Filing Chapter 7 Bankruptcy in Oklahoma
A Chapter 7 bankruptcy is often called a 'liquidation' bankruptcy, because that's basically what happens to the non-exempt assets of a consumer when he or she files under this chapter. Specifically, this means that values are assigned to different assets including the home, vehicle and other items that cannot be completely liquidated in order to satisfy creditors. However, once a case is filed and the process begins, a Chapter 7 bankruptcy case can move quickly assuming that there are no problems with the documentation that's filed in furtherance of the case. Once a hearing is held and all of the numbers are confirmed, the consumer's debts will usually be discharged, thereby wiping out those debts and providing the consumer with a fresh start.
Oklahoma Chapter 13 Bankruptcy Filing
A Chapter 13 bankruptcy case is different from a Chapter 7 in several ways. Perhaps the most important difference is that filing under this chapter can allow someone to retain non-exempt property as long as any delinquencies such as with a mortgage are made current. This is usually done through the filing of a repayment plan that provides at least partial payment to creditors until the plan is complete. While Chapter 13 cases usually take much longer to complete so that the remaining debts are discharged, it is in some ways a better option for those who are experiencing financial problems but who are also generating income.
In terms of which type of bankruptcy filing would be better for any individual, that determination needs to be made after a thorough review of someone's financial picture as well as deciding on what if any property the person filing the case wants to retain. There are also other legalities involved that deal with a person's income levels versus the area's poverty level that need to be clarified. Regardless, filing a bankruptcy can put an end to all of the financial problems that someone deals with. If this is an option you'd like to explore, contact the Arizona bankruptcy lawyers at Phillips & Associates today to schedule a free initial consultation.
