Commonly known as “the wage earner’s plan,” Chapter 13 bankruptcy in Norman, OK is a way of managing overwhelming debt by relying on regular income. It can be used to fully repay a debt over time or to repay a portion of the debt. The exact amount that must be repaid is decided upon between the creditor and the person who is in debt (the debtor). Chapter 13 bankruptcy in Norman, OK isn’t a “get out of debt free” card, but it is a way to make managing a large debt much easier.
Does Norman, OK Chapter 13 Bankruptcy Have Benefits?
As you may know, there are multiple methods for filing bankruptcy, and each of them offers different benefits to the debtor. For a single individual with a regular income, Chapter 13 is usually considered the best option. One of the major benefits it has over Chapter 7 is that it doesn’t require a complete liquidation of assets. The person’s home, vehicle, and other assets can be saved so long as the payments are made.
Chapter 13 is comparable to a large consolidation loan. This means the person repaying the debt deals with a single trustee for the lump sum rather than dealing with various creditors individually.
Who Is Eligible?
Almost everyone is eligible for Chapter 13 bankruptcy in Norman, OK. One of the few requirements is that their debt does not exceed a certain threshold. That threshold is usually around $395,000 for unsecured debts and $1,200,000 for secured debts. These numbers aren’t exact, so you’ll need to check local eligibility requirements to ensure you are below the current threshold.
Get Help When You Need It
Filing for bankruptcy may seem simple, but you are highly advised to seek the assistance of a professional attorney. They can ensure that you settle your debts for a fair amount with reasonable monthly payments. Rushing into Chapter 13 without professional assistance could make matters worse in the long run.
Lawter Law Firm operates in Norman, OK and handles a variety of bankruptcy cases. Their attorneys are highly trained and specialize in local laws relating to Chapter 7 and Chapter 13 bankruptcy. Their services may prevent garnishments, harassment, and foreclosures.
