Chapter 7 under the Bankruptcy Code is a process known as a liquidation bankruptcy because the trustee in a Chapter 7 Bankruptcy can sell any non-exempt or unprotected assets and pay the money available to your creditors.
In a Chapter 7 Bankruptcy, most debts (with the exception of child support, alimony, certain taxes, and other non dischargeable debts) are eliminated, and the debtor generally loses only non-exempt property. Despite the term liquidation, in a Chapter 7 Bankruptcy, property is rarely liquidated, since most property is protected by exemption under Oklahoma State law. When an asset is exempt from legal process, a bankruptcy trustee cannot take the property. A Bankruptcy Court can relieve a debtor of the responsibility to pay most of his or her debts under Chapter 7 but still allow the debtor to keep much of his or her property.
The purpose for filing a Chapter 7 Bankruptcy is usually to discharge a debt, or to cancel some debtor obligations. A Chapter 7 petitioner does not have to make payments out of his or her future income to have their debts discharged. A Chapter 7 Bankruptcy asks the Bankruptcy Court to erase your dischargeable debts forever. It is important to understand that some debts cannot be discharged in a Chapter 7 Bankruptcy. A Chapter 7 bankruptcy is available to both individuals and businesses but there tends to be more individual Chapter 7 filings than those of businesses.
Each case is different and is particular to the individual facts and circumstances of that specific situation. It is important to seek experienced counsel to learn your legal options under the Bankruptcy Code. Chapter 7 may allow you to address your debt.
If you are overwhelmed by debt and in danger of losing your house, your car, or other property, and/or are tired of creditors’ harassment, contact us today at 1-405-691-2555. We can help!