Top 10 Oklahoma Bankruptcy Myths Discussed

There are several Oklahoma bankruptcy myths circulating regarding filing of chapter 7 and chapter 13 bankruptcy. Our bankruptcy attorneys law office in Wagoner are here to answer any questions you may have regarding. We invite you to contact our attorneys for a consultation. Read on to learn more about Oklahoma bankruptcy myths and your fresh start options.

Myth – Filing for bankruptcy will ruin your credit:

Filing for bankruptcy will ruin your credit. This is one of the most common Oklahoma bankruptcy myths. In fact, your credit can improve after filing for bankruptcy. Credit card companies continue to send you offers in the mail during and after your bankruptcy finalization. One reason for this is that once you file most if not all of your unsecured debt will have been forgiven those lowering your debt to income ratio. This reduced debt will enhance your credit worthiness.  We typically do not advise our clients to get a credit card, or take out any type of loans after filing for bankruptcy. If possible, try to pay for items with cash. Save your money and put at least half the value of the asset down prior to obtaining any new loans. This will help you pay off the debt in a timely manner.

Bankruptcy Myth – You will lose your home if you file for bankruptcy:

If you file for bankruptcy, it protects your home from the foreclosure process for a specified period of time. This will allow you to cure any mortgage arrears and prevent foreclosure. If you are current on your mortgage payment you will reaffirm the mortgage debt and continue to make payments Additionally, you may be eligible for a homestead exemption under Oklahoma State law. This can also protect your home in the event you file for bankruptcy. A chapter 13 bankruptcy repayment plan will also allow you to pay mortgage arrears over a period of time in order to keep your home.  Contact our bankruptcy attorneys Wagoner for more information on how to keep your home when filing for bankruptcy.

Oklahoma Bankruptcy Myth – Filing for bankruptcy means you are financially irresponsible:

The number one reason people file for bankruptcy in Wagoner Oklahoma  is because they’re unable to pay their medical bills. Other factors outside of a person’s control such as a job loss, divorce, or illness also factor into filing for bankruptcy. Bankruptcy courts protect individuals from financial despair. If you are struggling to make ends meet, contact us for a consultation. Most people who file bankruptcy are hardworking and honest people. People want to repay their debts, but unexpected situations arise which prevent them from doing so. The bankruptcy court is here to protect you.

Myth – You can’t get rid of back taxes through bankruptcy:

Federal, state, and inheritance taxes can reduce when you file bankruptcy. There are several qualifications you must meet in order to obtain relief. A rule of thumb for discharging back taxes is that the tax must be an income tax. This same income tax must be 4 years or older and all taxes have to have been filed on time since the past due tax.

Myth – You can only file once for bankruptcy protection:

Debtors can seek chapter 7 bankruptcy relief once every 8 years. Debtors can seek chapter 13 bankruptcy two years from the date in which their repayment plan concludes. It is uncommon for most people to file for chapter 7 or 13 bankruptcy multiple times. Several legal hurdles may arise when doing so. Contact our attorneys for a consultation if you are planning to file for bankruptcy a second or third time.

Myth – Filing for bankruptcy will eliminate all of your debts:

Filing for bankruptcy will eliminate some, but not all of your debts. Some debts are simply not dischargeable in bankruptcy. For example, domestic support obligations such as alimony and owed legal judgments cannot discharge through bankruptcy. An example of debts that are forgiven in an Oklahoma bankruptcy is credit card debt, repossessions, foreclosures, pay day loans and judgments. Additionally any garnishment will be stopped once we file your bankruptcy case.

 Hire Our  Bankruptcy Attorneys Wagoner Today:

If you are struggling to make ends meet, our bankruptcy attorneys in Wagoner can help you receive the debt relief you need. Contact us to schedule a consultation. We can provide you with legal advice and guidance on how to reduce your bills and eliminate your debt by filing for bankruptcy.