Showing posts with label south tulsa bankruptcy. Show all posts

Wednesday, May 28, 2014

What Property Can I Keep When I File Bankruptcy

What Property Can I Keep When I file Bankruptcy Tulsa

Obtaining a bankruptcy Discharge While Keeping Your Property

Many people who stand to experience a significant benefit by filing Chapter 7 bankruptcy elect not to do so because they are afraid they will lose their family home, cherished family heirlooms and other property. Most of their property may have taken a lifetime of labor to acquire. This misconception is understandable because Chapter 7 Bankruptcy is commonly referred to as “Liquidation Bankruptcy.” Therefore the question for most people filing bankruptcy is What property can I keep when I file bankruptcy

In theory, a debtor liquidates his or her assets to pay off some portion of his or her unsecured debts, and liability for the bulk of this debt is permanently extinguished. As a practical matter, most Chapter 7 bankruptcies fall into the category referred to as “No Asset” Chapter 7 Bankruptcy. This term does not mean that these bankruptcy filers have no assets but rather that they have no assets that cannot be excluded from the reach of creditors through use of the bankruptcy exemption system. The National Association of Bankruptcy Trustees who oversee the bankruptcy process report that approximately ninety percent of Chapter 7 Bankruptcies involve no exempt assets. This means that debtors keep ALL of their property in these bankruptcies with the exception of any secured property like financed vehicles that the debtor elects to surrender.

In other words, the exemption system is a powerful tool for Oklahoma debtors because it allows filers to avoid unsecured debts that cannot be repaid while also being allowed to keep essentially all of the debtor’s property. Our skilled Oklahoma bankruptcy attorneys at the Kania Law Office analyze our client’s portfolio of assets to determine the most effective use of bankruptcy exemptions to facilitate our clients in keeping most or all of their property. We may even engage in pre-bankruptcy planning so that we can advise clients on how to lawfully convert non-exempt assets into those that fall under an exemption without running afoul of bankruptcy rules against fraudulent transfers.

The exemption system is particularly effective in Oklahoma because debtors can use federal bankruptcy exemptions as well as exemptions available under Oklahoma’s own exemption system. Exemptions protect certain assets from creditors in their entirety whereas other property is protected up to a certain maximum value. The exemption only needs to cover the equity in an asset. This means that motor vehicle that is valued at $8,000 with an outstanding loan of $6,500 is fully exempt if $1,500 of an applicable exemption is used to protect the vehicle.

Some of the most valuable and/or commonly used exemptions under the Kentucky exemption system include:

Real property or manufactured home (no limit on value of equity)

Certain insurance benefits

Most retirement, pension and ERISA qualified benefit plans

Asset of a business partnership

Motor vehicles up to $7,500

Clothes items up to $4,000

Furniture

Certain public benefits

Trade tools

75 percent of wages earned within ninety day prior to filing bankruptcy (judge may allow more)

Because this is simply a small sampling of assets that may be protected through use of a bankruptcy exemption, the best option is to consult with an experienced Tulsa Bankruptcy Attorney to determine if you have assets that cannot be protected by a bankruptcy exemption. If a couple is married both partners can generally claim a full set of exemptions (with some exceptions).

If you have questions about whether particular assets can be protected in a Chapter 7 or you have other concerns about the bankruptcy process, our experienced Tulsa Bankruptcy Lawyers can answer your questions and analyze the best debt solution for your individual situation. Our Oklahoma Bankruptcy Attorneys offer a free initial consultation so that we can answer your questions, evaluate your needs and explain your options. We invite you to contact us at South Tulsa Bankruptcy 918-739-8984 or fill out the ask a bankruptcy attorney form today!

What Property Can I Keep When I File Bankruptcy

http://tulsabankruptcylawyers.net/what-property-can-i-keep-when-i-file-bankruptcy/

Filing Bankruptcy and Finding a Bankruptcy Attorney

How to Select an Oklahoma Bankruptcy Attorney When Deciding To File Bankruptcy

Many people who are overwhelmed by debt and fighting off aggressive creditor collection tactics have never even spoken to a lawyer. When debtors lack familiarity with the legal process, they can be understandably hesitant to consider bankruptcy as an option to reduce a crushing debt load, protect their family home from creditors and reclaim control of their financial future. With the right Oklahoma bankruptcy attorney guiding you through the process, bankruptcy often provides an efficient and effective remedy for serious financial hardships. Since hiring an Oklahoma Bankruptcy Attorney is not something with which people have experience, we have provided some suggestions for selecting a bankruptcy attorney in Oklahoma if Filing a bankruptcy is for you

Narrow Focus or Specialization: Bankruptcy is a discrete area of practice that is based on the Federal Bankruptcy Code, bankruptcy court rules and past decisions and other sources. Bankruptcy attorneys who represent consumer debtors in Chapter 7 and Chapter 13 on a regular basis will be familiar with the specific laws, regulation and court rules that can impact your rights and remedies. When filing bankruptcy Tulsa Attorneys who regularly represent clients in the bankruptcy process might be more familiar with subtle complications that can prove important.

Avoid Non-Attorney Document Preparation Services: Sometimes businesses that are not run by an attorney will offer bankruptcy document preparation. The phrase “caveat emptor” (buyer beware) always applies in such situations because bankruptcy involves a lot more than completing the bankruptcy forms. The first step is to analyze your situation to determine if a bankruptcy even makes sense given your financial situation. If debtors do not have enough of the types of debt that can be eliminated in a Chapter 7 bankruptcy, for example, it might be the case that bankruptcy is not their best option. Further, bankruptcy attorneys analyze a debtor’s assets to identify property that might be left unprotected against creditor claims and devise strategies to avoid loss of critical assets during the bankruptcy process. While attorneys are evaluated before being licensed to practice law and regulated to ensure both competence and ethical standards, there is no assurance that the owner of a non-attorney document service will possess the experience, training and expertise to give you sound legal advice.

Beware of Illusory Attorneys: While most bankruptcy law firms employ qualified staff members, including paralegals, secretaries and others, your attorney is the one who will analyze your situation, make recommendations and represent you in front of the bankruptcy trustee or judge. Consumers are advised to be cautious if they are never given an opportunity to consult with or even meet the bankruptcy attorney who is supposedly handling their Chapter 7 or Chapter 13. Always avoid internet bankruptcy referral services. If you cant speak to your bankruptcy lawyer when you call the number found on the internet, move along. Truth is a bankruptcy referral service sends your financial information to a number of attorneys or sells the information to other services.

Seek an Appropriate Comfort Level: While there are many qualified bankruptcy attorneys in Tulsa, each is unique in their personality, demeanor and approach. While competence in terms of the number of bankruptcies a firm files is an important criteria when evaluating the experience of a bankruptcy attorney, you also need to choose someone with whom you feel comfortable. The bankruptcy process will generally take a few months or even longer if you file a Chapter 13 payment plan so you need to select an attorney and law firm you want to work with during your bankruptcy process.

If you are interested in Filing Bankruptcy Our affordable Oklahoma Bankruptcy Attorneys offer a free initial consultation so that we can answer your debt questions, evaluate your needs and explain your options. The Bankruptcy professionals at South Tulsa Bankruptcy Lawyers invite you to contact us at (918) 739-8984 or fill out this form today!

Filing Bankruptcy and Finding a Bankruptcy Attorney

http://tulsabankruptcylawyers.net/filing-bankruptcy-in-tulsa-oklahoma/

Chapter 13 Bankruptcy Attorneys

Tulsa Chapter 13 Bankruptcy Attorneys

The bankruptcy attorneys at South Tulsa Bankruptcy Law Office have helped several Oklahomans utilize chapter 13 bankruptcy debt relief solutions to provide them with a fresh financial start. When you retain a debt relief attorney from Tulsa Bankruptcy Law Office, he or she will work diligently to help you eradicate your debts while preserving your lifestyle. Call (918)739-8984 or fill out this form to speak with a bankruptcy attorney today.

Chapter 13 Bankruptcy Debt Relief

Under Oklahoma State and federal law, unsecured and secured debts can be discharged under chapter 13 bankruptcy.

Unsecured debts are debts that are not linked to property. Such debts may consist of the following: medical bills. credit card debts, utility bills, collection agency accounts, student loans (only in a limited circumstances), business debts, tax penalties and unpaid taxes, unsecured loans, most judgments, and balances on repossessed property.

Secured debts are debts that are linked to property in which you own (collateral property). Thus, if you default on a loan, a creditor can seize the collateral property. Such debts may consist of the following: home mortgage, car loans, store charges which contain a security agreement, and personal loans from finance companies in which you pledged personal property or real property in order to secure the loan.

Oklahoma Chapter 13 Eligibility Criteria

There are several steps you must take to properly have your debts discharged under chapter 13 bankruptcy in Oklahoma. During your initial consultation with our bankruptcy attorney, the attorney will determine whether you are eligible for the discharge of your debts under chapter 13 bankruptcy.

First, the bankruptcy attorney will ask you whether or not you have filed for chapter 13 within the past 2 years. If you have, you will have to wait until this time period elapses.

If you have yet to file chapter 13, our attorney will then determine whether or not you meet the monetary threshold to file for bankruptcy relief. In Oklahoma, you are eligible to file for chapter 13 relief as long as your unsecured debts are less than $360,475 and secured debts are less than $1,081,400.

It your debts meet this monetary threshold, you will have to take the “means test” to see if you have enough disposable income for a chapter 13 repayment plan.

The chapter 13 Bankruptcy means test requires you to calculate your current monthly disposable income. If your monthly disposable income is less than Oklahoma’s monthly median income for your specific family size, then your repayment plan will be for a 3 year period. If your monthly disposable income is greater than the median monthly income in Oklahoma, then your repayment plan will be for a 5 year period.

Prior to your bankruptcy petition being filed, you will have to attend a credit counseling course. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, all consumers who file for chapter 13 must take a credit counseling course within six months BEFORE filing a petition.

You must take a course that is approved by the Department of Justice U.S. Trustee Program. You can take the course online, by phone, or in person. The course will review your current financial situation, alternate debt relief options besides bankruptcy, and a personal budget plan. Upon completing the course, a Certificate of Completion will be presented to you which must be filed with your bankruptcy petition.

Oklahoma Chapter 13 Bankruptcy Process

Upon determining that you qualify to file for chapter 13 bankruptcy in Oklahoma, our attorney will begin to prepare your bankruptcy petition.

Our attorney will collect all of your financial information relevant to your petition such as a credit report, monthly bill statements, and bank account statements. Once your petition is filed, an automatic stay will be enacted. The automatic stay protects you from creditors collecting pre-existing debts from you. It also prohibits creditor harassment, wage garnishments, and possible foreclosure during your declaration of bankruptcy.

Filing for chapter 13 bankruptcy will temporarily postpone the foreclosure process. It will provide you with more time to pay any mortgage arrears owed before your home is foreclosed on. You will lose your home if you fail to make your required mortgage payments that come due after the chapter 13 filing.

Once The Chapter 13 Bankruptcy is Filed, Whats Next

After your petition is filed, you will be appointed to a bankruptcy trustee that will oversee your case. The trustee’s main goal is to ensure your creditors are paid as much as possible prior to the discharge of your debts.

Your trustee will administer a “341 Meeting of Creditors” in which the trustee will ask you a variety of questions pertaining to your assets and debts. The trustee may take possession of non-exempt assets you own and sell them to pay your creditors.

After your creditor’s meeting, you, the chapter 13 trustee, and your creditors will come to court for a hearing regarding your repayment plan. You will be required to submit a repayment plan to the Bankruptcy Court for approval.

Once your plan is approved, you will make fixed payments to the bankruptcy trustee over a designated period of time. The trustee will distribute the payment to your creditors according to your plan. Your debts will be discharged upon the completion of all payments under your plan.

Contact Oklahoma Chapter 7 Bankruptcy Attorney

For more information on whether or not you should file for chapter 13 in Oklahoma, contact our law office. Call (918)739-8984 or fill out this form to speak with a bankruptcy attorney today.

Chapter 13 Bankruptcy Attorneys

http://tulsabankruptcylawyers.net/chapter-13-bankruptcy-attorneys/