Bankruptcy Law New Oklahoma

Admin | December 10, 2011 | Comments Off

Bankruptcy Law New Oklahoma

Bankruptcy Law New Oklahoma

The Bankruptcy Abuse Prevention and Consumer Protection Act became law in 2005. The objective of this legislation was to prevent what was seen as widespread abuse and teach people to more effectively manage their personal finances. Although filing for bankruptcy is now more difficult, the bankruptcy law changes haven't led to a reduction in how many people file. In the 12 months ending 31 March 2010, a total of 1,057,686 filed chapter 7. Of course, the growth has more to do with the state of the global economy than legislative changes.

Considerations Before Filing for Bankruptcy

  • Before bankruptcy can be pursued, he or she shouldn't have filed in the previous 8 years. This is not permitted under the new chapter 7 bankruptcy laws.
  • The filer's income must be below the state median. A qualified bankruptcy attorney may be able to legally reduce his income to help to qualify. There are also several different rules, but they are complex and only very low earners will be able to comply.
  • Although the filer is entitled to keep most possessions, any non-exempt assets will need to be handed to a court-appointed trustee in order that they can be sold. These include, but aren't limited to, a luxury car, jewellery, art work or a second home.

Filing Chapter 13 and the New Bankruptcy Laws

If unable to comply with the bankruptcy law changes, it will be necessary to file chapter 13 bankruptcy. This involves making a monthly payment to creditors for a 3 or 5 year period. None of the above rules apply and it will be possible to restructure the repayment of non-eligible debts, such as child support, home mortgages, car loans and federal taxes. The debtor will be afforded the same court protection from creditors as they'd receive from filing chapter 7 bankruptcy.