There are different types of bankruptcy that can be declared by individuals, Chapter 7 is one of them. Chapter 7 bankruptcy in Norman OK demands that the individual filing must liquidate the bulk of their assets, the money from the disposal is used to pay off creditors. Once this step has been completed the bulk of the debts are discharged, the debtor is then free to start anew. The chapter 7 is commonly called “straight bankruptcy” and is used by most individuals; it is by far the most common form.
Once the individual realizes that they are not in a position to repay their debt and that bankruptcy is the only solution the first step is to engage the services of an attorney and file a number of support documents with the court. The individual must prove to the court that he or she is not in a position to reorganize their finances and repay debts; they must also provide a list of their assets at this time. If, upon review, the court agrees that debt reorganization is not possible they are granted the right to proceed with Chapter 7. A creditor meeting is set, the debtor and the creditors can meet to discuss what can be liquidated. It is expected that the creditors will agree to partial repayment although this is not necessarily so. If a creditor is of the opinion that the debt is related to some type of fraudulent activity they can refuse to settle. Certain debts, student loans, taxes, child support and the like must be paid and cannot be erased under Chapter 7.
The time frame for completion of chapter 7 bankruptcy in Norman OK is about four or five months. As the process is complex, often far too much so for a layperson to understand, an attorney is engaged. Regardless of whether the procedure is handled personally or with the assistance of an attorney there are certain assets ruled to be exempt which simply means they are not included in the assets to be sold. There are other assets that the creditors can declare as basically worthless; these too can be kept by the bankrupt. Once the list of non-exempt assets has been compiled, the court appointed trustee goes ahead and disposes of them, usually through public auction.
Part of the demand when filing for Chapter 7 bankruptcy is attendance at credit counseling classes, the counselors hope to help recent bankrupts rebuild their credibility over a period of years.
Chapter 7 bankruptcy in Norman OK helps people get a fresh financial start. If your debts are out of control you are invited to schedule a free consultation with the Lawter Law Firm.
