What Consumers Need To Know About Chapter 13 Bankruptcy

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In Oklahoma, a bankruptcy case is among the most beneficial methods of settling debts. With chapter 13, the consumer and their attorney create a plan to repay their debts based on the consumer’s incoming earnings. The payment plan is extended up to five years and could present a more manageable option for the consumers.

What Upfront Costs Do Consumers Face in Bankruptcy?

The consumers are required under bankruptcy law to attend a credit counseling program. It must be state-approved and provide evidence of completion. It is possible for the consumer to complete the prerequisite without any costs.

Additionally, the consumer must pay a filing fee for the bankruptcy. The standard fee in Oklahoma is $281. All fees are paid when the consumer starts their bankruptcy claim.

Is Wage Garnishment Necessary in Chapter 13?

No, the consumer doesn’t have to agree to wage garnishment. However, consumers who allow the court to garnish their wages could pay few taxes. The garnishment is conducted for the pre-tax value of their wages. Income tax deductions are applied to the leftover balance of their wages during each pay period. By filing for chapter 13, the consumer protects their wages from wage garnishment initiated by a creditor.

How Can Bankruptcy Protect Consumers from Creditors?

The initial phase of bankruptcy provides the automatic stay that prevents foreclosure and repossession. However, the bankruptcy laws can prevent creditors from increasing the total value of a debt and attempting to collect excessive values. The tactics are fraudulent, and the laws stop the unlawful actions.

Can Creditors Seek Payment for Any Debts that were Discharged?

No, once the court discharges a debt, it is no longer the responsibility of the consumer. The creditor cannot file a legal claim against the consumer to collect any payments. All debt collection efforts must stop after the discharge of the debt.

In Oklahoma, a bankruptcy claim is the first step in becoming debt free. The cases are used to prevent legal action by creditors and to secure specific assets. Chapter 13 can last up to five years based on the plan selected by the claimant. Consumers who need more information about Affordable bankruptcy help can contact an attorney now.