Understanding bankruptcy begins with a healthy dose of Oklahoma chapter 7 bankruptcy information. This starts by understanding that you’re not alone in your financial woes. In fact, our Tulsa bankruptcy lawyers have filed nearly 2000 bankruptcy cases and the number is still growing. The United States Bankruptcy Court for the Eastern District of Oklahoma processed 1422 bankruptcy filings between January and November of 2019. Of these, 1269–or nearly 90 percent–were submitted pursuant to Chapter 7 of the federal Bankruptcy Code.
Although 2019 statistics are not yet available for Oklahoma’s Western District, the Northern District amassed roughly proportional numbers. Oklahomans file for Chapter 7 bankruptcy at rates far exceeding those typical of the other forms defined under federal law.
Even the second-most common type of bankruptcy in Oklahoma, that described in Chapter 13, only accounts for around 10 percent as many filings as Chapter 7. Chapter 7 bankruptcy is a distinctive form of the process that quite often ends up being the most suitable of all for particular debtors.
Wiping The Slate Clean With a Chapter 7
People considering bankruptcy typically end up choosing between Chapter 7 and Chapter 13. There’s several other forms of bankruptcy described under federal law, but two of these are aimed at municipalities and foreign entities, respectively, making them irrelevant to individual Oklahomans.
While Oklahomans do sometimes file for Chapter 11 bankruptcy, this form of the process is normally best suited to businesses and those few people with particularly complex personal financial situations. That leaves most Oklahoma residents who consider bankruptcy choosing between the Chapter 7 and Chapter 13 forms.
Chapter 7 wins out so often because it is the most definitive and simplest form of bankruptcy relief available to individuals. While a successful Chapter 7 filing “may result in the loss of {non-exempt} property,” it can also allow for the elimination of most or all of the petitioner’s debts at a single stroke.
Qualifying for Chapter 7 Bankruptcy
Naturally enough, there are fairly strict requirements that debtors must satisfy in order to qualify for this form of bankruptcy. The most significant of these concern income levels, with debtors needing to fall into at least one of two groups to be considered eligible for Chapter 7.
Oklahomans with income over the preceding six months that falls below the state’s median will normally be deemed qualified under the Chapter 7 means test. Others whose disposable income totals less than a certain amount can qualify, as well.
Chapter 7 Exceptions, Exemptions, and Other Issues
Evidence of relevant fraud and other types of malfeasance can still render a debtor ineligible for Chapter 7 bankruptcy even after passing the means test. As many know, student loans cannot normally be discharged under any form of personal bankruptcy, although there are some exceptions.
While some kinds of assets are normally open to liquidation under Chapter 7 bankruptcy, there are plenty of well-defined exceptions. Unlike some other states, Oklahoma maintains its own list of potentially exempt property and does not allow debtors to opt into the federal system.
Title 31 of Oklahoma’s statutes, though, provides for the protection from liquidation under Chapter 7 bankruptcy of many primary residences, personal vehicles, and other potentially valuable types of property. Personal property that is not deemed exempt will normally be sold off by a bankruptcy trustee so the proceeds can be distributed among creditors.
While filing for Chapter 7 bankruptcy therefore always has to be considered a significant step, it can also be a particularly productive one. That is why so many financially distressed Oklahomans opt for this form of bankruptcy every year.
Free Oklahoma Chapter 7 Bankruptcy Information
Deciding when its time to file bankruptcy requires a healthy dose of Oklahoma Chapter 7 bankruptcy information. This isn’t hard to find when you know who to call. The attorneys at South Tulsa Bankruptcy Lawyers provide help to people and businesses through out the State and want to talk with you. Get a free consultation and get the facts you need to wipe out your debt.
