People in Oklahoma who have an overwhelming amount of debt often feel an extreme amount of stress. Often, their debt is the result of issues beyond their control, such as the loss of a job or a serious medical condition. In addition to having the debt, many people start to receive harassing calls from debt collectors, prompting them to seek relief. Chapter 13 bankruptcy may be the best one option to manage debt and stop harassment.
Many professionals in Oklahoma and across the country work hard to achieve financial success. However, even when that success if achieved, it may be difficult to maintain. Unfortunately, even famous athletes who have made millions in their careers find themselves struggling with overwhelming debt. For example, famous baseball player Livan Hernandez has recently sought Chapter 13 bankruptcy protection.
Oklahoma consumers may find themselves in a financial predicament, unable to make their monthly payments and dealing with unrelenting phone calls from creditors. This is an incredibly frustrating situation, but it is not hopeless. In fact, through Chapter 13 bankruptcy, people may be able to ease their unmanageable burden of debt and gain a fresh financial start.
No one is immune to financial difficulties. Even those people in Oklahoma who feel relatively financially secure can experience a series of setbacks that can leave them wondering how they will ever pay off their debt. One out-of-state politician claims that because of health issues and damage to her house from Hurricane Sandy, she and her husband are seeking to restructure their debt through Chapter 13 bankruptcy.
Financial problems can create a great deal of stress in a person's life. If you are struggling to make ends meet, you may eventually face the threat of losing your home due to foreclosure, in addition to the stress you are already experiencing over how you will pay your bills every month. If your lender is threatening such an action, there are options available to help those in Oklahoma to stop foreclosure.
In an earlier post, we discussed the advantages of filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy, which is also known as reorganization bankruptcy, can help you save your home from foreclosure, create new payment plans for certain debts, and provide a buffer between you and your creditors. Oklahoma residents who wish to file for Chapter 13 bankruptcy must meet specific requirements.
Many posts have been written about the difficulty of discharging student loan debt in bankruptcy including recently on our site. The undue hardship test for totally erasing a student loan debt is a difficult hill to climb. But other options may be available, if not to discharge the debt, at least to manage it.
If you have reached the point financially where you are thinking about personal bankruptcy, you may be wondering which of the two most common forms for individuals, Chapter 7, or Chapter 13, is right for you. A key part of your answer will depend on what property and other assets you have, and how much of those assets you want to keep when you emerge from the bankruptcy process.
Efforts by the federal government to stop creditor harassment that violated consumer protection laws ended in a government victory when a judge dismissed a lawsuit by debt collectors seeking to be allowed to continue working on behalf of the government that fired them. The companies had been working for the U.S. Education Department under contracts to collect student loans on which borrowers had defaulted.
As we have discussed in earlier posts, one of the defining characteristics of Chapter 13 bankruptcy compared to Chapter 7 bankruptcy is the centrality of the payment plan as opposed to a focus on debt discharge. Given the payment plan's significance, it is important for any bankruptcy in Chapter 13 for the debtor and his or her attorney to fully understand how to create a plan that will be acceptable to creditors and the bankruptcy court and which will have the best chance of being fully carried out.