Dischargeable Debts in Oklahoma

Video Transcribed: Oklahoma Attorney Edward Kelley with 888debtline on video number two in this series, things you must know before you file a chapter 7 bankruptcy. So last time we discussed the threshold issues of whether you qualify vis-a-vis your income and whether you’ve done a bankruptcy in the past eight years. If you have, you can’t do it. If your income is over the cutoffs, you can’t do it. If your income is over, you probably can do a chapter 13 but we’ve talked about that in other series and we will talk about that more in future series.

Today we’re going to talk about another thing you need to know before you make a decision on filing a chapter seven What Type Of Debts Can Be Dischargeable Oklahoma? So here’s the big ones you need to know, student loans are not dischargeable. Although if you get rid of all your other debts, it’s going to be a lot easier to pay off that debt but as it stands now, student loans, and by that I don’t mean a loan that was used for tuition, I mean a federally backed student loan. Generally you’re going to go through the FAFSA process and those are going to be guaranteed by the

government. Those are absolutely non-dischargeable. Child support, also non-dischargeable. So if that’s one of the debts you’re considering, chapter seven won’t help you. Criminal penalties, restitution, things like that. Not dischargeable. Chapter seven won’t help you there. Although certain civil penalties or I should say more civil reimbursement, you know if the city mows your lawn because you didn’t and cited you, that cost can be discharged in a bankruptcy.

Support alimony, generally non-dischargeable. Drunk driving related, personal injury judgement against you are not dischargeable. Fraudulent debts, you know someone’s sitting out there and I was going to say you defrauded them. If you list them in the bankruptcy as a debt, you’re going to discharge, they may jump in, file an adversary and come after you.

So you want to consider who’s out there because you have to give notice to every creditor that is humanly possible to do so, and also bear in mind your secured debts. So if you’re going to wipe out a debt that is secured properly, secured by collateral, you’re going to have to give that collateral up. So certainly keep that in mind. It’s not a get rid of the debt but keep the collateral kind of deal.

So unless there is some error in the way that they’ve perfected their secured interest, we’ll talk more about that in another series but these are the things you need to consider from last week. Do you make too much money? Have you done a bankruptcy in the last eight years, and second is your debt primarily student loan debt, child support, debt, criminal penalties, alimony.

Another thing we talked about in other series, if you are assigned a debt in a divorce, so you have a credit card with your ex-wife, you are assigned by the divorce court responsibility for that debt.

You can discharge it in bankruptcy, but your ex spouse can still come after you for contempt. So bear that in mind if that’s what you’re getting out from under chapter seven may not be the best deal for you unless can, if you’re in the process of divorce and can get her or him to do it with you. So those are more threshold issues and we’ll look at more things you absolutely must know before you determine whether you want to file a chapter seven in the next video. As always, you can reach me directly at 888 Debtline or email me at Edward@wirthlawoffice.com