Oklahoma Bankruptcy Frequently Asked Questions (FAQs) [Part II]
This is Part II of our two-installment blog post answering frequently asked questions about bankruptcy in Oklahoma. Part I of this blog provides more
Do I need to appear in Oklahoma bankruptcy court?
Most consumer bankruptcies do not involve an appearance in a bankruptcy court. Debtors do have to appear at a “meeting of creditors,” which is an informal proceeding that may or may not actually be attended by creditors. The meeting is conducted by the bankruptcy trustee who will ask questions about information in your schedules and other paperwork. If you own a home, it is common that a representative of the mortgage company will appear at the meeting of creditor. Many times there are no creditors that even appear at this informal proceeding.
Will I be able to get credit or buy a home after Filing bankruptcy?
While bankruptcy will damage a debtor’s credit rating for a period of time, the long-term impact may be to improve a person’s ability to obtain financing. When a person obtains a discharge, the individual’s debt to income ratio improves immediately. Further, someone who has obtained a Chapter 7 discharge will be ineligible for another immediate Chapter 7 discharge which makes the person a better credit risk than a person who has not previously filed for bankruptcy. Many people will re-establish credit with a secured credit card, then graduate to unsecured cards with less than optimal interest rates. If an individual continues to make timely payments, the credit terms will improve. Debtors can even qualify for an FHA loan two years after their Chapter 7 discharge.
How will I know whether I can file Chapter 7?
While most people with no significant non-exempt assets would prefer to file Chapter 7, this requires meeting the income qualification requirements. If a debtor’s household income is below the median for a family of the same size in the state, the individual will qualify for Chapter 7 under the means test. These thresholds are far less exacting than needs based testing for public benefits. For example, the threshold to qualify for Chapter 7 was slightly over $60,000 per year for a family of four in bankruptcies up to April 30, 2012.
Can I seek bankruptcy relief without an attorney?
Although there is no requirement that a person be represented by an Oklahoma bankruptcy attorney, there are significant advantages to working with a knowledgeable bankruptcy lawyer. The paperwork for filing bankruptcy is extensive and filled with terminology that may be confusing and unfamiliar. Mistakes made because a debtor is not well versed in the law and procedures of the bankruptcy process can have devastating consequences. For example, we order and analyze credit reports from the three main credit bureaus because a bankruptcy discharge will not apply to any creditor who is inadvertently omitted from the bankruptcy paperwork. Debtors also benefit from having a legal representation at the meeting of creditors which can be intimidating without legal representation.
Contact a Bankruptcy Attorney About Filing Bankruptcy Tulsa
While we have endeavored to answer many common questions about bankruptcy in Oklahoma, our experienced Oklahoma Bankruptcy Attorneys invite you to contact us with more specific questions about your situation. Our Oklahoma Bankruptcy Attorneys offer a free initial consultation so that we can answer your questions, evaluate your needs and explain your options. We invite you to contact us at <strong>Kania Law Office at (918) 743-2233 or fill out this form today!
Filing Bankruptcy Tulsa
http://www.kanialaw.com/tulsa-bankruptcy-lawyers-in-oklahoma/filing-bankruptcy-tulsa-2.htm
No comments:
Post a Comment