Chapter 7 bankruptcy

Chapter 7 is sometimes called a fresh start bankruptcy because it usually is a short three to four month process where you discharge all your debts, keep all your property and get a fresh start on life.

Generally, the threshold for filing a Chapter 7 bankruptcy is having your income be below a certain level or meeting a means test. At your initial evaluation, Oklahoma City bankruptcy attorney Christi Giddeon will determine if you meet the income guidelines. If not, then she may recommend a means test be completed. The means test will look at your financial situation and determine whether you qualify for a Chapter 7 bankruptcy even though your income exceeds the current level allowed by the law.

A Chapter 7 bankruptcy eliminates all your unsecured debt. What is unsecured debt? Another way of thinking of unsecured debt is that if you stop paying this type of debt that your creditor cannot come and take anything such as happens with a home or car loan. There is no collateral.

A Chapter 7 bankruptcy is fairly quick. As said before, it may take only three to four months to complete the process. There are no payments to your creditors. Oklahoma has among the best bankruptcy exemptions in the United States. This means that you probably will get to keep all your assets.

One of the big misconceptions is that Chapter 7 bankruptcy harms your credit rating for up to 10 years. Oklahoma City bankruptcy attorney Christi Giddeon has found that most persons find themselves with better credit about one year after their bankruptcy than they have experienced in a very long time.