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Bankruptcy May Be Your Option

The basics of Chapter 13 bankruptcy

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.

Chapter 13 bankruptcy is a type of consumer bankruptcy, an option available to someone who makes a regular income. For this reason, it is often called a wage earner's plan. Through this type of bankruptcy, an individual will make a plan to repay their debts over a three to five year period. The bankruptcy court must approve this plan, and an applicant's actual income will determine the length of the individual bankruptcy process. Chapter 13 bankruptcy is never longer than five years.

Once under bankruptcy protection, an individual is shielded from further collection efforts from creditors. This is called the automatic stay. Additionally, this type of bankruptcy does not require the liquidation of assets. This means it is likely a filer will be able to keep valuable assets and protect his or her home from foreclosure.

Not everyone is eligible for Chapter 13 bankruptcy, and not everyone who applies will be approved for this option. If an Oklahoma consumer is interested in this choice, he or she should seek the counsel of a lawyer knowledgeable in bankruptcy law. Filing for bankruptcy is a serious decision, and it is one that should be made only after careful consideration of all options and an evaluation of the individual situation.

Source: uscourts.gov, "Chapter 13 - Bankruptcy Basics", Accessed on Aug. 14, 2016

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