Chapter 13 Bankruptcy is also known as personal reorganization, reorganization bankruptcy, or the wage earners plan. This form of bankruptcy is similar to Chapter 11 Bankruptcy, but specifically for individuals. Chapter 13 of the Bankruptcy Code enables individuals with regular income to repay their debts over a period of time. Individuals who want to keep their non-exempt income that would be lost under a Chapter 7 bankruptcy may prefer Chapter 13 for this reason.

Oklahoma Chapter 13 Bankruptcy Process

A Chapter 13 Bankruptcy entails consolidating all of your debt into one monthly payment. Chapter 13 Bankruptcy can help individuals restructure their tax debts, avoid foreclosures, and deal with out-of-control debt. Chapter 13 Bankruptcy is applicable when an individual’s income exceeds their monthly expenses. It allows a person with a regular monthly income to design a plan to repay all or part of their debt.

Oklahoma Chapter 13 Bankruptcy Plans

Chapter 13 payment plans are interest free and range from three to five years, based on your income and other circumstances. If your income is less than the state’s median, then your plan will last three years. If your income is more than the state’s median, your plan will last five years. During the span of your plan, creditors are forbidden to start or continue collection efforts.

Oklahoma Chapter 13 Advantages

Filing for Chapter 13 Bankruptcy has several advantages compared to filing for Chapter 7 Bankruptcy. Under Chapter 13 Bankruptcy, an individual is given the opportunity to save their homes from foreclosure. Chapter 13 Bankruptcy also allows individuals to reschedule payments to secured debts and extend the payback time over the life of their Chapter 13 payment plan, which can result in overall lower payments.

Oklahoma Bankruptcy Means Tests

Under the new Bankruptcy Code, effective for filings on and after October 17, 2005, more individuals filing for bankruptcy will have to choose Chapter 13's repayment plan. This is because of a complicated means test for Chapter 7 Bankruptcy filings, which has increased the requirements for Chapter 7 Bankruptcy.

Contact Tulsa Chapter 13 Bankruptcy Attorneys for a Free Consultation

Have these economic times have put you in an unmanageable financial situation? Are you facing foreclosure and want to save your home? Do you still have a regular source of income? If you’ve answered yes to any of these questions you might be a candidate for Chapter 13 Bankruptcy. Contact the knowledgeable Tulsa, Oklahoma Chapter 13 Bankruptcy attorneys at Swift & Watkins for a free consultation at (918).295.8282. We will review your unique financial situation and determine if bankruptcy is the best choice for you and your debt relief goals.