Tahlequah Bankruptcy Lawyers
Cook/Thompson Your Tahlequah Bankruptcy Lawyers
What Is Bankruptcy?
Those who find that making payments on monthly bills or collectors is hard might benefit from filing for bankruptcy. This is a procedure that can involve Tahlequah bankruptcy lawyers and other members of the court to offer a way for people to gain control of their finances by eliminating debts. There are different types of bankruptcy depending on how much debt is owed and which chapter is best for the consumer. Our Tahlequah bankruptcy attorneys can help in determining the best solution for the consumer in order to establish credit once again in the future and to ensure that all income each month isn’t depleted.
What Is Chapter 7?
This is a common type of filing for both businesses and consumers. Most Chapter 7 filings take about three to six months to complete. Some of the property that is owned could be seized in the event payments aren’t made, to use as collateral or sold to pay off bills that are owed. Debts that are unsecured will be forgiven with no monetary obligation after the bankruptcy has been filed. If there is secured debt, there are a few options that the consumer has, one being to continue making the payments as before. Another option is to sell or give back the collateral that was used to secure the debt in the first place. Child support and taxes that are due are not removed with Chapter 7. Tahlequah bankruptcy lawyers can help to determine if this is the best solution by looking at the income to debt ratio.
What Is Chapter 13?
This is a type of bankruptcy for those who make a certain amount of income. A payment plan is devised in court, and the plan must be maintained over the course of the bankruptcy term. Most terms are three to five years. Amounts for the payments are calculated based on the income of the consumer for each month. Our Tahlequah bankruptcy attorney will work to only offer the sustainable and reliable income that the consumer has instead of income that is sporadic, such as child support that isn’t paid on a regular basis.
Do I Qualify For Bankruptcy?
When considering Chapter 7, the consumer must be able to show that there is not enough money to file for Chapter 13. There are tests that the court will conduct to determine which category the consumer falls into before the final filing process. Those who make less money than the state median and can show that there is a hardship in making payments on time typically qualify for filing.