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Oklahoma Bankruptcy Lawyer

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If you are considering filing for bankruptcy in the state of Oklahoma, and wish that you could talk to someone with extensive knowledge of the bankruptcy laws, it might be time to contact a qualified Oklahoma bankruptcy attorney.

Bankruptcy is defined as the legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor.

Bankruptcy does not always occur because of irresponsibility. Unforeseen events, such as job loss, divorce, damage to one's home through an act of God, or overwhelming medical expenses, can cause catastrophic financial outcomes. Even honsets, hardworking and responsible consumers can find themselves in over their heads with debt. Financial troubles may not only spell hardship but also emotional turmoil, depression and stress.

In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, in order to limit individual access to the bankruptcy court and prevent repeat bankruptcy filings. In order to file for bankruptcy, you will first have to submit to a means test. This will determine which kind of bankruptcy you'll be eligible for, Chapter 7 or Chapter 13.

Chapter 7 bankruptcy is most appropriate for individuals who have a low income and do not have many assets. It allows them to discharge more of their debt under bankruptcy. Chapter 7 bankruptcy is most similar to earlier versions of bankruptcy before the BAPCPA, and is sometimes referred to as the 'liquidation plan.' Under this plan, you will be allowed to declare some exemptions; any remaining assets you have will then be assumed by a trustee, who will sell them in order to pay back your creditors. The amount of debt above and beyond the value of those assets will then be forgiven.

On the other hand, Chapter 13 is a form of bankruptcy that is for those individuals who have a steady income and assets, such as a home or a car, that they wish to repay. Under this plan, also known as the wage earner's plan, the debtor can keep his or her car and house, or other assets, as long as they continue to make regular payments. Some of the debt may be forgiven, but the debtor must commit to repaying a portion of it, over a period of three to five years, depending on the debtor's individual financial circumstances.

The new laws make it very difficult to discharge all of one's debt by declaring bankruptcy, in order to encourage those declaring bankruptcy to explore all of the financial options available to them before making the decision to file. A bankruptcy attorney, who is well-versed in all kinds of debt relief, will be able to discuss these options with you in order to help you choose the most beneficial plan for you.

Oklahoma bankruptcy lawyers are compassionate and experienced professionals who will walk you through the system, and fight to ensure that your rights are maintained, at every step. If you feel that bankruptcy might be a viable option for you, visit the website of the American Bar Association (ABA) today. The website, to which access is free, can provide you with the resources you need to find a bankruptcy attorney in your area.