All law is complex, bankruptcy law is no exception; any errors in filing can seriously jeopardize the outcome. No court is tolerant of errors, what might appear to you as something quite insignificant can be the cause of having the case dismissed or the individual declaring bankruptcy to lose more than he or she otherwise would. Lawyers who provide bankruptcy services in Norman OK will not let these things happen, these lawyers will guide you through the process.
There are a couple of different ways that are commonly used by those declaring bankruptcy. The lawyer, who has many responsibilities throughout the process will explain the details and ramifications of Chapters 7 and 13 and suggest which might give the best relief under the circumstances.
Bankruptcy explained:
Rarely would anyone have any in-depth understanding of bankruptcy or the procedures that are necessary to follow when filing. Sure, people know that bankruptcy exists and it is something that has something to do with helping them to eliminate debt but they do not know the available options or the consequences of these options. A lawyer that provides a bankruptcy services in Norman OK may review the situation and suggest that arranging for debt settlement might be better than declaring bankruptcy.
Determine which bankruptcy is best:
For individuals and small business owners there are two different approaches to bankruptcy, Chapter 7 and Chapter 13. Both have unique benefits but as every set of circumstances are different, invariably one is better suited than the other.
Chapter 7 bankruptcy is straight bankruptcy and requires the liquidation of assets. The individual agrees to selling whatever assets that are available and splitting the proceeds from the sale amongst the creditors. Not all assets are included, the bankrupt’s home, car and personal effects are exempt. If, after the available assets are sold there is insufficient money to wipe out the total debt, the debt is repaid equally among the creditors and all debts are discharged. Declaring Chapter 7 is relatively quick and almost all unsecured debt can be eliminated.
Chapter 13 is known as debt adjustment bankruptcy; all debts are consolidation under court mandate. All the debts are totaled and then once a month the debtor pays an agreed amount to the court administrator, the administrator in turn makes payments to the creditors. Usually the court allows the debtor as long as five years to repay the debts. Once it is over all debts are considered as settled. People who have steady cash flow and significant assets will usually choose Chapter 13.
The Lawter Law Firm offer bankruptcy services in Norman OK. The firm is a debt relief agency that has been helping those in debt to file for bankruptcy for over 25 years.
