of your estate.

The best way to prepare for bankruptcy is to plan ahead. By securing your assets before the threat of bankruptcy enters your mind, you can protect them down the road. Placing some of your valuable assets like inheritances into a trust fund will transfer ownership out of your hands. Money in a trust fund will not be calculated as part of your estate. In addition, placing money in a trust fund will preserve your funds for the probate process as well.

Free Consultation And Your Assets in Oklahoma Bankruptcy;

If you are considering an Oklahoma bankruptcy keeping your assets is very important. Out attorneys will go through your assets and debts and apply the bankruptcy exemptions so that you don’t lose your home, car, retirement and most other personal property in bankruptcy. Call today for a free consultation.

Oklahoma Bankruptcy Options and Your Assets

http://tulsabankruptcylawyers.net/oklahoma-bankruptcy/

Tulsa Lawyer discusses Debt Solutions

Evaluating Your Debt Solutions Short of an Oklahoma Bankruptcy

If you are struggling to pay your bills, you have likely grown accustomed to constant harassing calls from creditors. You want to pay them off and stop the endless ringing of your phone, but you simply don’t have the money. Your credit score slips lower and lower as the delinquencies pile up. Every month, you find yourself making financial sacrifices or juggling between whether to pay one bill or another. If you have grown tired of fighting your debt, you don’t need to resign yourself to another day of avoiding the phone and mailbox. By choosing the right debt solutions, or bankruptcy you can legally and responsibly address your debt concerns and work toward a brighter future.

First, there’s always the option of paying the past due balances on your bills to become current again, then making timely monthly payments thereafter. However, if you were able to remain current on all of your bills, you wouldn’t have fallen behind in the first place. Thus, you will need to find a debt solution that is more aligned with your budget and goals.

A debt settlement plan is part of a group of debt solutions that allows you to offer a lump sum payment to the creditor in exchange for a cancellation of the debt. You can often negotiate a payment that is 30-40% of the total amount you owe. If you are several months behind and believe that the creditor is likely to sell your debt soon, you may be able to settle for a very low amount. Creditors sell debt for pennies on the dollar, then write off the debt. The creditor may be incentivized to take your low offer if it is higher than what they would get if they sold your debt to a new creditor. The debt will show as settled on your credit report, and the account will be closed. This method requires you to have cash up-front, which many individuals do not have.

A debt-snowball plan allows you to slowly but surely pay off debt over time. You begin by making only the minimum payment on each debt. Any leftover money you have each month is applied to the lowest balance. Once that balance is paid off in full, you roll the leftover money over to the next lowest balance. You continue this until your highest balance is paid. Your leftover money will increase as more debts are paid off, allowing you to allocate more money to paying off the balances each month. Again, this method requires you to have available money on hand. If you cannot pay your minimum payments now, the debt-snowball plan will not be feasible.

A debt management and debt solutions plan is an option for individuals who cannot make their minimum payments. A debt solutions or debt management plan is usually arranged by a credit counselor for a fee. First, the creditor interviews you, obtains information on your income and expenses, and computes the maximum amount you can spend monthly on your debt. On your behalf, the credit counselor then negotiates with the creditors to reduce both your interest rates and monthly payments. You will pay a lump sum to the credit counselor each month, who will then distribute individual payments to the creditors in amounts agreed upon with the creditors and according to a schedule. All accounts included in the plan will be closed. In addition, many creditors have stringent requirements for participating in a plan. For instance, some may not allow you to have any open lines of credit while others will require you to drastically cut down on living expenses to prove you are making progress toward being financially stable and savvy. The debt management plan will likely pay off all of your debts in 3 to 4 years, though you can stretch it out for longer to reduce the monthly payments. The debt solutions or debt management plan will not improve your credit score. In fact, the creditors might not even update your credit report to reflect that you are making monthly payments through the plan.

Free Consultation About Debt Solutions in Oklahoma

All of these options come with their own setbacks. The most significant con is the requirement that you have available funds to pay the bills in some form. If paying even a small amount is an extreme hardship for you, bankruptcy in Oklahoma will likely be your best option. Bankruptcy can assist you with either discharging your debt through a chapter seven or restructuring them into manageable payments in order to wipe your slate clean. An experienced bankruptcy attorney can counsel you on which debt solution works best for you and how to file for bankruptcy. Call us today for a free Oklahoma bankruptcy consultation.

Tulsa Lawyer discusses Debt Solutions

http://tulsabankruptcylawyers.net/tulsa-lawyer-discusses-debt-solutions/

Tulsa Chapter 7 Bankruptcy

Tulsa Chapter 7 Bankruptcy Requirements Using the Means Test

Chapter 7 bankruptcy is one of the most attractive forms of bankruptcy because it allows for the complete discharge of most unsecured debts. Many liken a Tulsa Chapter 7 bankruptcy to starting fresh with a clean slate. However, in order to be able to be eligible for a Chapter 7 bankruptcy, you must have an income below the federal mandated threshold. In order to calculate eligibility, the bankruptcy judge will use the means test. If you fail the means test, you will not be permitted to proceed with your Chapter 7 petition. Instead, you should explore other options, such as a Chapter 13 bankruptcy, which is targeted more towards debtors who have high incomes but struggle to pay their bills.

The means test uses a special formula that considers a number of factors, including income, assets, expenses, and debts. It is not a simple income level threshold. As such, by using the skills and expertise of a bankruptcy attorney, you may be able to structure your assets to not only become eligible for Chapter 7 but also protect the property that is most valuable to you from your creditors.

The means test is not designed to weed out people who are poor. Rather, the means test weeds out people who are able to pay their debts. If you are wealthy but have astronomical expenses, you may be unable to pay your debts. If your monthly income is below your state median income level for the state of Oklahoma and your specific household size, you have established prima facie eligibility. You can file for Chapter 7 without any further calculations in the means test.

If your monthly income is over the median, you may still qualify. The means test will first calculate your monthly income. This is known as your current monthly income (CMI). To calculate your CMI, the means test will take the average of your monthly income for the past 6 months. The following are all included in your monthly income:

 

• Wages, tips, overtime pay, commissions, bonuses


• Investment income such as interest or dividends


• Rental property income


• Retirement income


• Pension income


• Net income from your personal business


• Child support


• Alimony


• Worker’s compensation


• Unemployment


• Social Security payments


• Disability payments


• Annuities

The means test will then calculate your monthly expenses. The means test will subtract your average monthly expenses from your average monthly income. The result is your disposable income. Disposable income can be used to pay your debts. If your disposable income is too high, you will likely be able to pay some or all of your debts and thus won’t be eligible for Chapter 7.

An online means calculator can help you do a quick means test. However, it is best to consult with a bankruptcy attorney to ensure you are including all eligible income and expenses.

Tulsa Chapter 7 Bankruptcy Consultation

If you are eligible for Tulsa Chapter 7 bankruptcy according to the means test, you may proceed with your filing. You will be required to undergo credit counseling prior to filing, and if your credit counselor drafts a debt management plan, you must include that as part of your filing. However, just because you are eligible does not mean that Chapter 7 bankruptcy is the right course of action for you. The Oklahoma bankruptcy court in a Chapter 7 proceeding may demand that you liquidate your assets to satisfy creditors before receiving the benefit of a discharge. In addition, Chapter 7 bankruptcy will remain on your credit report for 8 years. Only a bankruptcy attorney can properly counsel you on your options and advise you on your best course of action.

Tulsa Chapter 7 Bankruptcy

http://tulsabankruptcylawyers.net/tulsa-chapter-7-bankruptcy/

Judgement Liens Oklahoma Bankruptcy

Forgiving Judgement Liens Oklahoma Bankruptcy

For many people considering filing for bankruptcy, the catalyst is being sued by a creditor.  For creditors who have exhausted all other collection options, filing and winning a lawsuit gives them powerful tools to use against the debtor as a “judgment creditor”.  The two most widely used, and most concerning for debtors, are garnishment and judgment liens. Judgement liens and Oklahoma bankruptcy go hand in hand. Many times judgement liens are what causes the bankruptcy and the bankruptcy will discharge most if not all judgement liens.

Garnishments come in two forms:  bank garnishments and wage garnishments.  A bank garnishment occurs when a judgment creditor takes funds directly from the debtor’s bank accounts.  If a judgment creditor believes that the debtor has funds with a particular bank, be it in checking, savings, or some other type of account, the judgment creditor will send a request to the bank to confirm whether or not those funds exist.  The bank is required to comply with this request and answer truthfully.  If funds do exist, the creditor can then take from those funds until they are exhausted, or the judgment is satisfied.  The only silver lining for a debtor is that these requests are singular events.  The judgment creditor must make a new request every time they wish to seek funds from a bank account in this manner.

That is not the case with wage garnishments.  If a judgment creditor knows that the debtor is employed, the creditor can use a similar type of request as with a bank garnishment, only this one is directed at the debtor’s employer.  This “request” is actually an order from the court directed at the employer to withhold a portion of the debtor’s net pay, up to 25%, and pay it directly to the creditor each pay period until the judgment is satisfied.  The employer must comply with the order and must set aside the funds specified by the court.  Furthermore, this is ongoing.  The creditor is not required to file a new garnishment with every paycheck, though they would be required to file one with a new employer if the debtor switched jobs.

The other tool that judgment creditors get access to is a judgment lien.  A judgment lien is a fall back measure that can insure the creditor is eventually paid, even if they cannot effect a wage or bank garnishment.  If the judgment creditor determines that the debtor owns real estate, be it a home, business, or empty plot of land, they can file their judgment with the appropriate county land records office.  By filing their judgment, the creditor “clouds the title”.  What that means is that the property cannot be sold to another buyer without first satisfying the judgment, as a real estate transaction can’t occur without clear title.   That way, even if the creditor cannot collect through garnishments, they can still collect when the property is eventually sold.

These collection methods can sound drastic and unfair to debtors.  Fortunately, there is a solution for most of them in bankruptcy.  As for garnishments, filing bankruptcy cuts off all future garnishment attempts.  That cut off is permanent for any debt that is dischargeable, though it should be noted that for a non-dischargeable debt, the cut off only lasts during the pendency of the bankruptcy, usually about 90 days.  This applies to both wage and bank garnishments.  Filing, however, does not force the creditor to return money garnished before the bankruptcy was filed.  Those funds were legally collected and are rightfully the property of the creditor.  Thus, it is important to file as quickly as possible when faced with a potential garnishment situation happens (ideally, before the lawsuit is even filed).

Judgment liens can be dealt with in bankruptcy as well, assuming the debt is dischargeable, but it requires an additional process.  While the bankruptcy may discharge the debt underlying the lien, it does not, on its own, remove the lien.  For that to take place, a “motion to avoid lien” must be filed.  The most critical step in filing a motion to avoid lien is determining that one needs to be filed in the first place.  Therefore, it is strongly advised that any potential bankruptcy candidate who owns real estate contacts their county land records office to check whether any liens (other than an authorized lien, like a mortgage) have been placed against the property.  By knowing that a motion to avoid lien needs to be filed during the initial bankruptcy proceedings, debtors can save a great deal of time and money by avoiding having to reopen the bankruptcy years later to remove the lien before sale of the property.

Lawsuits can be a scary prospect for potential Oklahoma bankruptcy candidates, but they don’t have to be.  With smart, fast action and good planning, the consequences of a creditor’s lawsuit can be avoided in bankruptcy.

Judgement Liens Oklahoma Bankruptcy; Free Consultation

If you are considering filing a bankruptcy and need a free consultation regarding judgement liens Oklahoma bankruptcy call us today. Call 918-739-8984

Judgement Liens Oklahoma Bankruptcy

http://tulsabankruptcylawyers.net/judgement-liens-oklahoma-bankruptcy/

Bankruptcy Attorneys in Oklahoma Discuss The Meeting of The Creditors

Meeting of the Creditors and Filing Bankruptcy

Right after a person files for bankruptcy, the court does several things.  It issues a case number, which identifies your bankruptcy, it notifies your creditors by mail that you have filed, it assigns a bankruptcy trustee to your case, and it schedules a hearing called the “First Meeting of the Creditors.”  That meeting of the creditors, often referred to as a “341 hearing” after the section of the bankruptcy code that creates it, is often a source of worry and tension for debtors unfamiliar with the bankruptcy process.  Fortunately, for the vast majority of consumer debtors filing Chapter 7 bankruptcy, the 341 hearing is a simple and relatively painless process that doesn’t need to be a source of concern.

The 341 hearing has three purposes.  First, it is, as its full name implies, the first chance for all the creditors to have a meeting with the debtor.  To many, that sounds like they will be questioned by all the people to whom they owe money, but for Chapter 7 debtors, this is practically never the case.  Rarely, a creditor unfamiliar with the process may appear at the meeting, or a secured creditor (like one holding a mortgage or auto loan) may appear to ask a specific question, but even those appearances are fleetingly rare.

The second purpose is for the appointed trustee to meet with the debtor and the debtor’s attorney.  The trustee is an attorney appointed by the court to handle the day to day dealings of bankruptcies that don’t require the attention of either the Bankruptcy Judge, or the Federal Bankruptcy Trustee, who generally oversees Chapter 13 cases.   In a Chapter 7, the trustee’s job is to determine if there is any non-exempt property that must be turned over to the bankruptcy court for sale and distribution to the creditors.  He or she makes this determination after reviewing the debtor’s petition and after meeting with the debtor.

The process of that meeting of the creditors is fairly simple.  The debtor and his or her attorney arrive at the designated meeting site, usually a conference room at the bankruptcy court.  They wait to be called by the trustee, who may take them into a private room, or just to a table at one end of the conference room.  In some jurisdictions, the trustee may even call more than one debtor at a time and conduct the meetings in groups.  The trustee will place the debtor under oath, and ask to see the debtor’s driver’s license and social security card.  It is very important that the debtor bring those two documents to the meeting, as the trustee will be forced to halt and reschedule if they are not present.  After confirming the debtor’s identity, and that the social security number matches the one on the petition, the trustee will ask the debtor if he or she was provided with information about bankruptcy, if he or she read the bankruptcy documents, if he or she signed them, and if the documents are an accurate representation of the debtor’s property and creditors.

In some cases, the trustee may have questions concerning taxes, real estate, or personal property.  The trustee may address these questions to the debtor’s attorney or directly to the debtor.  Occasionally, the trustee may ask the attorney to provide further information after the hearing, such as a tax return filed late, or ask for clarification about property or creditors.  Once the trustee has asked the necessary questions, he will dismiss the debtor, ending the meeting.  The entire process usually takes just a few minutes.  It is entirely possible that the debtor will spend more time waiting to be called than actually in the meeting.  After the meeting, the debtor’s attorney may remind him or her to bring any additional documents necessary, or if the debtor education course has not been completed, to finish it and send the certificate to the attorney for filing.  The 341 hearing may sound intimidating, but in reality, it is a quick and simple procedure on the road to financial stability through bankruptcy and the bankruptcy process in Oklahoma.

 

Bankruptcy Attorneys in Oklahoma Discuss The Meeting of The Creditors

http://tulsabankruptcylawyers.net/bankruptcy-attorneys-in-oklahoma-discuss-the-meeting-of-the-creditors/