Chapter 7 Bankruptcy Questions

Chapter 7 bankruptcy is a legal means for people who are overwhelmed by debt to get a fresh start. The U.S. legislature created this opportunity to wipe the financial slate clean, to benefit both those struggling with debt and the economy as a whole. In a Chapter 7 bankruptcy case, the debtor can usually discharge, or eliminate the obligation to pay, most unsecured debt.

Common examples of unsecured debt include:

  • Credit card debt
  • Medical bills
  • Payday loans
  • Unsecured personal loans
  • Past-due rent and utilities

This type of debt can typically be eliminated even if the creditor has already filed a lawsuit, or has obtained a judgment and is garnishing your wages. In fact, in most cases, an order called the “automatic stay” stops garnishment, lawsuits, and other collection efforts as soon as the Chapter 7 bankruptcy case is filed.

Are there risks with Chapter 7?

Some people who are considering filing for Chapter 7 bankruptcy protection are uneasy about creditor claims. However, most Chapter 7 cases don’t involve any creditor objections.

Similarly, many people are concerned about losing property in Chapter 7, because they may have heard that the bankruptcy trustee can sell non-exempt property to make partial payment to creditors. Those fears are also usually unfounded. Most people who file for Chapter 7 bankruptcy don’t have any non-exempt property. Even when the debtor has some non-exempt property, the value is often low enough that it is not worthwhile for the trustee to pursue a sale.

An experienced bankruptcy attorney can assess the listed debts and assets and fully advise the potential Chapter 7 petitioner about any risks or downsides before the debtor makes a decision about filing.

Cost to file chapter 7 in Oklahoma

The chapter 7 filing fees in Oklahoma are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Oklahoma Bankruptcy Court Locations

While most debtors won’t have to go to court and instead will attend a 341 meeting of creditors, there are a few instances where you may have to step inside a courtroom. If so, Oklahoma has three bankruptcy court locations. They are:

U.S. Bankruptcy Court Western District of Oklahoma, 215 Dean A. McGee Ave., Suite 147, Oklahoma City, OK 73102, (405) 609-5700

United States Bankruptcy Court Northern District of Oklahoma, 224 S. Boulder Ave., Suite 105, Tulsa, OK 74103, (918) 699-4000

U.S. Bankruptcy Court Eastern District of Oklahoma, 111 W. Fourth St., 2nd Floor, Okmulgee, OK 74447, (918) 549-7200

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