Consumer Bankruptcy

Working Hard to Help You Get Back on Sound Financial Footing 

The Law Offices of B David Sisson has been helping clients from Oklahoma City and the surrounding area with all types of bankruptcy issues since 1990. Our experience in this area helps to ensure our clients get the representation they need no matter what type of situation they are facing. It also provides our clients with the confidence they need to get through this often stressful and overwhelming process. Don’t let your financial worries cause one more sleepless night, we are here to help.

When considering bankruptcy, one of the first things you need to know is that there are multiple types, or chapters, of bankruptcy. Each one is used in specific situations, so understating each of your options is very important. To know for sure which is right for you, you’ll want to speak with us about your situation, but learning about each of them here can be a great place to start.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed for individuals who are in a financial situation where they are unable to repay their debts. In order to qualify for Chapter 7 bankruptcy, you must have an income that is below the state median income for the past six months. In Oklahoma, that is $39,749 for an individual, $51,097 for two people, though those numbers change with updates to relevant laws so make sure to speak with an attorney to get the latest information. You can also qualify if your gross income minus qualifying expenses, is below the Median income. In some cases, you can also get an exception to the income requirements too.

If you qualify for Chapter 7 bankruptcy, you can typically keep most of your assets, which is what makes this option so attractive. Assets such as your retirement accounts and pensions are usually safe. Secured property, which would include a home and cars, that doesn’t have net equity is also protected. Even property that does have equity can be kept in many situations.

Assets that are not protected will need to be sold in order to repay as much of the debt that is owed as possible. The courts will decide which creditors will get what amount of money from the available funds. Any debt that remains will be discharged, meaning you don’t ever have to pay it. There are certain types of debts, however, that are not able to be discharged through bankruptcy. These include some types of tax debt, student loan debt, criminal restitution, alimony, child support, and certain other types.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is the other common option for helping consumers in difficult financial situations. This option allows you to keep all of your assets, both secured and unsecured, as long as you are able to resume making payments after the bankruptcy. Having this option makes it an ideal choice for those who have fallen behind on house payments, car payments, or other debts, and just need some help getting caught up.

In order to qualify for Chapter 13, you must have less than $336,900 in unsecured debt, which includes medical bills, credit cards, and personal loans. The total secured debt, which would include mortgages and car loans, must be under $1,010,350.

During the bankruptcy process, the courts will work with you and your creditors to come up with a reasonable repayment plan. These plans can last up to five years. At the end of the repayment plan, most types of unsecured debt will be discharged. Secured debts will remain, and you can begin making payments directly to the creditor rather than through the courts.

We’re Here to Help

Trying to recover from significant financial setbacks on your own can be overwhelming, and in many cases, impossible. Don’t continue living with the stress and anxiety, there is help available. Bankruptcy is a common legal tool that is designed specifically to help people get through financial hardships. We have helped many people throughout Oklahoma with their consumer bankruptcies, and we want to help you too. Contact us to discuss your situation and see what the best path forward is for you.