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Finding The Perfect Solution for Financial Problems

Friday, December 18, 2020

Stuck with financial problems? Thank the new concept of bankruptcy.

Bankruptcy is an alternate of all financial problems. In simple words, bankruptcy is a legal procedure using, which anyone who cannot repay debts may look for relief. Relief in form of exemption from paying back some or all debts. Here is a description of bankruptcy exemptions in Oklahoma.

·         The main purposes of bankruptcy are:-

a)      A new start for a sincere and truthful but helpless Debtor.

b)      And equivalent conduct towards Creditor.

If someone registers for bankruptcy acts act according to its code rules, the law gives:

-          Discharge i.e. canceling many of the debts by court orders.

-          And allow the debtor to pay a portion of what they owed depending on their ability.

Discharge helps the debtor as it prevents a creditor from seeking the collection of the remaining amount owed.

·         Kinds of bankruptcy:-

a)      2-3 MONTH procedure- The real property is sold to repay for the discharge of the debts.

b)      3-5 YEAR procedure- Under the supervision of the court’s repayment plan, some portion of the debt is paid.

c)       3-5 YEAR procedure- similar to above but only for fishermen, farmers, and family.

d)      Complex procedure- Mainly business debtors use this. Sometimes individuals with considerable debt and property also use it.

·         2-3 Month vs. 3-5 Year process:-

a)      Bankruptcy exemptions in Oklahoma (Property that can be kept)-

2-3 Months: The necessary portion is exempted. And the trustee that has been appointed by the court sells the remaining property to pay back the creditors.

3-5   Years:  All property is exempted. Debts are paid back by income from the future.

b)      TIME TAKEN-

2-3 Months.

3-5 Years. A portion of what was owed needs to be paid back in this duration to the creditors.

c)       COST-

2-3 Months: $299 to file a petition in the court. And additional charges of the lawyer depending on the lawyer’s fee.

3-4 Years: $274 to file a petition in the court. And additional charges of a lawyer.


2-3 Months: remains in the credit report for 10 years.

3-5 Years: allowed to be kept.

·         Eligibility for Bankruptcy exemptions in Oklahoma:-

a)      If someone with mainly consumer debts wants to file a case, the lawyer will first examinee their finances. If the debtor can pay based on a formula called “mean test”; the debtor is not allowed to file the case.

b)      If the income of the debtor is at or less than the median earnings; the man test is not applied.

c)       If income higher than the median earnings. The mean test makes a comparison of monthly earnings minus allowed living expenses, to a portion of unsecured debt. This determines how much is needed to be paid to the creditor if under 3-5 years process. However, if uncertain of the value court may allow staying under 2-3 months procedure.

d)      For filing a case under a 3-5 years procedure, the debtor should have a regular income. And debts should be over a fixed amount. However, this amount goes up every 3 years.

Creditors must stop an attempt to call for debts after a BANKRUPTCY case has been filed.

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