Chapter 13 Bankruptcy in Tulsa

Why do people in Tulsa file for Chapter 13 Bankruptcy?

The most common reason people in Tulsa, Oklahoma file for Chapter 13 bankruptcy is to save their home from foreclosure.

Here's How Chapter 13 Works

The moment you file a Chapter 13 Bankruptcy case in Tulsa, it automatically stops any pending foreclosure lawsuit that has been filed. This is called the Automatic Stay Injunction and goes into immediate effect the moment any bankruptcy case is filed in Tulsa.

After the Chapter 13 Bankruptcy is filed, your Tulsa Bankruptcy Attorney then files a Chapter 13 Plan outlining how you are going to cure the past due amounts on your mortgage over time.

You have up to 5 years to cure mortgage arrears in a Chapter 13 Bankruptcy case by making a monthly payment to the Chapter 13 bankruptcy Trustee, who then sends out your regular mortgage payment plus that month's portion of the past due amount. By the end of your plan, your mortgage is brought current and you receive a chapter 13 discharge.

What Happens to Your Other Debts?

If you have other debts, such as credit card debt or car loans, or even Judgments, your Chapter 13 plan will have to deal with those also. That does not mean you have to pay on those debts. It depends on whether they are secured debts (meaning collateral for the loan, like car loans) or unsecured debts (no collateral, like credit card or medical debts).

Secured Debts

How a secured debt is treated in your Chapter 13 Plan depends on whether you want to keep the collateral associated with that loan.

For example, if it is a car loan and you want to keep the car, you have to continue making payments on it through your Chapter 13 Plan.

If you don't want to keep the collateral or can't afford to keep it, you can surrender the collateral (car) in your case. Then, anything you owe becomes an unsecured debt once the creditor gets the collateral back. This is subject to specific rules regarding how much time the creditor has to sell the car and file an unsecured deficiency claim in your Chapter 13 bankruptcy case.

Unsecured Debts