Chapter 7 bankruptcy is what lawyers refer to as a “fresh start,” because the debtor is permitted to completely wipe out his/her debts and start fresh. Filing bankruptcy is a voluntary legal proceeding, brought by a debtor, that seeks relief provided for by a federal statute, the Bankruptcy Code 11 U.S.C. § 101-1532. In rare cases bankruptcies are filed involuntarily, 11 U.S.C. § 303. At Debt Solutions our primary focus is on voluntary bankruptcies, and the attorneys of Debt Solutions are here to help you take control over your financial future.
A bankruptcy case must be brought in the United States District Court, which has jurisdiction over all bankruptcy cases, but most cases are automatically referred to the Bankruptcy Court for the local district, a unit of the United States District Court. In Oklahoma, Oklahoman residents who meet the jurisdiction requirements, must file in either the Bankruptcy Courts in, the Western District of Oklahoma, the Northern District of Oklahoma or the Eastern District of Oklahoma.
In Chapter 7, the debtor's bankruptcy estate consists of both debts and assets. Assets which are non-exempt are liquated into the “bankruptcy estate” and are used to pay off debts. Whatever debts are leftover are then discharged. In many instances, debtors only possess exempt assets, so there is no need to liquidate assets. These types of cases are called a "No Asset" Chapter 7 Bankruptcy.
You may be asking what assets will you get to keep. This is controlled by state law. Fortunately, Oklahoma provides some of the greatest exemptions in the country for debtors. For instance, there is no cap on household furnishings in Oklahoma. The cap on exempt jewelry is considerably higher than other states. For a complete list of Oklahoma exemptions, please visit our Oklahoma Exemptions on our FAQ page.
Pre-Petition planning refers to planning before an individual or company files for bankruptcy protection. Pre-petition planning is the first stage of filing for bankruptcy protection and often a critical step. At Debt Solutions, our attorneys advise you on decisions about what property to keep, when to file bankruptcy, and which bankruptcy is appropriate for you. We will help protect your assets and belongings to the fullest extent possible under bankruptcy laws.
However, pre-petition planning should only be done under the advice of an attorney. Do not sell anything until you speak to a bankruptcy attorney. The most time-consuming part of the bankruptcy process is the collection of improper transfers by the Court appointed Trustee. Using an experienced attorney can help assure that no transfers take place, which will speed up the whole process and get your debts discharged quicker.