When the bill collectors are pounding at your door and the phone has become a tool of torment skillfully wielded by rude callers from collection agencies, Chapter 7 bankruptcy can provide enormous relief.  Although no one wants to be in the position where they cant pay their bills it sometimes just happens. Circumstances like job loss, debilitating injury or other financial misfortunes can financially devastate an individual or family.

Creditors may seek and obtain judgments that are enforceable by wage garnishments, liens against real estate, repossessions, levies against bank accounts and attachment of assets.  Chapter 7 will stop all of these harsh collection tools and eliminate a significant portion of your financial debt. This will help you regain control of your financial life and get a fresh start. .

Types of Relief in Chapter 7:

Chapter 7 Bankruptcy permits a debtor to extinguish virtually all types of unsecured debts.  Once a discharge has been granted, the legal obligation to repay unsecured debts is eliminated. This means the creditors cant continue any collection efforts at all.  Furthermore, all garnishments and other judgement liens end.  The obligation to suspend collections efforts is called the “automatic stay,” and is designed to protect debtors while their Chapter 7 is pending.

Debts Forgiven in Chapter 7:

While secured debts subject to some form of collateral, for example a home or motor vehicle, may not be discharged in bankruptcy, most forms of unsecured debts can be eliminated.  Some of the extinguishable types of financial obligations include:

Credit card balances

• Unsecured personal loans or family loans

• Unpaid medical bills and hospital expenses

• Charge accounts in stores

• Cell phone and home utility bills

• Unsecured lines of credit

• Many other types of unsecured debts

Chapter 7 cannot discharge a few forms of unsecured debt.  The most prevalent forms of unsecured obligations that Chapter 7 bankruptcy cannot eliminate include:

Certain family court obligations like child support and alimony

• Certain unpaid tax obligations with limited exceptions

• Student loans in most cases

• Personal injury damages associated with drunk driving accidents

• Most fines and penalties assessed by governmental entities

Even if you think that your form of debt may not be susceptible to a Chapter 7 discharge, it is worth seeking legal advice because there may be other available forms of bankruptcy relief.

Qualifying for Chapter 7:

A debtor may be eligible for Chapter 7 bankruptcy relief if he or she qualifies under the “means test.”  It is important to note that this test does not require a debtor to have income that is close to the poverty line like some government benefit programs.  If your household income is below the median income for a family of comparable size in your state, then you qualify for Chapter 7.  If your income is higher than this threshold, then a more careful analysis of your income, assets and certain expenses must occur.

Our Oklahoma Chapter 7 Attorneys can usually determine eligibility during an initial consultation.  The South Tulsa Bankruptcy Law Office’s Lawyers offer a free consultation so that we can assess your situation.  We invite you to contact us at (918) 739-8984 or fill out this today!