For some Oklahoma citizens, filing bankruptcy might be a scary ordeal. Although, one helpful way of relieving this fear is realizing a few basic facts about Oklahoma bankruptcy. The following is a quick overview about the information involved in this legal issue.

While it is true the US Bankruptcy Code is the main building block to every state law dealing with this financial legality issue, different aspects to the laws will change between states. There exist certain and pinpointed things that can vary greatly. A few of these concepts deal with the median income rate and which properties individuals own that are exempt from the proceedings. This fact is true for Oklahoma, too.

There are a few different kinds of bankruptcy. These types are differentiated by chapter numbers. This is very easy to understand, since each type merely refers to the numbered chapter in the Bankruptcy Code. There are many chapters, but the following covers just two common ones.

One widely known type of bankruptcy is known as Chapter Seven. In some cases this can be called total liquidation, too. Within Chapter Seven, a trustee of the court is designated to supervise the nonexempt property an individual owns. This is property is collected and sold, where the money gained from its sale is then given to the relevant creditors and any other debt remaining is eliminated.

Many might assume Chapter Seven is a very intimidating concept, because its very description seems scary. However, that is not the case at all. Oklahoma, as well as other states, have provisions in their laws that allow individuals to keep essential property, most specifically their home and one vehicle.

Another common type related to this legal debt relief is known as Chapter Thirteen. This chapter is sometimes called reorganization. This type is targeted to individuals and families, as well, but excluding farmers and fishermen who qualify for another form known as Chapter Twelve. Essentially in this type a payment plan for one’s debts is maintained for an extended period of time, typically five years. A person’s average income and their basic living expenses are utilized to calculate the structure of the plan.

For Oklahoma residents wishing to file, determining eligibility and meeting with a lawyer are important. If a single resident makes less than $38,929, he or she is able to qualify for Chapter Seven. Meeting that mark or surpassing it, they then are eligible for Chapter Thirteen. There exist different income levels for married individuals or married couples that have children, so contact an attorney for specific information on that.

There is a large amount of information in relationship to bankruptcy. Oklahoma bankruptcy, though, does not always have to be a tremendously scary or stressful undertaking. Having the simple facts to this legal process can aid individuals who require debt relief.

Joseph St. James is not an attorney and cannot provide legal advice. For legal advice specific to your situation contact a bankruptcy lawyer in Oklahoma. For additional information on chapter 7 bankruptcy you can call the Debt Line Law Office at (888) Debt-Line.