Reopening Your Oklahoma Bankruptcy Case

September 9th, 2016

Reopening Your Oklahoma Bankruptcy Case requires what the Court calls good cause. One of the concerns we hear from clients is “what if something happens after the case is over?  Can my case be reopened?”  As a general rule, no, once discharged and closed, a bankruptcy is final.  For instance, a court will not reopen a case to add a creditor to the case after the fact. It also wont open to add a reaffirmation agreement that was not filedReopening your Oklahoma Bankruptcy on time.  However, under special circumstances, the court will decide to reopen a case. This involves very narrow circumstances requiring special kinds of relief.

Requires a Motion to Reopen:

To reopen an Oklahoma bankruptcy, the debtor’s attorney, must file a motion based on the rules of bankruptcy procedure. Those rules are found in Fed. R. Bankr. P. 5010. This rule states the debtor or other interested party may reopen the case only if its for a purpose contained in 11 U.S.C. § 350(b).  This rule states that a case may be reopened for essentially two reasons.  First, to administer assets, or second, to provide relief to the debtor.  As debtors have no say on the administration of assets, they will only be concerned with relief.

Some Reasons the Court Will Reopen Your Case:

The three most frequent forms of relief for which the court will allow Reopening your Oklahoma Bankruptcy case are redaction, violation of the discharge, or to avoid a lien.  The court will reopen a case for redaction if there is information in the case that should have been redacted. An example of this is a social security number.

The court will reopen a case if the debtor believes that a creditor has violated the bankruptcy discharge. This might be due to a creditor attempting to collect a debt that was discharged in the now closed bankruptcy.  Finally, the court will reopen a case to allow a debtor to file a motion to avoid a lien.  Often, debtors don’t even know that a creditor placed a judgment lien against their property (such as their home), until they try to sell it.  Because getting rid of the lien requires a process other than just the original bankruptcy, the court will allow debtors to reopen months or even years later.

Tulsa Lawyers Helping Reopen Your Oklahoma Bankruptcy:

In conclusion, a reopening your Oklahoma bankruptcy cannot be reopened for actions that should have been taken care of in the original case.  A case can be reopened, however, for special kinds of relief, including redaction, violation of the discharge, or to avoid a lien.  If you filed a bankruptcy in the past and are receiving harassment or collection attempts from a creditor in that bankruptcy, or you find your home has a lien against it from a creditor in your bankruptcy, contact a bankruptcy attorney who can get your case reopened and get you the relief you need.

Insurance Settlement Money in Bankruptcy

July 28th, 2016
Insurance Settlement Money in Bankruptcy is yours to keep. Insurance is often a tricky subject for people considering bankruptcy?  They want to know what will happen if they are in an accident, or receive life insurance money.  The answer is first dependent on when the accident occurs, andInsurance Settlement Money in Bankruptcy then where the debtor lives.

Insurance From a Personal Injury:

The first question to ask is “when did the injury or death occur?”  If it’s insurance due to a personal injury accident and the injury occurred after filing the bankruptcy”, then you’re entitled to keep the proceeds free and clear.  If the personal injury occurred before the bankruptcy certain rules apply. First you must show the potential money in your bankruptcy schedules. Next you have to claim the Oklahoma exemption for personal injury. Lastly the funds are 100% yours up to $50000.00.

Insurance From a Will or Trust:

If its from a life insurance claim  and the death occurred six months or more after filing,” then you’re entitled to keep the entirety of the proceeds. If the death occurred within six months of filing or before filing, or if the accident occurred before filing, then the funds are considered part of the bankruptcy estate.  At that point, where the debtor lives determines what happens.  Where the debtor lives determines what set of exemptions apply to the bankruptcy estate.  If its filed in Oklahoma than we use Oklahoma exemptions. In Oklahoma you may lose the money to the bankruptcy trustee. If so the Trustee will keep the money and pay it towards your debt.

Oklahoma Bankruptcy Exemptions:

Debtors living in Oklahoma are very fortunate.  Oklahoma opted to write its own bankruptcy exemptions, and they contain a generous provision for insurance proceeds.  If an accident or death occurred during a period where the proceeds from insurance would become property of the estate, Oklahoma debtors may exempt up to $50,000 of the insurance proceeds from the bankruptcy estate.

It is critical, however, that this money be handled properly.  In order to be exempted, the funds must be traceable back to the insurance claim.  That means they cannot be “commingled” with other types of assets or money.  The best way to separate out the insurance money is to put it in its own separate bank account that contains nothing but those funds.  By making a separate account, the debtor can ensure that the $50,000 they are entitled to keep goes untouched by the bankruptcy court.

Contact a Tulsa Lawyer About Insurance Settlement Money in Bankruptcy:

If you’re considering a fresh start and wondering about insurance settlement money in bankruptcy we can help. Just like many other assets insurance money in a bankruptcy is exempt. This means its yours to keep so long as you qualify. Call today for a free consultation with a bankruptcy attorney.

Filing Bankruptcy in Oklahoma

June 28th, 2016

Do’s and Dont’s Before Filing Bankruptcy in Oklahoma:

Filing bankruptcy is an emotional event for many people. The truth of the matter is that while the pressure associated with filing is understandable following some common do’s and dont’s before filing bankruptcy in Oklahoma.

Dont’s Before Filing Bankruptcy in Oklahoma:

  1. If you have a retirement plan don’t withdraw large sums of money from it just before filing. The two main reasons are that the money you withdraw, once withdrawn is no longer exempt. Leave the money alone. Regardless of how much money is in your retirement, it’s an exempt asset and you won’t lose it your Filing Bankruptcy In Oklahoma | Tulsa Bankruptcy Lawyersbankruptcy. The next reason is that withdraws from retirement plans will increase your income. Because Chapter 7 is means-tested to determine if you qualify for money that increases your income, it may impact your ability to qualify.
  2. Absolutely do not transfer any car or boat titles out of your name. Oklahoma allows for certain bankruptcy exemptions and your car is one. So don’t transfer any titles.
  3. Don’t borrow money if you know that you are going to file bankruptcy in the near future.  Doing so puts your bankruptcy in danger.

Things To Do Before Filing Bankruptcy in Oklahoma:

  1. You should gather six months of your payroll just before we file your case. This shows that your income is below the allowable level for you to qualify for a Chapter 7. If a Chapter 7 is what you are filing.
  2. You should gather up six months of both checking and savings account history. This is done to show the bankruptcy court that you haven’t been moving large sums of cash out of your accounts to in violation of bankruptcy law.
  3. You should gather up two years of tax returns. This is required so that we can provide the court with income history. It also shows which bankruptcy–Chapter 7 or Chapter 13–that you qualify for.

Contact a Bankruptcy Attorney in Tulsa Oklahoma:

If you are having trouble paying your bills bankruptcy may be the perfect solution for you.  Filing bankruptcy in Oklahoma doesn’t have to be so difficult and with a little help and guidance you will get through it. Call today and get a free consultation with one of our Oklahoma bankruptcy attorneys.

Oklahoma Bankruptcy Exemptions

October 6th, 2015

Oklahoma Bankruptcy Exemptions help you safeguard your property in Bankruptcy. Protecting certain assets i.e., keeping them from creditors is a feature of filing a Chapter 7 bankruptcy in Oklahoma. You should know which assets Oklahoma Bankruptcy Exemptions you can keep and under what circumstances you can keep them. The following is a review and a general outline that lists “exempt assets”… assets that you can keep from your creditors.

Bankruptcy Exemptions divide into classes and amounts based on the concept of “equity”. For example, if you have a car that you could sell for $2000 and you have a $1500 loan on the car, your equity is $500. Equity equals the amount left over after selling the asset and repaying the loan. Bankruptcy quotes most exempt assets in terms of equity.

Your House Is Exempt:

Oklahoma Bankruptcy Exemptions For Your Home – The first and usually largest exemption in an Oklahoma bankruptcy is the Homestead exemption. No matter where you live in Oklahoma, if your home is your primary residence, the exemption for the equity you have in your home is unlimited. In addition, you can exempt the value of your acreage up to 160 acres. If however, you live in a city, town or village your acreage exemption is limited to $5000.

Other Exempt Assets:

Bankruptcy Exemptions For Your Motor Vehicle- You can exempt up to $7,500 in equity in a motor vehicle.

Oklahoma Bankruptcy Income Exemptions – You can exempt 75% of wages based on average wages over the past 90 days. For example, if garnishing up to 25% would present a provable economic hardship for you, exemption may be possible.

Exemption For Your Retirement Account – You can exempt the full value of your qualified (pre-tax) retirement plan.

Exemption for Personal Property – Personal property include clothing $4000, furniture and electronics, and one year’s supply of food.

Jointly Owned Assets double the Exemption – For married couples, the exemption amount for jointly owned assets can double.

As long as credit card companies charge double-digit interest rates, no one should feel shame in filing for bankruptcy. Oklahoma law makers know this, so Oklahoma has some of the most advantageous terms in the nation for individuals who simply cannot withstand the burdens of crushing credit card debt. If you are contemplating wiping the slate clean, or are merely concerned that you cannot pay your bills on time every month, please give us a call for a free consultation. Filing for Chapter 7 bankruptcy often makes good economic sense and we can advise and assist you in each step from the initial filing to taking positive measures to restoring or maybe even eventually improving your credit rating. Please call us today.

Free Consultation: Contact us about Oklahoma Bankruptcy Exemptions;

If you are considering bankruptcy we can help. The bankruptcy attorneys at South Tulsa Bankruptcy can take you through the process of understanding exempt assets. Call today for your free consultation.

Student Loans and Oklahoma Bankruptcy

August 21st, 2015

Student loans and Oklahoma bankruptcy are once again in the news. Student loans are a leading source of personal debt in the United States.  For many people student debt is a large portion, and in some cases, the Student Loans and Oklahoma Bankruptcymajority of their debt.  Many potential bankruptcy debtors are unsure whether or not their student loans can be discharged.  Recent statements by the President and by the Department of Education concerning student loans have further confused this situation.  It’s important for potential debtors to have a clear understanding of what the laws are concerning student loans and Oklahoma bankruptcy. By understanding the rules your expectations regarding bankruptcy and student loans will be realistic.

Basic Guidelines For Student Loans:

The basic law surrounding student loans and Oklahoma bankruptcy remains the same since the bankruptcy reforms of 2005.  Generally, 11 USC §523(a)(8) states that any education loan guaranteed by the federal government cannot be discharged unless not doing so would create extreme and undue hardship for the debtor.  After 2005, that law also applies to any student loan made by a private entity.  Thus, any and all student loans, federal or private, are subject to a “undue hardship” test in bankruptcy.

Undue Hardship Explained:

The statute does not define “undue hardship,” and the Supreme Court has yet to issue a ruling on the issue.  Thus, Federal Circuit courts determine the standards measuring undue hardship.  The most commonly used test comes from a New York case from 1987, Brunner v. New York State Higher Education Services Corp., (831 F.2d 395, 2d Cir. 1987).  In Brunner, the Second Circuit determined that an undue hardship consists of three factors:

  1. Inability to maintain a minimal standard of living if forced to repay the loan.
  2. Additional circumstances exist indicating that the state of affairs is likely to persist for a significant portion of the repayment period; and
  3. Debtor has made good faith efforts to repay.

This test is, in and of itself, vague, particularly “additional circumstances” and “good faith efforts.”  Since the Brunner ruling in 1987, the courts have generally determined that “additional circumstances” is effectively equal to disability.  Inability of a debtor to work due to long-term and/or permanent injury or disability meets the “additional circumstances” test.  In such cases, “good faith efforts” often interprete widely to mean any attempt to repay the loans. Thus, the longer and more consistent loan repayments are prior to bankruptcy, the better.

Recent Court Suggestions:

Some courts have suggested that other standards, such as a confluence of catastrophic events outside the debtor’s control (such as an unexpected divorce combined with illness of a child and loss of income) could constitute an “undue hardship”, particularly with past evidence of an intent to repay the loans, but until the Supreme Court rules on the issue, the Brunner test is still the most widely used.

A debtor must file an adversrial proceeding with the bankruptcy court to have student loans considered.  Presumably, student loans are non-dischargeable.  The Department of Education has, in the past, frequently contested such proceedings in an attempt to prevent discharge.  A Presidential Memorandum from President Obama in March of 2015 ordered the Department of Education to clarify the circumstances under which they would continue to challenge such filings.  On July 7, 2015, the Department released a memo stating that they would limit their challenges to cases where they disagreed that an undue hardship existed, and further, not pursue cases when the costs to fight the adversarial proceeding in bankruptcy court would exceed one third of the total amount of the loan due.

Practical Implications Of Undue Hardship Test:

While that sounds promising, it doesn’t actually represent any real change in the status of student loans and Oklahoma bankruptcy.  First, private loans aren’t covered by these guidelines at all, because the Department of Education has no control over them.  Second, while these guidelines are being publicly released due to Presidential Memorandum, they are essentially how things have operated for years.  None of these guidelines change federal law or particularly modify the Brunner test.

Therefore, for a non-disabled debtor, student loans, whether federal or private, are effectively exempt from discharge.  Disabled debtors have more options.  The Department of Education is issuing forgiveness for federal student loans if they determine that an undue hardship exists.  This loan forgiveness is technically outside the bankruptcy, but is often requested in conjunction with a bankruptcy filing.

If the Department of Education determines that an undue hardship does not exist, a disabled debtor could still file an adversarial proceeding to attempt to discharge the debts through the court, though, as suggested above the Department of Education will still contest those proceedings if it deems it to be in the financial interest of the government.  Private loans, even for disabled debtors, are still likely to be challenged in all cases;  more over, few, if any, private lenders provide a procedure or policy forgiving the debt for disabled debtors.

Current State of The Law:

In conclusion, despite Presidential memos and government guidelines, the best rule of thumb is that student loans are not dischargeable.  If you have a disability and believe that you may qualify to have your loans forgiven or discharged, speak to your bankruptcy attorney regarding this matter.

Student loans are a leading source of personal debt in the United States.  For many people who are exploring bankruptcy, student debt is a large portion, and in possibly, the majority of their debt.  Many potential bankruptcy debtors are unsure whether or not their student loans, federal or private, can be discharged.  Recent statements by the President and by the Department of Education concerning bankruptcy and student loans have further confused this situation.  It is important for potential debtors to have a clear understanding of what the laws and rules are concerning student loans before filing, so as to have clear expectations for what their financial situation will be post bankruptcy.

The basic law surrounding student loans in bankruptcy remains the same since the bankruptcy reforms of 2005.  Specifically, 11 USC §523(a)(8) states that any education loan made, insured, or guaranteed by the federal government cannot be discharged, “unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents.”  After 2005, that law also applies to any student loan made by a private entity.  Thus, any and all student loans, federal or private, are subject to a “undue hardship” test when a debtor seeks to discharge them in bankruptcy.

Definition of Undue Hardship:

Student Loans and Oklahoma Bankruptcy are vague regarding undue hardship. The statue does not define “undue hardship,” and the Supreme Court has yet to issue a ruling on the issue.  Thus, Federal Circuit courts determine the standards measuring undue hardship.  The most commonly used test comes from a New York case from 1987, Brunner v. New York State Higher Education Services Corp., (831 F.2d 395, 2d Cir. 1987).  In Brunner, the Second Circuit determined that an undue hardship consists of three factors:

  1. Inability to maintain a minimal standard of living if forced to repay the loan.
  2. Additional circumstances exist indicating that the state of affairs is likely to persist for a significant portion of the repayment period; and
  3. Debtor has made good faith efforts to repay.

This test is, in and of itself, vague, particularly “additional circumstances” and “good faith efforts.”  Since the Brunner ruling in 1987, the courts have generally determined that “additional circumstances” is effectively equal to disability.  Inability of a debtor to work due to long-term and/or permanent injury or disability meets the “additional circumstances” test.  In such cases, “good faith efforts” often interprete widely as any attempt to repay the loans.  Thus, the longer and more consistent loan repayments are prior to bankruptcy, the better.

Some courts have suggested that other standards, such as a confluence of catastrophic events outside the debtor’s control (such as an unexpected divorce combined with illness of a child and loss of income) constitutes an “undue hardship”, particularly with past evidence of an intent to repay the loans,  However, until the Supreme Court rules on the issue, the Brunner test remains the most widely used.

Adversarial Proceedings and Student Loans:

A debtor must file an adversarial proceeding with the bankruptcy court to have student loans considered.  Presumably, student loans are non-dischargeable.  The Department of Education has, in the past, frequently contested such proceedings in an attempt to prevent discharge.  A Presidential Memorandum from President Obama in March of 2015 ordered the Department of Education to clarify the circumstances under which they would continue to challenge such filings.  On July 7, 2015, the Department released a memo stating that they would limit their challenges to cases where they disagreed that an undue hardship existed, and further, not pursue cases when the costs to fight the adversarial proceeding in bankruptcy court would exceed one third of the total amount of the loan due.

While that sounds promising, it doesn’t actually represent any real change in the status of student loans.  First, these guidelines do not cover private loans since the Dept. of Education has not control over them.  Second, while these guidelines are public for the first time due to the Presidential Memorandum, they show essentially how the Department of Education operated for years.  None of these guidelines change federal law or particularly modify the Brunner test.

Therefore, for a non-disabled debtor, student loans, whether federal or private, are effectively exempt from discharge.  Disabled debtors have more options.  The Department of Education, in accordance with the guidelines it released on July 7, are issuing forgiveness for federal student loans if they determine that an undue hardship exists.  This loan forgiveness is technically outside the bankruptcy, but is often requested in conjunction with a bankruptcy filing.

If the Department of Education determines an undue hardship does not exist, a disabled debtor could still file an adversarial proceeding attempting to discharge the debts through the court.  Though, the Department of Education will still contest those proceedings if it deems it is in the government’s financial interest.  Private loans, even for disabled debtors, are usually challenged in all cases; and few, if any, private lenders use a procedure or policy forgiving the debt for disabled debtors.

In conclusion, despite Presidential memos and government guidelines, the best rule of thumb is that student loans are not dischargeable.  If you have a disability you may qualify to have your loans forgiven or discharged, speak to your bankruptcy attorney.

Free Consultation Regarding Student Loans and Oklahoma Bankruptcy:

If you have questions regarding student loans and Oklahoma bankruptcy call us today. At South Tulsa Bankruptcy Law Office we understand how hard a financial crisis is. We can help you get a chapter 7 fresh start or chapter 13 reorganization of your debt. Get a Free Consultation 918-739-8984

Oklahoma Bankruptcy Options and Your Assets

August 19th, 2015

When you file Oklahoma bankruptcy, the court and the creditors will heavily scrutinize your assets. In exchange for assistance with your debts, either throughOklahoma Bankruptcy - Tulsa bankruptcy lawyers - discharge or reorganization, you must be willing to negotiate with creditors. If you have valuable assets, the bankruptcy system does allow you various means of legally protecting them.

First things first: do not commit bankruptcy fraud. If you make big purchases on credit cards, accumulate cash advances or request large personal loans right before filing for bankruptcy, the court will be suspicious of your spending activity. In addition, if you try to protect your assets by transferring all of them to friends or family members on the eve of your Oklahoma chapter 7 bankruptcy, creditors may attempt to seize these assets.

Bankruptcy Estate:

When you file for bankruptcy, all of your assets and debts become your bankruptcy estate. The value of your bankruptcy estate must be distributed by the trustee to your creditors. However, bankruptcy does allow exemptions. Depending on the value of your estate, you may be able to avoid relinquishing any property to creditors.

Bankruptcies are governed by both state and federal law. The Bankruptcy Code is a federal law, and federal bankruptcy judges oversee the process. However, Oklahoma is permitted to pass its own bankruptcy regulations. In Oklahoma, you are required to use Oklahoma bankruptcy exemptions and federal non-bankruptcy exemptions when valuing your bankruptcy estate. Oklahoma and federal bankruptcy exemptions include:

  • The full value of your primary residence unless you also use your primary residence for your business, which would then reduce the exemption to $5,000
  • Up to 1 acre of land if you live in a town but up to 160 acres if you live on a farm or ranch
  • Cemetery plots
  • Engagement rings
  • Books and photos
  • Clothing
  • Home defense guns
  • Livestock for family, not business, use
  • Medical equipment
  • College savings plans
  • Furniture, decorations, computers, and other personal property
  • Personal injury awards amounting up to $50,000
  • Individual Development Accounts
  • Food
  • Funeral benefits
  • War bond payroll savings
  • Up to $7,500 in equity in a vehicle
  • Various retirement accounts such as 401(k)s and IRAs worth up to $1,245,745
  • Crime compensation
  • Social Security and other disability payments
  • Unemployment pay
  • Worker’s compensation
  • Earned income tax credit
  • Farming tools
  • Enough seeds to last one harvest
  • Business equipment like computers, fax machines, filing cabinets, and more
  • 75% of your income earned in the 3 months preceding filing
  • Spousal and child support
  • Annuities
  • Group life insurance proceeds
  • Property owned by your LLP or GP business
  • And more

This is only a partial list. As you can see, there is an astonishing number of bankruptcy exemptions that may apply to your estate. While your bankruptcy estate may seem fairly valuable after you compare your income with your liabilities, the exemptions can greatly reduce your income. In addition, these exempted properties cannot be seized in a Chapter 7 bankruptcy. Thus if you are seeking a total discharge of unsecured debts, you will be able to protect your home from seizure. You may also be able to protect your car depending on its worth and the overall value of your estate.

The best way to prepare for bankruptcy is to plan ahead. By securing your assets before the threat of bankruptcy enters your mind, you can protect them down the road. Placing some of your valuable assets like inheritances into a trust fund will transfer ownership out of your hands. Money in a trust fund will not be calculated as part of your estate. In addition, placing money in a trust fund will preserve your funds for the probate process as well.

Free Consultation And Your Assets in Oklahoma Bankruptcy;

If you are considering an Oklahoma bankruptcy keeping your assets is very important. Out attorneys will go through your assets and debts and apply the bankruptcy exemptions so that you don’t lose your home, car, retirement and most other personal property in bankruptcy. Call today for a free consultation.

Tulsa Lawyer Discusses Debt Solutions

August 10th, 2015

If you’re struggling to pay your bills, you’ve likely grown accustomed to constant harassing calls from creditors. You want to pay them off and stop the Debt Solutionsendless ringing of your phone, but simply don’t have the money. Your credit score slips lower and lower as the late payments pile up. Every month, you find yourself making financial sacrifices or juggling between whether to pay one bill or another. If you’ve grown tired of fighting your debt we can help. You don’t need to resign yourself to another day of avoiding the phone and mailbox. By choosing the right debt solutions, or bankruptcy you can legally and responsibly address your debt. This allows you address your concerns and work toward a brighter future.

First, there’s always the option of paying the past due balances on your bills. This make you current again, then making timely monthly payments thereafter. However, if you were able to remain current on all of your bills, you wouldn’t have fallen behind in the first place. Thus, you will need to find a debt solution that is more aligned with your budget and goals.

Debt Settlement:

A debt settlement plan is part of a group of debt solutions that allows you to offer a lump sum payment to the creditor. This is done in exchange for a cancellation of the debt. You can often negotiate a payment that is 30-40% of the total amount you owe. If you are several months behind and believe that the creditor is likely to sell your debt soon, you may be able to settle for a very low amount. Creditors sell debt for pennies on the dollar, then write off the debt. The creditor may be incentivized to take your low offer if it is higher than what they would get if they sold your debt to a new creditor. The debt will show as settled on your credit report, and the account will be closed. This method requires you to have cash up-front, which many individuals do not have.

Debt Snowball:

A debt-snowball plan allows you to slowly but surely pay off debt over time. You begin by making only the minimum payment on each debt. Any leftover money you have each month is applied to the lowest balance. Once that balance is paid off in full, you roll the leftover money over to the next lowest balance. You continue this until your highest balance is paid. Your leftover money will increase as more debts are paid off. This will allow you to allocate more money to paying off the balances each month. Again, this method requires you to have available money on hand. If you cannot pay your minimum payments now, the debt-snowball plan will not be feasible.

Debt Management:

A debt management and debt solutions plan is an option for individuals who cannot make their minimum payments. A debt solutions or debt management plan is usually arranged by a credit counselor for a fee. First, the creditor interviews you, obtains information on your income and expenses, and computes the maximum amount you can spend monthly on your debt. On your behalf, the credit counselor then negotiates with the creditors to reduce both your interest rates and monthly payments. You will pay a lump sum to the credit counselor each month, who will then distribute individual payments to the creditors in amounts agreed upon with the creditors and according to a schedule.

All accounts included in the plan will be closed. In addition, many creditors have stringent requirements for participating in a plan. For instance, some may not allow you to have any open lines of credit while others will require you to drastically cut down on living expenses to prove you are making progress toward being financially stable and savvy. The debt management plan will likely pay off all of your debts in 3 to 4 years, though you can stretch it out for longer to reduce the monthly payments. The debt solutions or debt management plan will not improve your credit score. In fact, the creditors might not even update your credit report to reflect that you are making monthly payments through the plan.

Free Consultation About Debt Solutions in Oklahoma:

All of these options come with their own setbacks. The most significant con is the requirement that you have available funds to pay the bills in some form. If paying even a small amount is an extreme hardship for you, bankruptcy in Oklahoma will likely be your best option. Bankruptcy can assist you with either discharging your debt through a chapter seven or restructuring them into manageable payments in order to wipe your slate clean. An experienced bankruptcy attorney can counsel you on which debt solution works best for you and how to file for bankruptcy. Call us today for a free Oklahoma bankruptcy consultation.

Tulsa Chapter 7 Bankruptcy

July 21st, 2015

Tulsa Chapter 7 bankruptcy is one of the most attractive forms of bankruptcy because it allows for the complete discharge of most unsecured debts. Many liken a Tulsa Chapter 7 bankruptcy to starting fresh with a clean slate. However, in order to be eligible for a Chapter 7 bankruptcy, you must have an Tulsa Chapter 7 Bankruptcy - Tulsa bankruptcy lawyers -income below the federal mandated threshold. In order to calculate eligibility, the bankruptcy judge will use the means test. If you fail the means test, you will not be permitted to proceed with your Chapter 7 petition. Instead, you should explore other options, such as a Chapter 13 bankruptcy, which is targeted more towards debtors who have high incomes but struggle to pay their bills.

You Must Pass The Means Test:

The means test uses a special formula that considers a number of factors, including income, assets, expenses, and debts. It is not a simple income level threshold. As such, by using the skills and expertise of a bankruptcy attorney, you may be able to structure your assets to not only become eligible for Chapter 7 but also protect the property that is most valuable to you from your creditors.

The means test does not weed out people who are poor. Rather, the means test weeds out people who are able to pay their debts. If you are wealthy but have astronomical expenses, you may be unable to pay your debts. If your monthly income is below your state median income level for the state of Oklahoma and your specific household size, you have established prima facie eligibility. You can file for Chapter 7 without any further calculations in the means test.

Calculating Means Test Income:

If your monthly income is over the median, you may still qualify. The means test will first calculate your monthly income. This is known as your current monthly income (CMI). To calculate your CMI, the means test will take the average of your monthly income for the past 6 months. Your monthly income includes all of the following: 

  • Wages, tips, overtime pay, commissions, bonuses
  • Investment income such as interest or dividends
  • Rental property income
  • Retirement income
  • Pension income
  • Net income from your personal business
  • Child support
  • Alimony
  • Worker’s compensation
  • Unemployment
  • Social Security payments
  • Disability payments
  • Annuities

The means test will then calculate your monthly expenses. The means test will subtract your average monthly expenses from your average monthly income. The result is your disposable income. Disposable income can pay your debts. If your disposable income is too high, you will likely be able to pay some or all of your debts. Thus you won’t be eligible for Chapter 7.

An online means calculator can help you do a quick means test. However, it is best to consult with a bankruptcy attorney to ensure you are including all eligible income and expenses.

Tulsa Chapter 7 Bankruptcy Consultation:

If you are eligible for Tulsa Chapter 7 bankruptcy according to the means test, you may proceed with your filing. You must undergo credit counseling prior to filing.  If your credit counselor drafts a debt management plan, you must include that as part of your filing. However, just because you are eligible does not mean that Chapter 7 bankruptcy is the right course of action for you. The Oklahoma bankruptcy court in a Chapter 7 proceeding may demand that you liquidate your assets to satisfy creditors before receiving the benefit of a discharge. In addition, Chapter 7 bankruptcy will remain on your credit report for 8 years. Only a bankruptcy attorney can properly counsel you on your options and advise you on your best course of action.

Judgement Liens Oklahoma Bankruptcy

July 13th, 2015

Judgement Liens Oklahoma BankruptcyFor those considering bankruptcy, a lawsuit from a creditor is the catalyst.  For creditors who’ve exhausted all other collection options, filing and Judgement Liens Oklahoma Bankruptcy winning a lawsuit gives them powerful tools against the debtor. This tool is called a “judgment creditor”.  Once the creditor gets their Judgement Lien the collection efforts will begin in earnest. The two most widely used, and most concerning for debtors, are garnishment and judgment liens. Judgement Liens Oklahoma Bankruptcy usually proceed filing your case and usually cause the bankruptcy. Many times judgement liens are what causes the bankruptcy. Fortunately bankruptcy will forgive most if not all judgement liens.

Types of Garnishments:

Garnishments come in two forms:  bank garnishments and wage garnishments.  A bank garnishment occurs when a judgment creditor takes funds directly from the debtor’s bank accounts.  If creditors believe the debtor has funds with a bank, be it in checking, savings, or some other type of account, the judgment creditor will send a request to the bank. This request is sent to confirm whether or not those funds exist.  The bank legally must comply with this request and answer truthfully.  If funds exist, the creditor takes from those funds until they are exhausted, or the judgment is satisfied.  The only silver lining for a debtor is that these requests are singular events.  The judgment creditor must make a new request every time they wish to seek funds from a bank account in this manner.

That is not the case with wage garnishments.  If the creditor uses a similar type of request as with a bank garnishment.  Conversely, this one is directed at the debtor’s employer.  This “request” is actually an order from the court directed at the employer.  It withholds up to 25% of the debtor’s net pay until the creditors receive their portion.  The employer must comply with the order and must set aside the funds specified by the court.  Furthermore, this is ongoing.  The creditor does not have to file a new garnishment with every paycheck.  Though they are required to file one with a new employer if the debtor switched jobs.

Purpose of Judgement Liens:

The other tool that judgment creditors get access to is a judgment lien.  A judgment lien is a fall back measure ensuring eventual payment to the creditor, even if they cannot effect a wage or bank garnishment.  If the judgment creditor determines that the debtor owns real estate, be it a home, business, or empty plot of land, they can file their judgment with the appropriate county land records office.  By filing their judgment, the creditor “clouds the title”.  Essentially, the property cannot be sold to another buyer without first satisfying the judgment. For example, a real estate transaction can’t occur without clear title.   That way, although the creditor cannot collect through garnishments, they still collect when the property is eventually sold.

Bankruptcy Eliminates Judgement Liens:

These collection methods can sound drastic and unfair to debtors.  Fortunately, there is a solution for most of them in bankruptcy.  As for garnishments, filing bankruptcy cuts off all future garnishment attempts.  That cut off is permanent for any debt that is dischargeable.  Note however, that for a non-dischargeable debt, the cut off only lasts during the pendency of the bankruptcy.  Pendency is usually about 90 days.  This applies to both wage and bank garnishments.  Filing, however, does not force the creditor to return money garnished before the bankruptcy was filed.  Those legally collected fund are rightfully the property of the creditor.  Thus, it is important to file as quickly as possible when faced with a potential garnishment situation happens (ideally, before the lawsuit is even filed).

Property Liens After Bankruptcy:

Bankruptcy deals with judgment liens, assuming the debt is forgivable.  However, it requires an additional process.  While the bankruptcy may discharge the debt, it does not, on its own, remove the lien.  A “motion to avoid lien” must be filed. The most critical step in filing a motion to avoid lien is determining that the lien exists on the property.  Therefore, it is advisable that potential bankruptcy candidates who own a home contact the county land records office and view the title.  By filing a “motion to avoid lien” initially, debtors save time and money.  They avoid reopening the bankruptcy years later in order to remove the lien before selling the property.

Lawsuits can be a scary prospect for potential Oklahoma bankruptcy candidates, but they don’t have to be.  With smart, fast action and good planning, the consequences of a creditor’s lawsuit are avoidable.

Judgement Liens Oklahoma Bankruptcy; Free Consultation:

If you are considering filing a bankruptcy and need a free consultation regarding judgement liens call us today. Call 918-739-8984

Bankruptcy Attorneys in Oklahoma Discuss The Meeting of The Creditors

June 29th, 2015

The Meeting of the creditors isn’t something you should fear. Right after a person files for bankruptcy, the court does several things.  First it issues a case number, which identifies your bankruptcy. Next it notifies your creditors by mail that you have filed a bankruptcy. Finally, it assigns a bankruptcy trustee to your case who schedules a hearing called the “First Meeting of The Creditors - Tulsa bankruptcy lawyersMeeting of the Creditors.”   This meeting is often a source of worry for debtors unfamiliar with the bankruptcy process.  Fortunately, for the vast majority of consumer debtors filing Chapter 7 bankruptcy, the 341 hearing is a simple and relatively painless process that doesn’t need to be a source of concern.

Why Have a Meeting of The Creditors:

First, as its full name implies, its a chance for all the creditors to have a meeting with the debtor.  For many, that sounds like they’ll be questioned by all the people to whom you owe money. In reality, this is practically never the case.  Occasionally, a creditor unfamiliar with the process appears, or a secured creditor (like one holding a mortgage or auto loan) appears to ask a specific question, but even those appearances are fleetingly rare.

The second purpose is to convene the appointed trustee with the debtor and the debtor’s attorney.  The trustee is an attorney appointed by the court to handle the day to day dealings of bankruptcies that don’t require the attention of either the Bankruptcy Judge, or the Federal Bankruptcy Trustee.   In a Chapter 7, the trustee’s job is to determine if there is any non-exempt property that must be turned over to the bankruptcy court for sale and distribution to the creditors.  He or she makes this determination after reviewing the debtor’s petition and after meeting with the debtor.

Don’t Fear The Meeting of Creditors:

The meeting is fairly simple.  The debtor and their attorney arrive at the meeting. This meeting is usually in a conference room at the bankruptcy court.  The debtor waits for the trustee to call them. They enter into a private room, or just to a table at one end of the conference room.  In some jurisdictions, the trustee may even call more than one debtor at a time and conduct the meetings in groups.  The trustee will place the debtor under oath, and ask to see the debtor’s driver’s license and social security card.  It’s very important the debtor bring those two documents to the meeting. If you fail to bring them the trustee may reschedule the meeting to another date.  After confirming the debtor’s identity, and that the social security number matches the one on the petition, the trustee will ask the debtor some questions.

Additional Concerns Aren’t a Problem:

In some cases, the trustee may have questions concerning taxes, real estate, or personal property.  The trustee may address these questions to the debtor’s attorney or directly to the debtor.  Occasionally, the trustee may ask the attorney to provide further information after the hearing, such as a tax return filed late, or ask for clarification about property or creditors.  Once the trustee has asked the necessary questions, he will dismiss the debtor, ending the meeting.

The entire process usually takes just a few minutes.  Sometimes the waiting period is shorter than the actual meeting.  After the meeting, the debtor’s attorney may remind him or her to bring any additional documents necessary.  Also, you receive a reminder to finish the second debtor education class.  The 341 hearing meeting of the creditors may sound intimidating, but in reality, its quick and simple.