In Oklahoma, bankruptcy claims determine how consumers will settle their debts. The chapters provide unique methods for eliminating debts through either a new payment plan or liquidation. A local attorney can provide answers for consumers who want to file chapter 13 bankruptcy.
What Debts are Settled Through Chapter 13 Bankruptcy?
Common debts that lead consumers to file for bankruptcy include overdue tax payments, the prospect of foreclosure, and overdue auto loan payments. However, consumers with high volumes of debt could utilize the chapter to restructure their payment plans and make them more affordable.
What are the Major Differences Between Chapter 13 and 7?
Chapter 13 offers a structured payment plan that could last up to five years depending on the court’s determination. Chapter 7 is a method of selling assets to pay off debts within six months. The automatic stay lasts far longer in chapter 13 than in chapter 7. Additionally, the consumer doesn’t have to worry about losing assets in chapter 13. In chapter 7, the court determines what assets are sold to settle the debts.
Are There Limits on Discharged Debts?
Typically, any accounts that were charged off by the creditor are discharged through the bankruptcy. Under the circumstances, the creditor recovered the overdue balance through an insurance claim and sold the account to a debt collection agency. Unsecured credit cards are the most common debts that are discharged.
It is unlikely that the bankruptcy court will discharge federal student loans through either chapter. However, there aren’t any limits on the total value of debt that is discharged through bankruptcy.
Is the Consumer’s Disposable Income Monitored?
It is possible for the bankruptcy court to monitor the consumer’s wages. As a term of a chapter 13 bankruptcy claim, the consumer must use their disposable income to pay off debts that aren’t involved in the bankruptcy. The court may evaluate their earnings to ensure that the consumer is complying with all stipulations of their case.
In Oklahoma, bankruptcy is an option for consumers to acquire immediate protection from creditors. By filing, the consumer won’t face repossession or foreclosure of their property based on the length of the case. Consumers who want to discuss their options can contact an attorney directly or visit www.tulsabankruptcylawyers.net/ for more information today.