Three Issues That Must be Accounted for Before Filing for Chapter 7 Bankruptcy

Filing for bankruptcy sometimes proves to be the best way to get back on track financially. When a person’s debts grow so large that keeping up with payments becomes impossible, Chapter 7 bankruptcy will sometimes be the best way forward. As a detailed article at http://tulsabankruptcylawyers.net/bankruptcy-attorney-tulsa-chapter-7-bankruptcy/ makes clear, though, qualifying for this form of legally afforded protection is not to be taken for granted.

Chapter 7 Bankruptcy Protection is Not Available to All

Being able to wipe out all of a person’s debts at a single stroke is a potentially powerful capability. As such, there are some fairly stringent requirements imposed on those who would like to file Chapter 7 bankruptcy themselves.

An attorney will normally be well positioned to help clients decide whether Chapter 7 bankruptcy will be available to them and whether it will be appropriate. Some of the issues that will need to be accounted for along the way are:

  • Time since last filing. The legal system is not designed to allow debtors to escape their obligations casually and easily. As such, individuals are only allowed to file for Chapter 7 bankruptcy after a significant amount of time since the last filing has elapsed. It will normally be necessary to wait at least eight years before seeking Chapter 7 bankruptcy protection again.
  • Residency. Although the rules governing bankruptcy nationwide are created and enforced by the federal government, particular filings take place in courts associated with each state. To file bankruptcy in Oklahoma, a debtor must have lived in the state for at least six months prior to filing.
  • Income level. There are other forms of bankruptcy protection available to those who are well off, but Chapter 7 is meant mostly for people of limited means. As such, only those who make less than the current median level of income in Oklahoma will normally be deemed eligible.

Plenty of Help is Available

Issues like these will need to be addressed just about anytime anyone in Oklahoma files for Chapter 7 bankruptcy protection. Having access to an attorney will make it much easier to answer all the related questions to the satisfaction of the court. In fact, debtors who do secure legal representation consistently prove more likely to obtain the protection they seek.

Post Author: aebi