The debt forgiven in an Oklahoma bankruptcy depends on what chapter of bankruptcy you file. In Oklahoma, the most popular chapters of bankruptcy are the chapter 7 and the chapter 13 bankruptcy. The chapter 7 is called the fresh start bankruptcy. Its called the fresh start because it eliminates most of your debt. On the other hand, a chapter 13 bankruptcy only eliminates certain unsecured debt under certain circumstances.
Oklahoma Chapter 7
As far as debt forgiven in bankruptcy, chapter 7 is your best option. A chapter 7 forgives most of your unsecured debt. This includes debt like credit cards, repossessions, medical bills, foreclosures, payday loans and garnishments.
Qualify For Chapter 7
Although the majority of your unsecured debt forgiven in bankruptcy, you must qualify. To qualify for a chapter 7 the following conditions must be met:
- You cant have filed a chapter 7 in the last 8 years.
- You have to must pass the financial means test.
- You must live in the State of Oklahoma for a certain amount of time.
There are some additional requirements that you must meet but those stated above are the biggest requirements. Assuming that you qualify the chapter 7 is the cheapest, easiest and the most comprehensive Oklahoma bankruptcy available to you.
Oklahoma Chapter 13 Bankruptcy
Debt forgiven in bankruptcy is different when you file a chapter 13. Unlike a chapter 7 that forgives most unsecured debt, a chapter 13 reorganizes the debt. In a chapter 13 the first debt that gets paid is your secured debt. Secured debt is a debt that is secured by an asset. An example of this kind of debt is your home mortgage, car or some other collateral given in exchange for the loan. After all of your secured debt is paid the Bankruptcy Court will pay a percentage of whats remaining to the unsecured creditors. How much they get paid depends on how much money, if any, is left in your disposable income. This payment gets paid for 60 months and after that, what remains, is forgiven in the bankruptcy
