A: In order to file for bankruptcy, you first need to follow a process prior to filing in order to make sure that you have everything in order in order to expedite the process and make it as painless as possible.
Bankruptcy Process in Oklahoma City and Surrounding Areas
Chapter 7 Bankruptcy
1. Mandatory Credit Counseling
You must take a mandatory bankruptcy education class prior to filing your case.
a. GO TO http://decafnow.com/?btx=95313
b. Take the “First Course” before filing. A certificate will be delivered to us.
c. After your case is filed and a case number has been issued, you must take the second course to be eligible for a discharge.
2. Get the Necessary Documents to Me:
e. A complete list of necessary documents can be found here: Bankruptcy Checklist
c. Obtain credit reports or have me pull all 3 bureaus for you for $38.00 per filer
d. Auto titles and purchase agreements to all vehicles in your name
e. Download and fill out the form found here: bankruptcy questionnaire
f. Email all of these documents to me at email@example.com
f. I require a non-refundable deposit of $300.00 to begin work on your case. The balance is due upon filing. Bankruptcy attorneys cannot accept any money from you after you file your case because that debt would be washed away like your other debts. For this reason, all the fees are required to be paid prior to filing your case. The only other option is for a credit-worthy friend or relative to guarantee the payback of the fees on your behalf. Any fees paid beyond the initial $300.00 will only be refunded if unearned; that is, fees that I have not earned by work already conducted on your case.
3. File Petition, Schedules, and Statement of Financial Affairs with the Court
I will analyze your financial situation and determine that, based on the means test, you qualify for filing a Chapter 7 Bankruptcy. You will come into my office and I will go over all your paperwork with you prior to signing to make sure that we have everything listed correctly and have included all of your creditors. I can have your papers ready for you to sign and get your case filed, usually, within 2 days of you providing me the needed materials.
4. Meeting of Creditors
This is an informal meeting giving your creditors the opportunity to ask you questions regarding your debts. While most creditors do not attend, this is also an opportunity for the Trustee to make sure that you have filled the paperwork out correctly listing all of your assets, all of your debts and all of your income. You will be under oath so you must be honest at this hearing. Actually, though, these meetings are usually very short and most people find that they are not as big of a deal as they thought it would be.
4. The “waiting period”
After the meeting of creditors, there will be a period of time (usually about 60 days) in which creditor may object to your discharge. This rarely happens in normal situations. Things that can cause debt, or even your case, to be denied is lying on your schedules or not divulging all of the relevant information about your debts, assets and/or income up front to me so they can be listed in your forms. Even if you think it’s not imortant please tell me so I can make that determination. I am here to help you make the best decision for you and your family but I can not do that unless you tell me everything there is to know about your finances.
5. Financial Management Course
This is a class similar to the one you had to take prior to filing bankruptcy. You can take it online and the cost ranges from $10.00 to $30.00 depending on the provider. In a Chapter 13 case you may also take a very informative class that satisfies this requirement for free on most Thursdays at the Bankruptcy Courthouse. You can actually take this class anytime after I send you your case number.
This is the carrot at the end of the process. Permanent debt destruction for all discharged debts.
7. Credit Rebuilding
I have many credit rebuilding programs that can get you back into all the advantages that having good credit can give you in a surprisingly short amount of time.
Chapter 13 Bankruptcy
The Chapter 13 process is very similar in all respects to a Ch. 7 prior to filing. The documents needed are generally the same. The key difference in Chapter 13 is that your case will contain what is called a “plan”. This is a budget of sorts that determines and tells the Trustee who is to be paid as well as when and how much they are to be paid. This plan must be accepted and approved by the Trustee as well as your creditors. However, really only the secured creditors having loans like car payments and mortgages have any voice in the process. The approval of your plan is called “plan confirmation” and usually happens within 3 months of filing your case. The unsecured creditors are paid what is determined to be your ability to pay them back as calculated by the means test. The means test is also the test used to determine whether you qualify for a Chapter 7 Bankruptcy and determines what your disposable income, if any, is.
Once the Chapter 13 case is filed, you will begin making the plan payment 30 days from that date. It is really impossible to determine what the plan payment might be without an in-office consultation. Email Me to schedule a free consultation.
The plan will be confirmed, usually, within 3 months of filing the case. You will continue making the payment for a period of 36 to 60 months. The length of time depends on a number of factors such as (1) how much time you may need to get current on an asset that you are wanting to keep (2) your income; basically, if you don’t qualify for a Chapter 7 based on results from the means test then you will have to be in a Chapter 13 plan for 60 months regardless unless you are paying back all of your creditors 100% and you pay them all off early. There are other factors that can affect this and I can explain them to you based on your particular situation.
After you complete the plan you will be eligible for a discharge! Call today (405) 255-2380 or Email Me to set up your free consultation.