Filing for bankruptcy is a viable financial strategy for individuals who have recently experienced a significant change in income and are having trouble making ends meet. Filing for bankruptcy is like taking off a Band-Aid; the quicker you do it, the sooner it will be over.
You have the ability to file either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is essentially liquidating your assets to cover your debts while Chapter 13 requires you to pay a portion of your debt. The bankruptcy you choose depends on your financial situation and goals. The first step is to determine when to file bankruptcy.
When to File for Bankruptcy
If you are considering filing for bankruptcy in Oklahoma, then you must thoroughly consider every option you have available, since your bankruptcy will remain on your credit history for seven years and it is often viewed unfavorably by creditors.
You may find it is in your best interest to file for bankruptcy when you are stressing over making payments to your creditor. Additionally, you should consider filing bankruptcy if you have lost your job, you are being sued, or you are about to lose your home. In these situations, filing can help you gain control of your finances and give you peace of mind.
The Benefits of Filing for Bankruptcy
Although many people have a negative concept of bankruptcy, many people find solace in receiving financial protection from the bankruptcy courts. Both types of bankruptcies can be beneficial to you, depending on your financial goals. Filing for bankruptcy includes the following benefits:
- Stopping a foreclosure sale
- Preventing creditors from calling
- Restructuring debt
- Gaining financial freedom after discharge
Although some benefits you experience immediately, some are long-term. You can weigh your options by considering the consequences.
The Consequences of Bankruptcy
Highlighting the benefits of bankruptcy only gives you one side of the story. There are some drawbacks to filing your case with the bankruptcy courts. For starters, it can negatively affect your credit rating. With so many creditors basing their credit decision on your credit history, filing bankruptcy makes it harder for you to establish credit. Although you may be eligible to start rebuilding your credit after your discharge with Chapter 7 bankruptcy, it can take years to begin the process when you file Chapter 13 bankruptcy. Though it affects your credit, it may help you improve your credit in the long run.
Additional consequences of filing for bankruptcy include:
- Loss of assets
- Lower credit score
- Public knowledge of the debt
Fortunately, when you file for bankruptcy in the state of Oklahoma, you have some protections many other states don’t provide.
In bankruptcy, exemptions often allow you to keep assets and reduce your overall bankruptcy. When you file for Chapter 13, exemptions are extremely critical since they can result in a lower payment. In the state of Oklahoma, you can exempt equity in your home and your car, which prevents you from starting over completely, after filing for bankruptcy. With the assistance of your bankruptcy attorney, you can determine what exemptions make the most sense strategically.
Your Attorney Is Your Partner during a Bankruptcy Proceeding
Bankruptcy attorneys help you understand the law. They work with you to ensure you understand what is going on with your assets. They also provide you with advice to help you leverage the full power of the law. When you employ the services of a bankruptcy attorney, you are giving yourself a fair chance at overcoming your financial situation. From working directly to the trustee to petitioning the courts on your behalf when you experience difficulties, your bankruptcy attorney is your partner throughout your case.
When you are researching a lawyer to handle your bankruptcy proceedings, it is important to choose the best lawyer you can afford. You must diligently work to find a bankruptcy lawyer who is methodical since your ability to protect your assets hinges on finding a capable attorney. At no time should you settle for an attorney because your home, car, credit history, and financial freedom are at stake.
Although filing for bankruptcy is often viewed negatively by others, there are many positive aspects. In the long term, both types of bankruptcy can help you regain control over your finances and place you in a position of power. Immediately, filing Chapter 13 will help you stop a foreclosure sale on your house and help you restructure your debt so that you are no longer stressing over your bills and maintaining your finances.
To contact an experienced bankruptcy attorney, call Laird Hammons Laird at (405) 301-8586.
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