Oklahoma Garnisments and Bankruptcy

Payroll Garnishments and Bankruptcy

Stop Oklahoma Garnishments by Bankruptcy

For many debtors, the final straw before declaring bankruptcy is the filing of  Oklahoma garnishments. For most debtors, this takes the form of a wage garnishment. In the case of a wage garnishment, a judgment creditor (someone who has won a lawsuit against the debtor), instructs the debtor’s employer to withhold wages and pay them directly to the creditor. However, this is not the only kind of garnishment that can be levied.

Oklahoma Garnisments and Bank Accounts

For some debtors, particularly those who are unemployed, or who may have significant assets in a checking or savings account, a judgment creditor may try to garnish a bank account. This process works in a similar fashion to a wage garnishment. First, the creditor must get a judgment in a lawsuit. The creditor must then find any bank accounts that the debtor has. This could be from their own internal information, or as simple as calling all the banks in the debtor’s local area until they find the right one. The creditor must then serve the bank or financial institution with a writ of execution and file it with the court. Once the bank receives the garnishment, it must determine if it is their customer, and if so, if that customer has any assets at the bank.

If the bank determines that the target of the Oklahoma garnishments (writ of execution) is one of their customers, and that person has assets, the bank must place a hold on those assets, and after a period of time, usually twenty one days, the bank then turns over those funds to the creditor. It is important to know that while a bankruptcy can halt an ongoing wage garnishment, a bank garnishment is a one time procedure. If a creditor successfully garnishes a debtor’s bank account there is no procedure (absent the creditor or bank failing to follow their own proper procedure) that can recover the money, even filing bankruptcy. A bankruptcy can prevent any future bank garnishments, but it cannot retrieve money already garnished.

Impact of Oklahoma Garnisments

For many debtors, a wage garnishment is an irritating, but not devastating occurrence, as the judgment creditor is only allowed to take 25% of disposable (post-tax) income. But a bank garnishment has no such limits. It can very well empty a debtor’s bank account to the last cent, wiping out hard earned savings or necessary funds for living expenses.

If you think you have been sued by a creditor, or worse yet, if a judgment has been awarded to a creditor against you, it is important to consult with a bankruptcy attorney as soon as possible. A timely bankruptcy filing can protect your assets and your financial future, but if a judgment has been rendered, time is of the essence. If you find yourself the target of judgments from your creditors, contact a bankruptcy attorney as soon as possible.

Contact a Tulsa Bankruptcy Lawyer about your Oklahoma garnisments

If you are facing Oklahoma garnishments a bankruptcy may help you stop this type of collection effort. The bankruptcy lawyers at South Tulsa bankruptcy lawyers offer their clients a free consultation about Oklahoma Garnishments.

Oklahoma Garnisments and Bankruptcy

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

Oklahoma Bankruptcy Attorney and Debt Management

Oklahoma Consumers – What You Should Know About Debt-Management Programs and Credit Card Debt

Both Chapter 7 and Chapter 13 Bankruptcy provide a means for Oklahoma consumers to eliminate most, if not all of their debt including, but not necessarily limited to, credit card debt, personal loan debt, and unpaid medical expenses. Many Oklahoma consumers have steady employment but are simply unable to overcome credit card debt that has plagued them for years. Credit card debt is a burden shared by many Oklahomans, and it is often difficult to find a solution that will allow them to successfully tackle their credit card debt and end the downward spiral that puts them into further debt. While filing for bankruptcy enables individuals to eliminate credit card debt, there is one alternative to bankruptcy that some Oklahoma credit card-holders are turning to in order to try and eliminate their credit card debt. This alternative is known as a debt-management program (DMP).

If you are an Oklahoma consumer and you have credit card debt that you are having trouble managing or eliminating, enrolling in a debt-management program may be an option for you, and you should consider discussing all of your debt-elimination options with an Oklahoma Bankruptcy Attorney. If you decide that a debt-management program is the best way for you to manage and eliminate your credit card debt, then you should thoroughly research the various types of debt-management agencies that are available to credit card debtors. As with most things in our world today, there will always be some debt-management agencies that are not legitimate and are only trying to take advantage of consumers. However, there are also some legitimate agencies that will help you eliminate your credit card debt in the most feasible way possible. More often than not, a legitimate debt-management agency will be a not-for-profit institution.

How Do Debt-Management Programs Work in Oklahoma?

Your Oklahoma bankruptcy attorney will tell you that if you enroll in a debt-management program, you will likely need to close the credit card accounts that you are seeking to pay off. Instead of making monthly payments to each of your creditors, you will be making one payment to a debt-management agency. That payment will then be distributed to your creditors directly from the agency. Some agencies provide consumers with a loan to pay off their credit card debt, so the monthly payments then go to pay off the loan. However, other agencies do not provide a loan, but instead charge a reasonable monthly fee to negotiate with your creditors, lowering your interest rates and decreasing your monthly payments. This arrangement will allow you to consolidate your credit card debt into one monthly payment, and pay off your credit card debt a little sooner than you otherwise would.

An Oklahoma Bankruptcy attorney will tell you that is important to remember that while some creditors will agree to participate in your debt-management program, many creditors will not agree to participate. In such cases, you will have to continue paying that credit card account separately or negotiate with that creditor directly to agree upon a reasonable repayment plan. Further, it is also important to ensure you are fully aware of the terms and conditions of your debt-management program. A qualified Oklahoma Bankruptcy Attorney can walk you through the entire process and ensure you understand all of your rights and obligations.

Once you have paid off all of your outstanding credit card balances, you might be able to reopen the credit card accounts by approval, but many consumers choose to avoid credit card use as much as possible, fearing that they may find themselves returning to the same downward spiral. As such, understanding how credit card debt impacts your life is a key factor to remember when deciding whether or not to reopen your existing credit card accounts. An Oklahoma bankruptcy attorney will advise that unlike in a bankruptcy where all your credit card debt is eliminated you will still have to be concernd about other creditors who refused to settle. In this case your credit score may cause others not extend credit to you at all. Moreover, the credit card company may still seek to collect the debt through garnishments etc.

Contact an Oklahoma Bankruptcy Attorneys About Debt Reduction:

Our Oklahoma bankruptcy attorney can advise you on each and every option available to you when it comes to bankruptcy or debt reduction programs in Oklahoma. Call for a free consultation with an Oklahoma bankruptcy attorney.

Oklahoma Bankruptcy Attorney and Debt Management

http://tulsabankruptcylawyers.net/oklahoma-bankruptcy-attorney-debt-management/

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/