Having a lawyer for legal representation during bankruptcy proceedings is not necessary, but it is advisable because the forms are complicated and court hearings are required. Errors on the forms can result in delays in the process. If the person is not sure whether chapter 7 or chapter 13 is more suitable, a firm such as South Tulsa Bankruptcy Lawyers can provide knowledgeable advice. Anyone who is seriously considering filing for bankruptcy may visit the website http://tulsabankruptcylawyers.net/ to get started.
Debts That Do Not Qualify
Many people don’t understand which debts can be discharged in a chapter 7 filing or included in a payment plan under chapter 13. Some debts are excluded by law and others require separate petitions. If a lien has already been placed by a creditor against a vehicle or other property, for example, the lawyer must file a motion to have that lien lifted. Student loans are almost never discharged in bankruptcy. Back child support and spousal support payments do not qualify.
Certain income tax debt might be discharged if it is several years old and the person is current on tax filings. However, as could be expected with government agencies, these entities have made the attempt to discharge tax debt very complicated and there are conditions the filer must comply with.
Bankruptcy attorneys can help clients discharge many other types of debt or develop a repayment plan for the creditors. Credit cards, payday loans and personal loans are the most common examples. If the debt is to be eliminated, the individual must pay as much of it back as possible by dissolving a certain amount of assets like real estate or savings accounts. States have exemptions to this process so the person is not left penniless.
With Chapter 13, the individual can avoid repossession of a financed vehicle or foreclosure of the home by making all scheduled payments under the arrangement. However, this can be difficult because the person must keep up with current payments in addition to the repayment plan. When someone files for bankruptcy, the budget usually is very tight and trying to hold onto these assets may not be feasible.