Bankruptcy in Oklahoma is a legal procedure through which some of the debts of an individual or a business are discharged (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult process. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Oklahoma bankruptcy attorney can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your particular case.
Types of Bankruptcy in Oklahoma
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Oklahoma will be the same as anywhere else in the United States. There are 2 basic types of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy usually used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
In Oklahoma, Chapter 7 bankruptcy is referred to as "liquidation." The court will conduct an accounting of all of the debtor's assets, and determine which ones should be sold to help pay off the debts. Many classes of property, such as homes and cars, are exempt from this requirement, and therefore don't have to be sold. Once all of the eligible property is sold off, and the proceeds given to the creditors, the rest of the debt is discharged. When Chapter 13 bankrutpcy is filed, the debt is reorganized instead of discharged. Essentially, the court, the debtor, and the creditors will work out a repayment plan that the debtor can manage, and will result in most of the debt being paid off, hopefully in a reasonable period of time.
Chapter 11 bankruptcy is usually used by businesses. It also involves reorganization of debts, similar to chapter 13 bankruptcy. It requires the debtor company to come up with a reorganization plan, which its creditors must vote on for approval. If it is approved, the company will then be legally obliged to carry it out.
How Can a Oklahoma Bankruptcy Lawyer Help?
Filing for bankruptcy can be a life-changing decision. Depending on the circumstances, it can change your life for the better, or worse. An Oklahoma bankruptcy attorney can help you figure out if bankruptcy is a viable option for your individual situation.
Interesting Facts About Oklahoma
Oklahoma is called the "Sooner state" and is one of the main producers of oil and natural gas in the U.S. Ohio's economy is one of the fastest growing in the nation and is supported by other major industries like energy and telecommunications. Oklahoma achieved statehood relatively late, being the 46th state to join to Union.
Oklahoma's legal court system is formed by the District Courts, appeals courts, and the Oklahoma Supreme Court. The state has a total of 77 District Courts. Oklahoma's appeal system is different from other states as there are two branches for appeals: the Court of Criminal Appeals and the Court of Civil Appeals. Oklahoma also maintains an Administrative Office of the Courts, which provides the courts with administrative services. There are a total of 39 Native American tribal governments in Oklahoma.
Oklahoma's legal profession benefits from the presence of major law schools in the state. Some of these include the law schools at Oklahoma City University, The University of Oklahoma, and the University of Tulsa. Oklahoma law schools train future lawyers in the particulars of Oklahoma law. Oklahoma is famous for court cases involving civil rights like the McLaurin case (1950), which laid the foundation for cases like Brown v. Board of Education.
Lawyers in Oklahoma are equipped to handle a wide range of legal claims and inquiries. Oklahoma lawyers have experience in dealing with the types of disputes that are unique to the state. Also, an Oklahoma attorney can provide advice on different legal matters.