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!