How Chapter 7 Bankruptcy Can Provide Relief
Good afternoon, everybody. Edward Kelly here, your Oklahoma bankruptcy attorney with another three minutes to financial freedom. We’re going to go back to basics and talk about what is a Chapter 7 and can it help me?
So, the simplest explanation for Chapter 7 is it’s a liquidation in exchange for giving up any non-protected assets. Generally, there aren’t many. I’m going to get rid of all of your debt. That is all your debt except the small amount that doesn’t qualify. Basically, student loans that are government-backed, child support, and court fines. For most people, those aren’t going to apply. So, most of your debt will be wiped out.
For most people, if they have student loans, they may have enough other debt to still justify it. So, on the asset side, you’re going to get to keep your cars, one per spouse, up to $7,500 in value or equity. So, if it’s worth $7,500 or less, no problem. It’s protected. You keep it. If it’s worth more than that, if you owe on it, subtract that first. So, if your car’s worth $10,000 but you owe $5,000, subtract the $5,000. It’s only worth $5,000. You get to keep it, no problem. All your household belongings, TV, furniture, beds, all that stuff, you get to keep that. Only things you need to worry about are like boats, cabins, oil royalties, savings, stocks, bonds, the type of assets you probably don’t have if you’re going into Chapter 7 bankruptcy. Your home is protected under Oklahoma exemption laws, pretty much unlimited on an acre or less in city limits and many more acres outside the city limits. And again, most debts are dischargeable in Chapter 7, medical bills, credit cards, regular signature loans, payday loans, etc. Most of the things that you’re going to be having problems with, we get rid of.
Is Chapter 7 Bankruptcy Right for You?
So, we’re at Chapter 7. If you’ve got a lot of debt that isn’t student loans, child support, if it’s your regular medical, credit cards, unsecured loans, and if you don’t have a bunch of assets, meaning you just own your home and your vehicles and your normal household stuff, Chapter 7 is a great solution for you. You can get rid of all that debt, move on with your life. Takes three months from start to finish, from the date of filing to the discharge. And once that discharge is done, you can move on with your life. Now, do keep in mind, you can only do it once every eight years, so you want to make sure you get everything included. But that’s the bare bones, Chapter 7 bankruptcy, a great solution for a lot of people.
Contact Us for a Free Consultation
Again, this is OKC chapter 7 lawyer Edward Kelly with Three Minutes to Financial Freedom. You can reach me at oklahomacitybankruptcyattorney.pro to schedule a free consultation. Take the first step towards your financial freedom today!