oklahoma city attorney bankruptcy

Bankruptcy and Credit Card Debt

There are countless tales of people who racked up a substantial amount of debt due to credit cards. These individuals often do not make enough money monthly to pay off this amount. Some people in this situation decide to pursue the option of bankruptcy. If you are debating filing for bankruptcy due to your mounting credit card debt, obtain the assistance of an experienced bankruptcy lawyer. When You can Not Pay Back Your Credit Card Debt In considering whether the bankruptcy process is right for you, one of the things that you should consider is whether you are able to pay off credit card debt. Many people who make enough money to pay off their credit cards find that they are not able to qualify for Chapter 7 bankruptcy. Instead, individuals in this situation who still want to declare bankruptcy are required to navigate Chapter 13 bankruptcy. If you are not able to pay back your credit card, rather than file for bankruptcy, you might be able to settle with the credit card company for a lower amount than what you owe. Other individuals decide to combine their debt onto one card to receive a lower interest rate and then     Read More

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Eliminating Mortgage Liens Through Bankruptcy

Some people are able to eliminate mortgage liens on their house during bankruptcy in a process referred to as “lien stripping.” It is important for people to know that lien stripping for most liens is only available through Chapter 13 and not Chapter 7 bankruptcy. To strip a lien, it is also required that the amount is not a first portion mortgage and that the value of the house is less than the payoff of the first mortgage. The Different Liens and Which Bankruptcy Chapters Apply There are three different types of liens that a person might want to strip, which include the following: Judicial liens arise from judgments in law suits. Statutory liens encompassed tax liens and property tax liens. Voluntary liens encompass deeds of trust, home equity lines of credit, and mortgages. The only liens that can be stripped through Chapter 7 bankruptcy are judicial liens. If a person files for Chapter 7 bankruptcy and wants to keep a house or other asset, he or she will be required to repay all loans secured by the house even if a loan is underwater. In Chapter 13 bankruptcy, every kind of lien can be reduced to the value of     Read More

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US Supreme Court Agrees to Hear Influential Bankruptcy Case

The Supreme Court of the United States recently agreed to determine the intent of Congress when the section of bankruptcy code was created that determines the discharge of debts associated with dishonest or fraudulent conduct. This case serves as a reminder of the many complicated areas in bankruptcy law. Given these complexities, many people are who are involved with bankruptcy cases have found that it is critical to the outcome of a case to obtain the assistance of a seasoned attorney. The Background of the Case The party that originated the class initiated the case against the owners of a business that the party had recently purchased. The party agreed to pay legal counsel on an hourly basis with fees due each month. As the case proceeded, however, the man became delinquent on his payments. These two parties met numerous times to discuss the matter of payment with the legal counsel even reducing the client’s payment despite continued legal representation. In June of 2006, the law firm alleges that the party received a tax refund payment and used this money to make an investment in his business instead of paying outstanding legal fees. When the payment was not made, the     Read More

Tips for Older Americans to Avoid Filing for Bankruptcy

Medical debt is currently the main cause of personal bankruptcy filings in the United States, and people who are 65 or older comprise approximately 8% of the individuals who file for bankruptcy. There are several reasons why this age group has high levels of medical debt including that the 2008 recession impacted this group significantly and wives who are most often outliving their husbands. Older individuals often also face predatory debt collectors. While bankruptcy is often an option for starting over financially, older clients also see bankruptcy as an opportunity to make themselves happy again. In addition to being complicated, filing for bankruptcy can be an embarrassing process for many older adults. This article will review some of the important tips that an older adult in Oklahoma can take to avoid filing for bankruptcy. Contact Your Creditors A person might be able to negotiate a repayment plan with creditors. As a result, it is often important to contact a supervisor at each company to which you owe money as soon as you notice debts. Providing detailed notes about who you spoke to and what time the conversation occurred can later help in various steps of the repayment process. Decide on     Read More

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Department of Justice Issues Cannabis Ruling

There have been some substantial changes in the last few years regarding how the state of Oklahoma treats the use of marijuana. For example, the Governor of Oklahoma has helped to make legal the use of some THC cannabis oil for the treatment of epilepsy. To be considered legal in the state of Oklahoma, the THC oil must be no more than .3% THC. Legislation in the state of Oklahoma also allows marijuana products that are supported by medical studies. With CBD oils legalized, the Governor of Oklahoma is also in the process of attempting to legalize marijuana. Despite the legalization of CBD oil in Oklahoma, marijuana is still prohibited at a federal level. As a result, the federal government still lists marijuana as a Schedule I drug. This clash represents just one of the many contradictions between how state and federal law treat marijuana. A recent decision made by the federal government has had a significant impact on the rights of some marijuana-based businesses in the state that declare bankruptcy. The Recent Bankruptcy Court Ruling In a recent ruling, the United States Department of Justice issued a statement to inform business owners that marijuana-based businesses are not able to     Read More

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Bankruptcy 101

Bankruptcy is a complicated area of law that is difficult for many to understand. Like any body of law, one of the most complicated factors is that it involves a unique group of keywords that are used by judges, lawyers, and individuals in the middle of the legal process. Anyone going through the bankruptcy process can benefit from understanding some of the essential terms used throughout the bankruptcy process. Important Bankruptcy Terms Some of the most important bankruptcy terms that should be known by individuals who are in the midst of the process include the following: Absolute Priority: When a person makes payments during the bankruptcy process, these amounts are distributed in accordance with the absolute priority, which is established in the federal bankruptcy code. Automatic Stay: An automatic stay refers to the block that is created when a person files for bankruptcy and prevents creditors from collecting on debts in any manner. Core Proceedings: There are many things that occur during the bankruptcy process, but core proceedings refer to steps that are decided on by the bankruptcy court. Dischargeable Debt: Debt that is eliminated when a person files for bankruptcy is considered to be dischargeable debt, while debt that     Read More

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The Difference Between Debt Consolidation and Bankruptcy

While many people are familiar with the bankruptcy process, debt consolidation is also a unique process. Debt consolidation involves combining debts into one, more manageable debt. Not only does debt consolidation simplify the repayment process for individuals, it also reduces monthly payment and interest rates. Many individuals confuse debt consolidation with debt settlement, which involves a person paying an amount lower than the total amount that is owed. Bankruptcy, however, follows a distinct process from debt consolidation. In Chapter 7 bankruptcy a person sells property to creditors to pay off debts, while in Chapter 13 bankruptcy a repayment or reorganization will be arranged with creditors. Deciding on bankruptcy or debt consolidation depends on a person’s financial goals. Advantages to Filing for Bankruptcy One of the largest advantages of filing bankruptcy is that it offers greater protection against creditors because an “automatic stay” is placed that prevents creditors from obtaining money. An automatic stay also prevents foreclosure, repossession, and shutting off utilities due to nonpayment. Bankruptcy also offers the advantage of clearing a person’s debts, which means that the process lifts financial difficulties from a person. After eliminating these debts, a person can then begin to rebuild their credit and move     Read More

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United States Supreme Court to Hear Bankruptcy Case

The Supreme Court of the United States is poised to hear a bankruptcy case in Merit Management Group LP v. FTI Consulting Inc. This case has the potential to resolve a current circuit split about a section in the Bankruptcy code that protects certain types of payments made to a financial institution. In accordance with this law, individuals are unable to avoid payments made in connection with a securities contract, settlement payments, or other payments that are made to commodity brokers, financial institutions, financial participants, forward contract merchants, or securities clearing agencies. The way in which this case is decided has the potential to clarify the parties that a person who declares bankruptcy is obligated to pay. History Leading up to the Case Prior to the Merit Management case, the Eleventh Circuit was the only circuit court to hold that a financial institution must be more than an intermediary for a person who declares bankruptcy to be forced to pay. Five other courts including the Second Circuit, the Third Circuit, the Sixth Circuit, the Eighth Circuit, and the Tenth Circuit have held that a person who declares bankruptcy must pay financial institutions that are intermediaries. The Merit Management case was     Read More