If you are faced with such a phenomenon as oklahoma city bankruptcy attorney, you are definitely interested in the topic of filing for bankruptcy. Let’s take a closer look at what Chapter 13 Bankruptcy is and what details you need to know about filing an application in order to file it correctly. In this article, you will find all the detailed and useful information.
Chapter 13 Bankruptcy. What is it about?
Individuals and married couples may use Chapter 13 of the bankruptcy legislation to restructure their debts. Suppose you are behind on your mortgage payments on your house or other real property. In that case, you may be entitled to declare Chapter 13 bankruptcy to prevent the property from being sold in foreclosure and to stretch payments to settle your mortgage arrearage over the length of your Chapter 13 repayment plan.
You may be able to utilize Chapter 13 to pay off your automobile loan during the course of your Chapter 13 repayment plan if you are behind on your payments on your car. To be eligible to file Chapter 13, you must first propose and obtain approval of your Chapter 13 plan from the bankruptcy court.
Once the plan has been confirmed by the bankruptcy court, you must follow the plan by making all of the payments specified in the plan for the duration of the plan, which is typically a minimum of 36 months (3 years) and a maximum of 60 months (5 years).
If you want a clean slate discharge of unsecured obligations rather than repayment via a bankruptcy plan, you should investigate if you are eligible for Chapter 7 bankruptcy protection.
The advantages of Chapter 13 Bankruptcy
Perhaps most importantly, Chapter 13 allows people to save their houses from being foreclosed on. Individuals may suspend foreclosure proceedings and perhaps cure outstanding mortgage payments over time by filing under this provision. Nonetheless, they must continue to make all mortgage payments due throughout the chapter 13 plan on schedule.
Another benefit of Chapter 13 is that it enables people to reschedule secured obligations (other than a mortgage on their principal property) and spread them out over the course of the plan.
How to file chapter 13 bankruptcy in Oklahoma?
The debtor must gather the following information in order to complete the Official Bankruptcy Forms, which include the petition, statement of financial affairs, and schedules:
- A list of all creditors, together with the amounts and types of claims they have;
- The debtor’s source, quantity, and frequency of income;
- A list of all the debtor’s assets; and
- A thorough breakdown of the debtor’s monthly living expenditures, such as food, clothes, housing, utilities, taxes, transportation, medication, and so on.
Married people must acquire this information for their spouse whether they file a joint petition, separate individual petitions, or even if only one spouse files. When only one spouse files, the income and spending of the non-filing spouse must be disclosed so that the court, trustee, and creditors may assess the household’s financial state. All documents must be transferred to an attorney.