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Bankruptcy
Personal Bankruptcy
If you are struggling financially with payment of credit card debt, medical bills, automobile loans, or your mortgage, you may be considering filing for bankruptcy. The law firm of Fuller, Chlouber & Frizzell, L.L.P. will analyze your eligibility for the different forms of debt relief available under the Bankruptcy Code and together we will determine which form of relief is most likely to be beneficial for you.
Your Bankruptcy Options
If you are considering bankruptcy, we can answer your specific questions concerning the different types of bankruptcies available, costs, what happens to your property, how to stop the foreclosure of your house or repossession of your car, law suits, creditor phone calls and the how bankruptcy may affect your credit. We can tell you what bankruptcy can and cannot do for you. Call to schedule an initial consultation to discuss your options.
Individuals who plan to file for Bankruptcy must complete a Pre-Bankruptcy Financial Counseling session before your case is filed. You will also need to complete a Pre-Discharge Debtor’s Education session before your bankruptcy case is completed in order to receive a discharge of your debts. We can assist you in obtaining these Debtor Education Courses required under the Bankruptcy Code.
Once you have decided to file your bankruptcy, you will need to identify all of your assets and your creditors. If you need assistance identifying all of your creditors, you may wish to obtain copies of your credit report from one or all three of the nationwide credit bureaus. To obtain a copy of your credit report(s) now, please contact:
Experian: (888) 397-3742
Equifax: (800) 683-1111
Trans Union: (800) 916-8800
Business Liquidation
The current economic condition has made it more and more difficult for businesses to keep up with their overhead and debts. Unfortunately for some, the debt is simply too much and the business is no longer able to stay afloat.
How Business Liquidation Works
In Chapter 7 bankruptcy, the bankruptcy court appoints a trustee to liquidate the business’s assets and distribute the proceeds to the business’s creditors. After the process is finished, the business ceases to exist and so do the debts of the business. If a business owner has personally guaranteed any of the business debts, or is otherwise obligated for the debts, they may need to file a personal bankruptcy in addition to the business bankruptcy.
Although Chapter 7 bankruptcy means the business has to close down, it does have certain advantages. For example, it announces the end of operation of the business and, therefore, the creditors will be stopped from undertaking collection efforts against the business.
Chapter 7 - Liquidation
Chapter 7 is the most common form of bankruptcy. It is a liquidation proceeding in which the debtor’s non-exempt property, if any, is sold by the Chapter 7 trustee and the proceeds are distributed to creditors according to priority.
As a general rule, certain property is exempt in a Chapter 7 personal bankruptcy proceeding. Some examples of exemptions in a case filed in Oklahoma are: equity in a vehicle of up to $7,500; equity in a primary residence that is your homestead; your qualified retirement benefits including but not limited to your 401K, pension, and IRA account; and various types of household goods and furnishings, clothing, tools of trade, etc.
In a Chapter 7, usually the largest portion of debt is unsecured debt, such as medical debts, credit card debts, and loans that are not secured by any tangible assets or property. Secured debts (such as house and car loans) are debts backed by property (collateral). A creditor whose debt is secured has a legal right to take your property in order to satisfy the secured debt through repossession, therefore, you will have to pay that debt back (or negotiate a lesser amount) in order to retain that property.
Upon filing Chapter 7 bankruptcy, creditors must stop collection efforts unless and until the creditor is allowed to proceed forward by the bankruptcy court through a relief from or lift of the automatic stay. Certain debt obligations, e.g. child support, are not affected by filing bankruptcy. Chapter 7 bankruptcy gives you the critical time you need to eliminate or renegotiate your debts. It’s wise to keep current on your loans and insurance if you want to retain your home and/or vehicle.
In a Chapter 7 bankruptcy, any wages the debtor earns after the case is filed are the debtor’s and creditors have no claim on those earnings. By wiping out most debt, many debtors are able to get back on their feet with a fresh start. If debtors have significant assets they wish to protect such as multiple houses, we often recommend Chapter 13 bankruptcy.
Chapter 13 - Payment Plan
Chapter 13 is for individuals who have regular income and would like to pay all or part of their debts in installments over a period of time and to discharge some debts that are not paid. You are eligible for Chapter 13 only if your debts are not more than certain dollar amounts set forth in 11 U.S.C. § 109. Business entities are not eligible for Chapter 13.
Under chapter 13, you must file with the court a Plan to repay your creditors all or part of the money that you owe them, usually using your future earnings. If the court approves your Plan, the court will allow you to repay your debts, as adjusted by the Plan, within 3 years or 5 years, depending on your income and other factors.
After you make all the payments under your Plan, many of the remaining debts are discharged.
It is important to note that some debts that are not discharged in bankruptcy and that you may still be responsible to pay the following:
• domestic support obligations,
• most student loans,
• certain taxes,
• debts for fraud or theft,
• debts for fraud or defalcation while acting in a fiduciary capacity,
• most criminal fines and restitution obligations,
• certain debts that are not listed in your bankruptcy papers,
• certain debts for acts that caused death or personal injury, and
• certain long-term secured debts.
Creditor’s Claims
Bankruptcy provides particular rights for both debtors and creditors. Once a debtor files a bankruptcy petition, an automation stay goes into effect and all collection efforts must stop. Creditors may not have direct contact with the debtor, but may communicate through the debtor’s attorney.
Creditor Representation in Oklahoma
At the Law Office of Fuller, Chlouber & Frizzell, L.L.P., we represent secured and unsecured creditors in consumer and business bankruptcy proceedings. We have extensive experience in local proceedings in bankruptcy courts, filing proofs of claim and negotiation of asset purchase agreements on behalf of potential buyers.
Our attorneys are prepared to assist you in reviewing schedules and information in a bankruptcy petition, allowing you to exercise your legal rights as a creditor and helping you maximize your claim recovery.
Creditor Bankruptcy Litigation
With extensive experience in all legal proceedings in bankruptcy courts, we handle the following types of creditor rights and litigation:
• Adversaries
• Stay motions
• Plan objections
• Valuation disputes
• Dismissal motions
• Dischargeability actions
• Claim preparation and filing of Proof of Claims
• Attending creditor meetings and other related hearings