What Is the Legal System of Bankruptcy in Oklahoma?
The worst nightmares of any person are excessive debt and foreclosure and the only legal means to decrease or eliminate economic setbacks is the Oklahoma bankruptcy application. The bankruptcy method is, however, complicated. It is, therefore, important to know the objective and procedure of bankruptcy filing.
Bankruptcy and Its Lawful Grounds
Section 8, Article I, clause 4 the constitution of the United States gives Congress the authority to establish, enact and implement uniform laws in the United States on bankruptcies.
Unlike previous arguments, Congress' power to bankruptcy is not confined to legislating for the trader class alone. Since 1800, during periods of depression or financial turmoil, Congress constantly had its power of bankruptcy. However, the 1978 bankruptcy reform act, followed by several reforms on bankruptcy legislation was introduced from 1898 onwards.
The introduction of Chapter 7 and Chapter 13 bankruptcy is included in these latest reforms. Under Chapter 7, creditors are protected, and certain assets are liquidated to pay off their liabilities. Chapter 13 on bankruptcy enables periodic revenue petitioners to create a reimbursement plan to reimburse all or a portion of their debts. These two kinds of bankruptcies provide an opportunity for people to regain control of their finances.
Chapter 7 Bankruptcy
You may hold fundamental necessities under the Oklahoma Law, including home, mobilization, clothing (up to $4,000), and automobiles (up to $7,500 equity).
In the case of "secured" debt, like a vehicle, you owe cash. You have placed certain properties as collateral for secured debt. The creditor may then take or "possess" the collateral when you do not pay the debt.
If you fail, you have to agree to pay the guaranteed debt or lose the property.
Chapter 13 Bankruptcy
You have the space to take your bills in Chapter 13, but you do have sufficient revenue to cover fundamental living requirements and to pay in Chapter 13 every month. In Chapter 13, you are able to preserve and pay for your assets, such as vehicles, over time. You can catch up and prevent forfeiture on your house payments. Furthermore, Chapter 13 can prevent creditors from suing others who may have signed the debt with you. In addition, Chapter 13 may allow you to pay for non-Chapter 7 debts, including child support and taxation.
A Few Other Notable Facts
Failure prevents salary additions and bill collector' telephone calls. You can also restore utilities or obtain a permit for drivers.
Your credit report may contain bankruptcy for 7 to 10 years. This could make it difficult in the future to obtain credit.
You cannot re-file for at least 6 years if you register bankruptcy in Chapter 7. If you create more issues with credit, Chapter 13 would be your only alternative for bankruptcy.
You have to pay a filing fee whether you file Chapter 7 or Chapter 13.
Contact an attorney to decide whether bankruptcy would help you. If you do not know how to file bankruptcy in Oklahoma, Chris Mudd is there for you.
** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.