Bankruptcy Attorney Tulsa

Everything You Need to Know Before Approaching a Bankruptcy Attorney Tulsa

If your creditors are already threatening to sue you, it is about time that you file for bankruptcy. A well monitored program as this is for your protection and you must use it to your advantage. Whatever reasons that led to such a financial crunch are only secondary to what you need to do to get out of the situation. Your first step towards ‘crossing the bridge’ would be contacting a Bankruptcy attorney Tulsa, but before you do that, equip yourself with some background with respect to the concept. Roughly knowing how it works will help you prepare with the right questions when you meet a lawyer:

• There are two ways of approaching bankruptcy. Chapter 7 bankruptcy Tulsa would mean liquidating some of your assets to clear the debts while Chapter 13 would mean parting with a portion of your monthly income to drive the creditors away.

• Naturally you must understand which of the two suit your current situation. Look into both chapter 7 and chapter 13 bankruptcy separately and draw comparisons in conjunction with your current financial status. Do you have enough personal assets to clear your debt? Are you prepared to have your property subjected to liens or mortgages? If not, do you have enough left after covering monthly domestic expenses? These are but fundamental questions that you need to consider before picking a path.

• Filing for chapter 7 is quite easy. To qualify for it, you must have no record of previous disqualifications in the last six months. A means test is a parameter for its qualification, requiring the client to have an income limited to a particular amount. Through this test, the average income of the client is chalked out. This has to be determined with respect to the family members depending upon it. The regulation determines the median income, which is half the income doubled up to come up with an annual average median. This average is compared to the declared median. If the individual earns just about or less than the declared limit, the person automatically qualifies for chapter 7 and quite easily if they have lost a high income job.

• Chapter 13 drastically differs from chapter 7 in many ways. While the latter implies liquidation of non exempt assets, the former implies the discharge of disposable income to the creditors. Some jurisdictions have regulations that automatically redirect the income of the employee for repayment. Chapter 13 will require the client to be absolutely committed for the next five years. The payment plan implies repayment at fixed intervals. If the client is unable to keep up with it, the client may end up losing secured assets such as homes or cars. Job switching may reflect badly upon the five year plan.

Any Oklahoma bankruptcy attorney would tell you that Chapter 7 is cheaper compared to chapter 13. However, discharging with a disposable income may be more convenient for those with a more or less stable income. The approach is subjective to personal status so make decisions to suit your capacity and commitment.