All Things Chapter 7 In Oklahoma

Video Transcribed: Oklahoma Attorney Edward Kelley here with 888 Debtline answering your bankruptcy questions. Today we’re finishing up the series, things you must know and consider before filing a chapter 7 bankruptcy. So we’ve gone through a lot of areas. Last thing we’re going to talk about as your assets, reaffirmations and what’s exempt and what isn’t. Generally your stuff, your normal personal belongings, all exempt, your home, exempt. We’ve talked already about whether you’re in city limits or not, in acreage and those kinds of things and your vehicle up to 7,500 in equity, so you’ve got loans on your house, do you want to reaffirm those? Something to think about. Generally, and you need to consult with your attorney specifically on this, but generally reaffirming your home only brings back your personal liability, which is not really something you genuinely want to bring back.

If you default on your home without a reaffirmation, they still have to go through the same procedures. That applies to real property, including your home mortgage, so you don’t gain a lot by reaffirming, although if you can get a lower interest rate or renegotiate the terms, it may be worth doing. Now the big one, car is totally different. Used to give similar advice. Car companies did not repossess unless you were behind, but according to the bankruptcy code, they are allowed to. So even if you’re completely current, if you don’t reaffirm, meaning sign a new contract on that debt, then they can repossess the collateral, the property, meaning your vehicle. They didn’t use to do that, now they’re starting to do it a lot. So I have been advising all my clients, if you want to keep your vehicle, reaffirm it. Remember there is no means in a chapter seven to catch up on delinquent payments.

So if you’re too behind on your vehicle or your home, you may need to do a 13 if you want to keep it, which can force the creditor to let you catch up, or you may consider surrendering it. So remember, reaffirm. What does reaffirmation mean? That means you’re stuck with it. It’s as if it was not in the bankruptcy, it is not discharged and you won’t be able to do another chapter seven for eight years from the filing date of this one. So plenty of time if you default for them to sue and garnish you and do all those things and you won’t be able to do much about it. Although you can file a chapter 13 before you can file a chapter 7, we’ll talk about that in another series. So remember these things. If you have other assets, remember they’re not exempt. You got that extra Harley you want to hold onto.

Now if you’re upside down on your loan on it, trustee isn’t going to want it, you can probably keep it. That loan payment though won’t count as an expense you can count against your income in terms of qualifying for a seven because it’s not essential, but trustee doesn’t want the Harley, so if you reaffirm it just remember, again, you won’t be able to get out of that, so you want to think long and hard about that. So that’s assets, considering those things in your chapter seven. That’ll close it out for this series. Our next series we’re going to talk about how does chapter seven change my life? So I’ll see you then. As always, if you have further questions or need help filing a bankruptcy, call me, Edward Kelley, 888-Debtline or email me at edward@wirthlawoffice.com