Oklahoma Bankruptcy and Personal Injury Settlements

Oklahoma Bankruptcy and Personal Injury Settlements

One of the leading causes of bankruptcy in the United States is medical debt.  A sudden illness can dump thousands of dollars in medical bills on an unsuspecting family, ruining even carefully planned finances.  For others, being involved in a car accident or sustaining some other kind of personal injury can lead to a  nightmare of hospital bills, insurance claims, and lawsuits.  Though most people today have car and health insurance, it can take months to settle with an insurance company or the responsible party and even longer for a full lawsuit.  In the meantime, medical bills not covered by insurance can pile up, not to mention all the financial problems caused by missed work or simply being unable to attend to the responsibilities of life.

The question often asked by potential bankruptcy clients in an injury situation is “How does my Oklahoma bankruptcy and personal injury settlements get impacted when I file bankruptcy?”  This is an important question, as the money could be thousands of dollars.  The answer is that Oklahoma bankruptcy law provides relief for debtors in these unfortunate circumstances in the form of an exemption. Bankruptcy Exemptions are provisions in the bankruptcy laws which allow a debtor to keep certain kinds of property.  Exempt property cannot be taken by the trustee and used to pay off creditors.  Commonly used exemptions include the homestead exemption, which covers a debtor’s home, vehicle exemptions, and retirement savings exemptions.  For personal injury victims, the Oklahoma laws specify that a debtor may exempt his interest in a claim for personal bodily injury, death, or workers’ compensation claim up to $50,000.  This protection includes both claims that have yet to be settled, adjudicated, or paid, and claims that have been paid out before the bankruptcy is filed.

For those claims that have been paid out before the bankruptcy filing, however, special precautions must be taken.  Only money that can be identified as specifically coming from the settlement or judgment can be exempted.  The best way to identify the money is keep it separate from other assets by keeping it in its own separate bank account.  That way, when preparing the bankruptcy, the attorney can note that the account is exempted, and can account for all the funds in it.  If the money is mixed with other bank accounts or assets that aren’t exempt, it could be taken by the trustee.

It is also important to note what the exemption does not cover.  While it covers the claim for injury or death up to $50,000, it does not cover funds in excess of $50,000.  So, if a debtor has a claim for $75,000, $25,000 would be subject to seizure by the trustee to pay creditors.  It also does not cover awards for exemplary or punitive damage.  Suppose, rather than settling, the previous debtor won a judgment of $75,000, with $25,000 for their injury, and $50,000 in punitive damages.  The debtor would only be able to exempt the $25,000.  While the personal injury exemption is not perfect, it does provide a measure of protection for those who find themselves in dire financial circumstances while waiting for a settlement or judgment.

Contact a Bankruptcy Lawyer in Tulsa, Oklahoma

If you are interested in more information on Oklahoma bankruptcy call us today. We will set up a free consultation and discuss bankruptcy options with you. Call 918-739-8984

Oklahoma Bankruptcy and Personal Injury Settlements

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Tulsa Bankruptcy | Removing Liens From Your Home

Removing Liens From Your Home in an Oklahoma Bankruptcy

For many debtors exploring their options on bankruptcy, the event that pushes them to contact a Tulsa bankruptcy attorney is being garnished by a creditor. A garnishment occurs when a creditor successfully sues the debtor and obtains a judgment. The garnishment allows the creditor to deduct a portion of the debtor’s wages, usually 25% per pay period, until the debt is satisfied. For many people seeking bankruptcy, this financial hardship pushes them to contact an attorney and start the process. However, for debtors who own their own home, a garnishment may not be the worst of their problem. Our Tulsa bankruptcy attorney offers free bankruptcy advice so just call.

In addition to a garnishment, a creditor who successfully sues a debtor who owns real property, such as a home, can attempt to collect by placing a “judgment lien” against the property. A judgment lien is a non-consensual lien placed with county records against the debtor’s property with county records, almost always without the debtor’s consent or knowledge. If that lean is not satisfied or released in some way, it can prevent the debtor from selling the house in the future. Given the fact that most debtors in this situation don’t know that the lien is in place, it can come as a nasty surprise when the debtor tries to sell.

Fortunately, there are remedies for this situation in bankruptcy. A monetary judgment by a creditor is dischargeable so long as the underlying debt is dischargeable. So, if the lawsuit was over a medical bill, credit card debt, unpaid auto loan, or other type of dischargeable obligation, the judgment can be made to go away. However, this does not make the lien automatically go away. Because the lien is a separate legal instrument from the debt itself, a separate process must occur to terminate it. That process is called the Motion to Avoid a Lien. In order to file a motion to avoid a lien, a debtor’s bankruptcy attorney will require a copy of the deed (which he or she should have from the bankruptcy filing). Once the bankruptcy case has been filed and the meeting of creditors conducted, the attorney can then draft the motion and file it with the court. The court will give the creditor two weeks to respond to the motion, and if there isn’t a response, the court will then grant the motion. That officially terminates the lien, and should clear up any problems it caused with selling the house.

For some people, because they were never informed that a lien existed in the first place, they can proceed all the way through their bankruptcy, have it discharged and closed, and only find out years later about the lien when they try to sell their property. This can come as a surprise, as most people simply assume that the bankruptcy took care of all of their problems (though as noted above, absent the motion, the lien is not terminated). Fortunately, the courts grant relief for people in that situation. If the lien was from a debt that was discharged in the person’s bankruptcy, even if that bankruptcy was years ago, the court will allow the case to be reopened, and a motion to avoid the lien filed. This does cost a reopening fee, but that fee is certainly worth paying if it clears away the impediment to selling the affected property.

A final word of advice for those seeking bankruptcy services: know your situation. If you are a homeowner, and you have been sued by a creditor, and that creditor obtained a judgment, it is entirely possible that they have filed a lien against your home. If you think that could be the case, contact your county’s land records office and have them search for any liens against your property. With the proper knowledge, you can start your bankruptcy process better informed and better able to inform your attorney what you need help with. As always, if you have questions about your financial status and are considering bankruptcy, you should contact a local attorney who can provide you with the help you need.

Contact a Tulsa Bankruptcy Attorney

If you live anywhere in Oklahoma our Tulsa bankruptcy attorney can help you file either a chapter 7 bankruptcy or a chapter 13 bankruptcy. Our Tulsa bankruptcy attorney will sit down with you and help determine if bankruptcy is the best sollution for you. To get a free consultation call today and speak to a Tulsa bankruptcy attorney.

Tulsa Bankruptcy | Removing Liens From Your Home

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Consumer Bankruptcy in Tulsa Oklahoma

Consumer Bankruptcy Attorneys Can Advise You of Your Options

Oklahoma Bankruptcy Options

The decision whether to file either consumer bankruptcy or business bankruptcy is not one that people arrive at easily. Let’s face it — sometimes things happen to us over which we have no control and which we could not have predicted. It is at times like this that the services of an experienced bankruptcy attorney become necessary to help you sort through the way out of a difficult time.

Individuals and businesses alike can file bankruptcy. Earlier this year, an Oklahoma City retirement home filed for Chapter 11 business bankruptcy after receiving a $15.1 million judgment. The home will remain open and operate for the duration of the bankruptcy, although it is still not clear whether or what portion of the judgment it will have to pay.

Bankruptcy is not a “one-size-fits-all” solution. Many consumer bankruptcy as well as businesses are able to sort through their financial difficulties and come to agreements with their creditors without having to file. Sometimes this isn’t possible, either because the creditor is uncooperative or the debt is so great that it appears, and very well may be, hopeless.  Both consumer Bankruptcy and business bankruptcy provid several options for helping you put your debts behind you and getting you back on your feet.

There are six different types, or Chapters, of bankruptcy filings. The most common forms of bankruptcy for individuals of average means are Chapter 7 and Chapter 13, with Chapter 7 accounting for 65% of all consumer filings. Many businesses also file for Chapter 7 if the weight of their debt makes it impossible to continue to operate.

Chapter 7 Consumer Bankruptcy in Tulsa Oklahoma

A Chapter 7 bankruptcy consumer bankruptcy usually lasts from three to six months. It is called a “liquidation” because some of your property may be sold by the bankruptcy trustee to repay a portion of your debt. Any unsecured debts (debts for which there is no security, or collateral, such as a car or house) will be discharged, or erased. Credit card debt and medical expenses are typical types of unsecured debt. Each state has property that is exempt from being liquidated in the bankruptcy. The state exemptions include the homestead exemption, which generally protects real property or a manufactured home to an unlimited value, but it cannot exceed one acre in the city, town, or village, or 160 acres elsewhere. Also protected are a motor vehicle up to $7,500, and other specific personal items such as clothing, books, household and kitchen furniture, etc. In order to file a Chapter 7 bankruptcy action, you must meet certain financial criteria outlined in the U.S. Code which demonstrate that you have insufficient disposable income to fund a Chapter 13 repayment plan.

If your income is too high for a Chapter 7, you will most likely be placed in a Chapter 13. However, if your secured debt exceeds $1,149,525, or your unsecured debt exceeds $383,175, you cannot file Chapter 13, but may have to use Chapter 11. The amount you would have to pay depends on your earnings, the amount of the debt, and the amount your unsecured creditors might have received had you filed Chapter 7. In Chapter 13, you can choose to keep your property which serves as security for a loan if you can repay what is owed through the bankruptcy.

Do I Need a Consumer Bankruptcy Attorney in Tulsa Oklahoma

The federal bankruptcy laws are complicated, to say the least. If you make a mistake in your filing, you can have your case dismissed, and you would lose the statutory protections from your creditors that bankruptcy affords. If you are being pursued by creditors, you could be subject to liens, wage garnishments, and other actions that can destroy your ability to function financially. Get the best protection you can by consulting with a team of capable Tulsa Bankruptcy Attorneys today from South Tulsa Bankruptcy Lawyers.

Consumer Bankruptcy in Tulsa Oklahoma

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

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

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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

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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

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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

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