The Chapter 7 Bankruptcy Process in OK

Passed the means test? Get started on filing today!

Chapter 7 bankruptcy is often referred to as liquidation bankruptcy, as consumers must sell off their valuable assets to pay back debts. Anything that cannot be paid off will likely be discharged, so long as it is not secured. At Alexander Hilton & Associates, we have been representing clients throughout this process for more than 20 years. Our Oklahoma City bankruptcy lawyer understands how Chapter 7 works and can help ensure you have a successful filing.

The following is a basic overview of what is involved in Chapter 7:

  • Make sure you pass the means test
  • Collect all bills, files, and related financial documents
  • Work with your attorney to get maximum assets exempted
  • Submit petition to file in the correct bankruptcy court
  • Go through the liquidation process with your assets to pay off debts

When you submit your petition, so long as the court approves it, a trustee will be assigned to your case to oversee your assets. The trustee will be responsible for reviewing all of your assets and working with you to liquidate, or sell them off, and provide the proceeds to creditors. Though most creditors will not receive their full loan amount, they must typically accept what is distributed in the liquidation process. For secured debts, such as student loans, child support, and alimony, you will likely need to continue making payments and won’t be able to use the discharge process to eliminate them.

Why are exemptions important to my filing?

When you decide to file for Chapter 7 bankruptcy, it is important that you are prepared to utilize all available exemptions. These exemptions are designed to help you save property from the liquidation process and avoid walking away from bankruptcy completely empty handed. By working with a skilled and resourceful legal advocate, you can strategically use these exemptions to preserve a majority of your valued property while still discharging most of your debts.

Some of the assets you can save through exemptions include:

  • A vehicle worth up to $7,500 (or $15,000 if married)
  • No more than $4,000 in clothes
  • Certain retirement accounts
  • A maximum of 160 acres outside the city
  • $10,000 for work-related equipment and tools

Call Our Seasoned Oklahoma City Bankruptcy Attorney Today

Chapter 7 can involve a myriad of paperwork, organization, and understanding of the exemption process. If you are ready to take the next step towards financial freedom, be sure to call on Alexander Hilton & Associates.

Do not hesitate to contact our firm today to schedule your initial consultation. Our compassionate OKC bankruptcy attorney looks forward to providing the support you need!

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