Back to Basics: Chapter 7 Bankruptcy Explained
Hello everybody, Edward Kelley, your Oklahoma bankruptcy attorney with Three Minutes to Financial Freedom. Today we’re going to go back to basics. What is a Chapter 7 bankruptcy? So, it’s what we call a liquidation bankruptcy. So that’s just like a liquidation sale you might see at the store. We’re just trying to get rid of all this debt and get it out the door and move on down the road. Chapter 7 generally takes 90 days from filing to finish. And depending on what assets you have, you may not lose a thing.
So what is a 7? Well, in exchange for giving up any assets that you have that are not protected, you get to get rid of all your dischargeable debt. So, what assets are protected? Well, your home is protected. Pretty much unlimited in Oklahoma. It’s not technically unlimited, but we have one of the best homestead exemptions in the country, along with Florida. So your home is probably protected. Bear in mind that if you’re behind on it, you have to do Chapter 13, which we’ll also discuss later in the week.
Protected Assets and Debts
Your vehicle is protected up to $7,500 in equity. And that means what it’s worth minus what you owe, or if it’s paid off, just what it’s worth. And that’s doing a generous Blue Book value. So most people that come to me, their cars are entirely protected. If you’ve got a high dollar car, you might have a problem. And a lot of people ask, are they going to take my couches, my furniture, my kitchen stuff, my microwave? No, they don’t take the household items.
Call to Action: Schedule a Strategy Session
Are you considering Chapter 7 bankruptcy in Oklahoma? Contact me, Edward Kelley, at 405-563-7888 for a low-cost initial strategy session. Let’s explore your options and find a path to financial freedom together.