Chapter 13 Bankruptcy Lawyer Assisting Clients Throughout Oklahoma City and the Surrounding Areas
People who are unable to repay their debts may choose to seek relief by filing for Chapter 13 bankruptcy. You won’t lose your assets if you file for Chapter 13 in Oklahoma, but you will have to repay some or all of your debts.
Filing for Chapter 13 bankruptcy can be the solution to your financial troubles, but it’s not right for anyone. If you are struggling to pay your debts, seek legal representation from the bankruptcy lawyers at Mitchell & Hammond. Tell our team about your financial struggles so we can help you determine if filing for Chapter 13 bankruptcy is the best way to move forward.
Who Qualifies For Chapter 13 Bankruptcy in Oklahoma?
You must meet certain requirements in order to qualify for Chapter 13 bankruptcy in Oklahoma. These requirements include:
- Your debt cannot exceed the maximum limits, which are adjusted annually.
- You must have a steady income
- You must have enough disposable income to make regular payments
- You must be filing as an individual rather than a business
Many people file for Chapter 13 bankruptcy after learning that they are not eligible for Chapter 7 bankruptcy. But in general, if you meet the conditions listed above, you qualify for Chapter 13.
How Does Chapter 13 Bankruptcy Work in Oklahoma City?
If you file for Chapter 13 bankruptcy, you will need to present the court and your creditors with a repayment plan that outlines how you will repay your debts. All of your creditor—along with the court-appointed trustee—will have an opportunity to review and object to the terms of the repayment plan. If there are objections, you may need to edit the plan accordingly.
The court will approve the plan if it meets these requirements:
- The debtor has enough income to make the payments proposed in the plan.
- The debtor is acting in good faith, which means he is not trying to fraudulently take advantage of the bankruptcy court.
- The terms of the plan comply with federal and state bankruptcy laws.
Repayment plans in Chapter 13 cases will typically last for three to five years. In most cases, the debtor will not repay all of their debt. Instead, the repayment plan usually allows the debtor to settle their debts with their creditors for less than what they owe.
Creditors and debt collectors are legally prohibited from contacting you about your debts during the course of your repayment plan. At the end of the repayment plan, the remaining balance on dischargeable debts is eliminated.
Who Should File For Chapter 13 Bankruptcy?
The attorneys at Mitchell & Hammond may recommend Chapter 13 bankruptcy if you are in debt and meet one or more of the following conditions:
- You have valuable assets that you would like to protect.
- You do not qualify for Chapter 7 bankruptcy because your income is too high.
- You’ve been through a challenging time in life that affected your finances, but you are not ready to get back on track.
Everyone’s financial situation is unique. If you are in need of financial relief, discuss your options with the bankruptcy attorneys at Mitchell & Hammond.
What Debts Will You Be Required to Pay in Chapter 13 Bankruptcy?
The way that debts are handled by the bankruptcy court will vary depending on the type of debt. There are certain debts, known as priority debts, that must be paid in full in Chapter 13 bankruptcy cases. These debts include child support, alimony, and unpaid taxes.
There are also unsecured debts, which include credit card balances, medical bills, and personal loans. These must be included in your repayment plan, however, you are not required to pay these debts in full. At the end of your repayment plan, the balances on unsecured debts will be discharged.
The third type is secured debt, which is debt that is secured by collateral such as a car, home, or other personal property. If you have secured debt, you must continue to make the agreed-upon payments to the lender or you could lose the collateral. If you are behind on payments, you will need to include these back payments in your repayment plan so you can catch up.
Call Mitchell & Hammond Now to Schedule Your Free Chapter 13 Bankruptcy Consultation
If you are experiencing financial problems, filing for Chapter 13 bankruptcy might be the solution. Discuss your situation with the Chapter 13 bankruptcy attorneys at Mitchell & Hammond to learn more about your options. To schedule a free consultation, call 405-216-0007 or submit your information via the form on this website.