Consumer Bankruptcies

Since 1990, the Law Office of B. David Sisson has been helping individuals throughout the greater Oklahoma City Metro Area in all aspects of bankruptcy, including litigation and appeals.  We understand that the prospect of filing for bankruptcy can feel daunting and overwhelming, and are dedicated to helping you manage your debts and start over. 

The Bankruptcy Code is divided into chapters.  The chapters that usually apply to consumers are Chapter 7, where all or most of your debt is wiped out, and Chapter 13, which involves a repayment plan.

In most cases, once you file for bankruptcy, an Automatic Stay immediately goes into effect, bringing to a halt most lawsuits, repossessions, foreclosures, evictions, garnishments, attachments, utility shut-offs, and debt collection harassment.  Generally, creditors cannot take any further action against you or your property without permission from the Bankruptcy Court.  

Chapter 7 Bankruptcy

Chapter 7 is designed for people who are facing financial difficulties and are unable to re-pay their debts. 

Under the changes of the Bankruptcy Code, which took effect on October 17, 2005, you can qualify for Chapter 7 if your average gross monthly income for the last six months is below your state's Median Income, your gross income, less certain expenses, is below your state's Median Income, or you can demonstrate "special circumstances" that would allow you to qualify for Chapter 7. 

Under Chapter 7, you can usually exempt, or keep, most or all of your assets under Oklahoma law, such as retirement accounts and pensions.  Secured property, such as a car or house, may not have any net equity, allowing you to keep those as well.  The trustee liquidates most non-exempt property and uses the proceeds of the sale to pay creditors under the priorities established under the Bankruptcy Code. 

Once the Chapter 7 case is over, you receive a Discharge.  The discharge prevents your creditors from taking steps to collect their unsecured debt.  By law, these creditors cannot call you, write you, sue you, or take any steps that could be considered an attempt to collect on the debt.  Some debts cannot be discharged, such as some taxes, student loans, criminal restitution, child support, alimony, and other domestic support obligations, and debts for death or personal injury caused by operating vehicles while intoxicated.

Chapter 13 Bankruptcy

Chapter 13 is a valuable tool that allows you to catch up on overdue mortgage or car payments, taxes, and domestic support obligations.  It also applies where you have the ability to repay some or all of your debts over time.  You must have less than $336,900 in unsecured debt (such as credit cards and doctor's bills) and less than $1,010,350 in secured debt (such as mortgages and care loans) to qualify for Chapter 13.

Under Chapter 13, you can keep all of your property, both exempt and non-exempt property, as long as you resume making your regular payments on secured debt and keep current under the repayment plan that you propose.  A repayment plan can last for up to five years.  After finishing your payments, most of your unsecured debts are discharged.  

Bankruptcy laws are complex and constantly changing.  To determine which type of bankruptcy filing meets your needs and circumstances, you should consult a qualified bankruptcy lawyer.  For experienced representation, contact the Law Office of B. David Sisson today for a no obligation consultation.