What is Chapter 13 bankruptcy in Oklahoma?

by Dan Nunley

A chapter 13 bankruptcy is a powerful debt repayment plan that allows people with regular income to propose a plan to catch up on past due balances and repay all or part of their debts.

Chapter 13 bankruptcy can solve serious debt problems that a Chapter 7 bankruptcy doesn’t help with. For example, Chapter 13 bankruptcy is a great solution for:

  • stopping home foreclosures
  • preventing vehicle repossessions
  • alimony and child support arrearages
  • past due student loans
  • back taxes

A typical Chapter 13 bankruptcy repayment plan is 36 to 60 months long. During that time, you make a monthly payment to the Chapter 13 trustee who then divides that payment among your creditors according to the court-approved repayment plan.

The Chapter 13 plan payment is based on what you can afford to pay each month not on what your creditors want you to pay.

The Chapter 13 plan prioritizes your debts with your secured creditors getting paid first. Any remaining money is paid to your unsecured creditors in a pecking order established by the Bankruptcy Code.

And during the life of the Chapter 13 repayment plan, your creditors generally must stop all collection activity against you including phone calls, letters, law suits, wage garnishments and income tax refund intercepts.

If you’re struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact me today to schedule a FREE initial consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

{ 2 comments… read them below or add one }

Roxanne Cook July 15, 2009 at 6:16 pm

My home is in foreclosure. I hired a litigation team who has tried endlessly to work with my lender – to no avail. It appears the only option I have left is to file a motion to file Chapter 13. My lender refuses to work on a loan modification even tho I qualify. My auction is scheduled for July 21, so I need some answers ASAP.

Dan Nunley July 17, 2009 at 10:11 am

Roxanne,

Thank your for your comment. I have called you directly to discuss your situation.

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