Which Chapter of Bankruptcy is Ideal for Application?

Even though Oklahoma is supposed to be one of the safest states in terms of recession, you might still see many Oklahomans going through financially challenging times. If you are one of those struggling with debt, you should consider talking to a bankruptcy attorney. .

A bankruptcy lawyer can help you restructure your debt and offer you protection from creditors. It does not matter whether you are an individual or own a business; you have a right to eliminate your debt according to the state's and center's bankruptcy law. Your selected attorney will guide you through the process, but you should have an idea about the Chapter 7 and Chapter 13 bankruptcy laws.

Chapter 7

Chapter 7 is a commonly-useful section for bankruptcy cases. Your bankruptcy attorney in OKC can help protect you and your business for around 3 to 6 months, according to the Chapter 7 bankruptcy law. The law requires you to 'liquidate' your nonexempt property to pay off the creditors. Through this process, you can get rid of debts without collateral protection.

Elimination of Debt

If you are under credit card debts or any other consumer debts, you will get a discharge through bankruptcy. But child support debts or alimony or taxes are some examples where you cannot expect elimination.

Chapter 13

Chapter 13 applies when you get the offer of restructures for your debts. You cannot expect discharge in this case. The law asks you to repay the creditor within a specific time.

Repaying the Debt

If your bankruptcy case falls under Chapter 13, your bankruptcy attorney in OKC must devise a plan you will agree with if you have to repay your creditor. You may be discharged from the unsecured debt only after you repay the secured debt within 3 to 5 years.

The amount of installment in this Chapter depends on multiple factors such as your income, the amount of unsecured debt, the tenure, etc. Also, the installment calculation happens, considering your missed payments. It means that you must repay even the missed amount to your creditor.

Which Chapter Should You Choose?

Depending on your situation, your attorney will help you choose the better Chapter between Chapter 7 and Chapter 13. It is ideal for you to hire an experienced bankruptcy attorney in OKC from the renowned Reneau Law Group. Contact us to know more.

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.