Qualifying For Chapter 7

Between 2011 and 2015, nearly 600,000 nonbusiness Chapter 7 cases were completed nationally. This type of bankruptcy is common because it’s relatively fast and simple compared to other filings. It is an effective way to have most unsecured debts discharged. However, you must qualify based on your income. In 2005, it became more difficult for consumers to qualify for liquidation. Generally, you must earn less than similar households in Oklahoma or have a monthly disposable income less than $100.

Discharging Debts through Bankruptcy

Most unsecured debts can be discharged with Chapter 7 bankruptcy. Debt that is secured by collateral, such as your home or your car, won’t be discharged. In most cases, liens can be enforced after bankruptcy. Back taxes, student loans, alimony and judgments related to criminal lawsuits are also excluded. The following unsecured debts can be discharged.

  • Credit card balances
  • Collections
  • Medical bills
  • Personal loans
  • Auto loans
  • Utility bills
  • Unpaid rent

       Exempt and Nonexempt Property

A common misconception with Chapter 7 bankruptcy is that you will lose everything you own. Luckily, this is not the case. Oklahoma law is very specific about what you can and cannot keep. There are limits for most types of personal property and assets.

Thanks to Oklahoma’s homestead exemption, an unlimited amount of equity in your primary residence is protected. You can keep books, pictures, furniture, personal computers and up to $4,000 in clothing. You will retain up to $7,500 equity in a vehicle. Social Security and government benefits are also protected.

If you have any questions about Chapter 7 or nonbankruptcy alternatives, call Gary Hammond at 405-216-0007 to arrange a free consultation. I have practiced law in Oklahoma City for more than 25 years. I also served as a state-appointed Chapter 7 trustee for 12 years. I handled more than 13,000 bankruptcy cases during the term. I look forward to meeting you and seeing how I can help.

how-do-i-start

Schedule your consultation TODAY.

  • This field is for validation purposes and should be left unchanged.

Latest Articles

Marie Callender’s Files Chapter 11 Bankruptcy

Perkins & Marie Callender’s Holding LLC, which operates U.S. family dining restaurants, filed for Chapter 11 bankruptcy protection on Monday with the U.S. bankruptcy court in Delaware. The Memphis, Tennessee-based company said Monday it plans...

Read More...

Barneys New York to file bankruptcy

Barneys New York on Tuesday said that it's filing for bankruptcy and will close 15 locations.  As part of its bankruptcy filing, Barneys New York will close its stores in Chicago, Las Vegas and Seattle, as...

Read More...

Parker Drilling files bankruptcy

Parker Drilling announced Wednesday morning that it had filed for a “pre-arranged” chapter 11 bankruptcy. Parker Drilling’s proposed plan will reduce two-thirds of funded debt and inject $95 million of equity capital through a backstopped rights...

Read More...

USA Gymnastics files bankruptcy

Facing 100 lawsuits from more than 350 sexual-assault victims of team physician Larry Nassar, USA Gymnastics filed for bankruptcy protection last week. Its recently appointed board chairman said the step was taken to expedite payment of...

Read More...
Reader's Choice 2017 award