Under federal law, Chapter 7 bankruptcy allows an individual to get a fresh start with his or her financial position. When you hire a bankruptcy lawyer in Norman OK to file for Chapter 7 on your behalf the greatest proportion of your unsecured debt will be eliminated. Although there are a number of ways to go about declaring bankruptcy, Chapter 7 is the most often used way by those who have few assets to lose.
If you have incurred a debt and you have not had to pledge anything in the way of collateral to guarantee the debt, this debt is unsecured. Typical examples of unsecured debt are credit cards, medical, etc. Like anything to do with the law, declaring bankruptcy is complicated and it is unadvisable for anyone to attempt to file personally, a seasoned bankruptcy lawyer in Norman OK will guide you carefully through the process.
If your house payments and car payments are not in arrears it is often possible under the rules of Chapter 7 bankruptcy to keep these assets. Chapter 7 is designed to eliminate debt; it is not designed to strip you of your home, personal possessions or a way of your earning an income. If you are in deep debt and behind on your obligations and you do not file for Chapter 7, this is when you stand to lose your home and car as they will be repossessed.
There has been certain rule changes recently that made it a little more difficult to file for protection under chapter 7, your bankruptcy lawyer knows the new rules and how they may apply to you. Basically, you will be subjected to a means test; your income and expenses will be compared to a state standard; if your income falls below the state median, you can file chapter 7. If your income exceeds the state median, you will find chapter 13 the better option. Chapter 13 bankruptcy allows you to pay your debts over a period of time with your available income.
In co-operation with your bankruptcy lawyer in Norman OK, you will prepare and file a petition for bankruptcy along with certain schedules and statements of your current financial condition. When your case gets to bankruptcy court, you must provide a list of your current credits and how much you owe each of them, the amount and source of your income, details of any property you own along with details of your current living expenses.
Once you file for chapter 7 protection, your creditors are made aware of this and by law they must cease any efforts to collect the debt owing. This is one of the main benefits of filing for bankruptcy; everything is just put on hold until the case is completed, allowing the bankrupt some much needed breathing room.
If your debt load has reached an impossible level it may be time to hire a bankruptcy lawyer in Norman OK and file for Chapter 7 bankruptcy. You are invited to discuss your situation with the Lawyer Law Firm.
