Finding The Perfect Solution for Financial Problems

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.

d)      CREDIT REPORT-

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.