If you’re considering bankruptcy in Tulsa, Oklahoma, one of the most important decisions is whether to file Chapter 7 or Chapter 13 bankruptcy.
Both can eliminate or restructure debt, stop many collection efforts and provide financial relief, but they work very differently.
What Is Chapter 7 Bankruptcy in Oklahoma?
Chapter 7 is the type of bankruptcy many people think about when they hear the word “bankruptcy.”
For qualifying debtors, Chapter 7 may discharge debts such as:
- Credit cards
- Medical bills
- Personal loans
- Collection accounts
- Certain judgments
- Old utility bills
A Chapter 7 case generally does not require the three-to-five-year repayment plan associated with Chapter 13.
However, income, assets, prior bankruptcy filings and other factors can affect eligibility.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy uses a court-approved repayment plan, generally lasting three to five years.
Chapter 13 may be particularly useful if you need to:
- Stop a home foreclosure
- Catch up past-due mortgage payments
- Protect property
- Deal with certain tax debts
- Address vehicle debt
Should I File Chapter 7 or Chapter 13 in Tulsa?
The answer depends on much more than your income.
A Tulsa bankruptcy attorney should consider your income, expenses, property, mortgage, vehicles, taxes, lawsuits and financial goals before recommending Chapter 7 or Chapter 13.
Sometimes Chapter 7 is clearly the better choice. Other times Chapter 13 provides protections that aren’t available in Chapter 7.
Brown Law Firm represents Oklahoma consumers in Chapter 7 and Chapter 13 bankruptcy cases. Contact our Tulsa bankruptcy office to discuss which type of bankruptcy may provide the best solution for your financial situation.
