Tulsa Foreclosure and Bankruptcy Attorneys

Foreclosure and Bankruptcy Attorneys

When you file for chapter 7 and chapter 13 bankruptcy, you can keep your home as long as you are current on your mortgage payments. People who lose their home after declaring bankruptcy are usually under water and seek to have the mortgage debt discharged, or they have equity in the home which is used by the trustee to pay unsecured creditors (debtors can save their home under special homestead exemptions). Under most circumstance, filing for bankruptcy will temporarily postpone the foreclosure process. Read on to learn more about how declaring bankruptcy may help save your home.

Foreclosure and Bankruptcy Under Chapter 7 Bankruptcy

When you file for chapter 7 bankruptcy, an automatic stay will be enacted to prevent any of your creditors from collecting pre-existing debts. This includes any mortgage arrears you may owe.

Filing for chapter 7 bankruptcy will delay the foreclosure process for a short period of time. During this time, a mortgage lender can file a motion with the bankruptcy court requesting for the automatic stay to be lifted so that the mortgage lender can proceed with the foreclosure. If you do not pay the arrears owed to the mortgage lender within due time, the foreclosure process will continue.

As mentioned above, you may be able to save your home from being foreclosed on upon filing your chapter 7 petition; however, this does not protect you from the foreclosure process which occurs outside the bankruptcy court. Declaring bankruptcy will provide you with more time to pay any mortgage arrears owed if you wish to keep your home. You may also be able to keep your home by using a homestead exemption.

You must continue making monthly mortgage payments to your lender. If you fall behind on making your mortgage payments, you will lose your home through the foreclosure process.

Foreclosure and Bankruptcy Under Chapter 13 Bankruptcy

Unlike a Chapter 7 bankruptcy, filing a Chapter 13 bankruptcy may help you save your home. If you are current on your mortgage payment, you can keep your home.  If you are behind on your mortgage payment, or undergoing foreclosure, you may be able to keep your home as a result of the chapter 13 repayment plan. The chapter 13 bankruptcy repayment plan will allow you to pay on your mortgage arrears throughout the term of the payment plan (this usually last 3-5 years). You must continue to make timely mortgage payments from the date your Chapter 13 petition is filed.

If you do not wish to keep your home and stop making mortgage payments all together, then the lender will eventually file a motion for relief from the automatic stay to continue the foreclosure process.

 

Foreclosure and Bankruptcy Process

Proceeding Timeline	Action	Homeowner Options
Start of Foreclosure Proceeding	Notice of Default	Homeowner can retain property by paying any debt(s) owed to lender within a specified time period from receiving the Notice of Default.
3 Months After Notice of Default	Notice of Trustee Sale is Recorded	Homeowner can retain property by paying any debts owed to lender up until a specified period before the foreclosure sale.
Foreclosure Sale Date	Sale of Property	The property is sold to the highest bidder, or the property reverts to the foreclosing beneficiary.

 

Contact a Tulsa Bankruptcy Attorney About Foreclose and Bankruptcy

If you are considering filing for bankruptcy, contact our debt relief attorneys in Tulsa to discuss how you can keep your home upon filing your petition. Several bankrupt consumers keep their home and successfully pay off their mortgage after declaring bankruptcy. Contact us to find out about bankruptcy and foreclosure and how you can stay in your home and have your debts completely discharged.

 

Tulsa Foreclosure and Bankruptcy Attorneys

http://tulsabankruptcylawyers.net/tulsa-foreclosure-and-bankruptcy-attorneys/

Oklahoma Bankruptcy Means Test

Bankruptcy Means Test Calculator

In order to file for chapter 7 or chapter 13 bankruptcy, you must first pass the Bankruptcy means test. The test differs for chapter 7 and chapter 13 petitioners. For instance, there are certain monetary thresholds under the chapter 7 bankruptcy means test that once reached, prohibit a debtor from filing. As an alternative, the debtor may be able to file for chapter 13 bankruptcy subject to secured and unsecured debts monetary thresholds. Read on to learn more about passing the chapter 7 and chapter 13 means test to file for bankruptcy.

What is the Bankruptcy Means Test?

Under the Bankruptcy Reform Act of 2005, the “means test” was implemented to determine whether a person qualifies for chapter 7 bankruptcy. The bankruptcy means test requires a debtor to make a specified amount of income in order to qualify for chapter 7 bankruptcy. The debtor’s income is compared to the median income for a similarly sized family within their locale. If the debtor’s income is less than the median income for a similarly sized family, then they pass the means test. If a debtor does not pass the means test, then they may seek relief under chapter 13 bankruptcy (assuming the debtor passes the chapter 13 means test).

How Does Chapter 7 Bankruptcy Means Test Work?

Step 1 Income Based  

To determine your income under the chapter 7 bankruptcy means test, you will need to add up all the income you have received from all sources throughout the past six months. Such income sources include the following:

1. All wages, including salary, tips, bonuses, overtime, and sales commissions


2. Gross income from a business, profession, or farm


3. Income from child support or spousal support


4. Unemployment compensation


5. Pension and retirement income


6. Workers’ compensation


7. State disability insurance


8. Annuity payments


9. Income from rental property


10. Interest, dividends, and royalties

Once you determine your income from the past six months, you can either divide by 6 to determine your current monthly income (CMI), or you can multiply by 12 to determine your yearly income. Compare your CMI or yearly income with the median income for a similarly sized family within your locale. As mentioned above, if your income is below the median income for your family size, then you pass the means test. If it is above the median income, please proceed to step 2 below.

Step 2 Income Expenses Subtraction

If your income is more than the median income for your family size, then you will need to deduct qualified expenses from your income to determine if you meet the median income amount. Income expense deductions include some of the following:

1. Medical expenses


2. Vehicle payments


3. Housing expenses


4. Taxes


5. Health insurance


6. Child care

Check your CMI, or yearly income, after the deductions are made to see if you qualify.

How Does Chapter 13 Bankruptcy Means Test Work?

Under chapter 13 bankruptcy means tests, any debtor who earns more than the median income for their state of residency must file a 60 month repayment plan. Debtors who earn less than the median income for their state of residency must file a 36 month plan.

You will not qualify to file for chapter 13 bankruptcy if your secured debts exceed $1,149,525. Additionally, your unsecured debts cannot exceed $383,175.

Contact a Tulsa Oklahoma Bankruptcy Attorney,

We invite you to contact our bankruptcy attorneys in Tulsa to find out if you qualify to file for chapter 7 or chapter 13 bankruptcy. Our experienced bankruptcy attorneys can provide you with various debt relief options that best suit your needs. Most importantly, our attorneys are here to help you secure a stable financial future and eradicate your qualified debts within a timely manner.

Oklahoma Bankruptcy Means Test

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