In Oklahoma, chapter 7 bankruptcy allows consumers to pay off their debts through the sale of their assets. As soon as the application for bankruptcy is approved, the consumer has an automatic stay and protection against lawsuits filed by creditors. A local attorney explains details about filing for chapter 7 bankruptcy in Oklahoma.
Evaluating All Assets and the Total Debt Value
The bankruptcy court evaluates all assets owned by the consumer. A total debt value is established and compared to the total value of all assets. If the consumer has enough assets to sell, the bankruptcy court approves their application for chapter 7 or the liquidation process.
Surrendering All Titles and Deeds
All titles and deeds are surrendered to the court prior to the beginning of the process. Consumers use the homestead exemption to protect their primary home. However, any vacation homes owned by the consumer aren’t protected from the bankruptcy court. The court determines what properties and assets are sold to pay off the total debt value.
The Liquidation Process
A trustee is assigned to the case by the bankruptcy court. All titles and deeds are provided to the trustee at the beginning of all sales. The trustee chooses how the properties and assets are sold. Select assets are sold through direct sales, such as real estate or automobiles. Some assets are sold through an auction. Methods are selected according to the projected proceeds in which the asset could generate. Consumers have no control over how or when their assets are sold.
What Consumers Can Expect After Bankruptcy
After the bankruptcy, the consumer is advised to follow credit rebuilder programs to restore their credit. However, the bankruptcy remains on their credit history for up to ten years. An attorney provides advice about how to avoid the mismanagement of debts in the future.
In Oklahoma, chapter 7 bankruptcy offers protection against lawsuits for up to six months. After the automatic stay is lifted, creditors regain the ability to file a lawsuit. However, consumers who to liquidation have a more effective opportunity for getting a clean slate and becoming debt-free. Consumers who want more information about filing for bankruptcy visit http://tulsabankruptcylawyers.net/bankruptcy-attorney-tulsa-chapter-7-bankruptcy/ right now.