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How Long Does Chapter 13 Bankruptcy Last in Oklahoma?

Tue, 12 May 2026 19:00:00 GMT

How Long Does Chapter 13 Bankruptcy Last in Oklahoma?

If you are considering Chapter 13 bankruptcy , one of the first questions you may have is: How long will this process last? Unlike Chapter 7, which typically concludes within a few months, Chapter 13 involves a structured repayment plan that spans several years.

At the Law Offices of B. David Sisson , we help individuals and families throughout Norman and across Oklahoma understand exactly what to expect before filing. Below is a clear explanation of how long Chapter 13 bankruptcy lasts and what factors may affect your timeline.

The Standard Length of Chapter 13 in Oklahoma

In most cases, Chapter 13 bankruptcy lasts three to five years .

The exact length depends primarily on your income:

Three-Year Plan (36 months): If your household income is below the Oklahoma median income, your repayment plan typically lasts three years.
Five-Year Plan (60 months): If your income is above the state median, the court usually requires a five-year repayment plan.

Federal law sets the maximum plan length at five years. A Chapter 13 plan cannot extend beyond 60 months.

Why Chapter 13 Lasts Several Years

Chapter 13 is designed to help individuals:

Catch up on missed mortgage payments
Prevent foreclosure
Stop car repossession
Repay tax debt over time
Consolidate unsecured debts into manageable payments

Rather than eliminating debts immediately, Chapter 13 allows you to reorganize them into one structured monthly payment supervised by the bankruptcy trustee.

At the Law Offices of B. David Sisson, we work closely with clients to develop a repayment plan that is realistic, sustainable, and compliant with Oklahoma bankruptcy court requirements.

What Happens During the Repayment Period?

Once your Chapter 13 case is filed and your plan is confirmed by the court, you will begin making monthly payments to the trustee.

During this period:

The automatic stay remains in effect, preventing most collection actions
Foreclosure proceedings are paused (as long as plan payments are made)
Creditors must follow the court-approved repayment structure
You continue making regular mortgage or car payments if required

Consistent, on-time payments are essential to successfully completing your plan.

Can Chapter 13 End Early?

In some situations, it may be possible to complete a Chapter 13 case early. However, early payoff typically requires paying all allowed claims in full, including unsecured debts.

Whether early completion is possible depends on:

The amount of unsecured debt
Your income level
Court approval

The Law Offices of B. David Sisson can review your repayment plan to determine whether early payoff is an option in your case.

What If I Miss a Payment?

Missing payments can put your Chapter 13 case at risk. If payments fall behind, the trustee may request dismissal of your case.

However, options may be available, including:

Plan modification
Temporary payment adjustments
Conversion to Chapter 7 in certain circumstances

If financial circumstances change during your repayment period, it is critical to contact your attorney immediately. Our office works with clients throughout Oklahoma to address unexpected changes before they jeopardize the case.

When Is the Bankruptcy Discharge Granted?

After successfully completing your three- to five-year repayment plan, the court will issue a discharge order .

This discharge eliminates qualifying remaining unsecured debts, which may include:

Credit card balances
Medical bills
Personal loans

For many individuals, this marks the completion of a long but structured path toward financial stability.

How Long Does Chapter 13 Stay on Your Credit Report?

A Chapter 13 bankruptcy typically remains on your credit report for seven years from the filing date .

However, many individuals begin rebuilding their credit during the repayment period by:

Making on-time plan payments
Keeping current on secured debts
Maintaining responsible financial habits

At the Law Offices of B. David Sisson, we help clients understand not only the legal process but also how to move forward after bankruptcy.

Is Chapter 13 Worth the Time Commitment?

For many Oklahoma residents, the structured timeline of Chapter 13 provides significant benefits, including:

Saving a home from foreclosure
Catching up on missed mortgage payments
Protecting valuable assets
Consolidating debt into one manageable payment

While three to five years may sound lengthy, it can provide long-term financial stability and prevent more serious consequences like foreclosure or repossession.

The right choice depends on your financial situation, income, and goals. A consultation with a Chapter 13 bankruptcy attorney can help you determine whether this option is appropriate.

Why Work with a Chapter 13 Bankruptcy Attorney in Norman?

Chapter 13 bankruptcy involves detailed financial disclosures, court approval of your repayment plan, and ongoing compliance with trustee requirements. Mistakes can delay your case or lead to dismissal.

At the Law Offices of B. David Sisson , we assist clients throughout Norman and surrounding Oklahoma communities with:

Determining eligibility under Chapter 13 debt limits
Calculating manageable repayment plans
Filing accurate documentation
Navigating court confirmation hearings
Addressing payment issues during the plan

Our goal is to help you move through the process with clarity and confidence.

Speak With a Chapter 13 Bankruptcy Attorney Today

If you are behind on mortgage payments, facing foreclosure, struggling with car payments, or overwhelmed by debt, Chapter 13 bankruptcy may provide the structured relief you need.

To learn how long Chapter 13 would last in your specific situation, contact the Law Offices of B. David Sisson today. Call 405-977-3201 to schedule a consultation and take the first step toward regaining financial control.

What Debts Are Discharged in Chapter 7 Bankruptcy in Oklahoma?

Tue, 14 Apr 2026 18:00:08 GMT

What Debts Are Discharged in Chapter 7 Bankruptcy in Oklahoma?

If you’re considering Chapter 7 bankruptcy , one of the most important questions you may have is: Which debts will actually go away? Understanding what can and cannot be discharged helps you determine whether filing is the right solution for your financial situation.

At the Law Offices of B. David Sisson , we help individuals and families throughout Norman and across Oklahoma evaluate their debt and determine how Chapter 7 bankruptcy may provide meaningful relief. Below, we break down which debts are typically discharged — and which ones are not.

What Does “Discharged” Mean in Bankruptcy?

A discharge is a court order that permanently eliminates your legal obligation to pay certain debts. Once a debt is discharged:

Creditors can no longer attempt to collect it
Collection calls and letters must stop
Lawsuits related to that debt are prohibited
Wage garnishments tied to discharged debts cannot continue

In most Oklahoma Chapter 7 cases, discharge occurs approximately 3–4 months after filing, provided all requirements are met.

Debts Commonly Discharged in Chapter 7 Bankruptcy

Chapter 7 is designed to eliminate unsecured debts , meaning debts not backed by collateral such as a home or vehicle. Below are the most common debts that may be discharged.

1. Credit Card Debt

Credit card balances are among the most frequently discharged debts in Chapter 7 bankruptcy. This includes:

Major credit cards
Store credit cards
Gas cards
Over-limit fees
Late fees and interest

For many Oklahoma residents, credit card debt is the primary reason they consider filing. Eliminating these balances can significantly improve financial stability.

2. Medical Bills

Medical debt is one of the leading causes of bankruptcy filings nationwide. Chapter 7 typically discharges:

Hospital bills
Emergency room charges
Surgery expenses
Physician bills
Medical collection accounts

At the Law Offices of B. David Sisson, we often assist clients who are facing overwhelming medical expenses due to unexpected illness or injury.

3. Personal Loans

Unsecured personal loans from:

Banks
Credit unions
Online lenders
Family or friends (with documentation)

are generally dischargeable in Chapter 7 bankruptcy.

If you’ve taken out loans to consolidate debt or cover living expenses, those balances may be eliminated.

4. Payday Loans

Many individuals in Oklahoma turn to payday loans during financial hardship. Unfortunately, high interest rates can make repayment nearly impossible.

In most cases, payday loans are dischargeable under Chapter 7.

5. Utility Bills

Past-due utility balances, including:

Electric bills
Gas bills
Water bills
Internet or cable bills

may be discharged. However, utility providers may require a deposit to continue service after filing.

6. Lease Obligations and Deficiency Balances

If you broke a lease or surrendered a vehicle and still owe a balance, those deficiency amounts are often dischargeable.

For example:

Repossession balances after a car is sold
Apartment lease termination fees
Rental property judgments

The Law Offices of B. David Sisson carefully reviews these situations to determine how Chapter 7 applies to your case.

7. Certain Civil Judgments

If a creditor sued you and obtained a judgment for unpaid debt, that judgment is often dischargeable — provided it is not based on fraud or intentional misconduct.

This can include:

Credit card judgments
Collection lawsuits
Personal loan judgments

Stopping these collection actions is one of the major benefits of filing Chapter 7 bankruptcy in Oklahoma.

Debts That Are Generally NOT Discharged

While Chapter 7 eliminates many types of unsecured debt, some obligations typically survive bankruptcy.

1. Child Support and Alimony

Domestic support obligations such as:

Child support
Spousal support (alimony)

are not dischargeable. Bankruptcy does not eliminate these responsibilities.

2. Most Student Loans

Student loans are rarely discharged in Chapter 7 bankruptcy unless you can prove undue hardship through a separate legal proceeding.

This is a complex area of bankruptcy law, and the Law Offices of B. David Sisson can evaluate whether your situation qualifies for further review.

3. Recent Tax Debt

Some tax obligations may remain after bankruptcy, particularly:

Recent income taxes
Payroll taxes
Fraud-related tax penalties

However, older income tax debt may qualify for discharge under certain conditions. A detailed review of your tax history is essential.

4. Court Fines and Criminal Restitution

Criminal fines, restitution, and certain court-imposed penalties are not dischargeable.

5. Debts Incurred Through Fraud

If a creditor proves that a debt was obtained through fraud or false representation, it may not be discharged.

This is one reason accuracy and honesty in your bankruptcy filing are critical.

What About Secured Debts?

Secured debts, such as:

Mortgages
Car loans

are treated differently.

Chapter 7 does not automatically eliminate the lien on secured property. However, you may:

Continue payments and keep the property
Surrender the property and discharge the remaining balance
Reaffirm the loan under certain conditions

Understanding your options requires careful planning with a knowledgeable bankruptcy attorney in Norman.

How to Know What Will Be Discharged in Your Case

Every financial situation is different. Factors that affect discharge include:

The type of debt
The age of the debt
Whether fraud is alleged
Court rulings
Tax history
Documentation accuracy

At the Law Offices of B. David Sisson , we conduct a thorough review of your debts before filing to ensure you understand:

What will likely be discharged
What may remain
Whether Chapter 7 is your best option
Whether Chapter 13 should be considered instead

Proper evaluation before filing can prevent surprises later.

When Does the Discharge Happen?

In most Oklahoma Chapter 7 cases:

The 341 Meeting occurs about 30–45 days after filing
Creditors have 60 days to object
Discharge is typically entered 60–90 days after the 341 meeting

Once the discharge order is entered, eligible debts are permanently eliminated.

This is often the moment clients feel a true financial reset.

Why Work with a Chapter 7 Bankruptcy Attorney in Norman?

Although bankruptcy laws are federal, Oklahoma exemption rules and court procedures can significantly affect your case.

Filing without proper legal guidance can result in:

Mistakes in paperwork
Missed exemptions
Delayed discharge
Creditor objections

The Law Offices of B. David Sisson helps Oklahoma residents navigate the Chapter 7 process with clarity and careful preparation. Our goal is to protect your assets while maximizing the debt relief available under the law.

Find Out What Debt You Can Eliminate

If you are overwhelmed by credit card debt, medical bills, personal loans, or collection lawsuits, Chapter 7 bankruptcy may offer a path forward.

The best way to determine what can be discharged in your specific case is through a confidential consultation.

Contact the Law Offices of B. David Sisson today at 405-977-3201 to discuss your options and take the first step toward financial relief.

What Happens After Filing Chapter 7 Bankruptcy in Oklahoma?

Tue, 17 Mar 2026 17:30:01 GMT

What Happens After Filing Chapter 7 Bankruptcy in Oklahoma?

Filing for Chapter 7 bankruptcy can feel like a huge weight has been lifted — but many people in Oklahoma still wonder what comes next. If you’re considering filing or have recently filed, understanding the process can help you feel more confident and prepared.

At Law Offices of B. David Sisson , we guide individuals and families throughout Norman and across Oklahoma through every stage of the Chapter 7 process. Here’s what you can expect after your bankruptcy case is filed.

1. The Automatic Stay Goes Into Effect Immediately

One of the most powerful protections in Chapter 7 bankruptcy is the automatic stay .

As soon as your case is filed with the bankruptcy court:

Collection calls must stop
Wage garnishments must stop
Lawsuits are paused
Foreclosure proceedings are temporarily halted
Creditor harassment must cease

For many Oklahoma residents, this is the first real relief they’ve felt in months — or even years.

If creditors continue contacting you after filing, the team at Law Offices of B. David Sisson can step in to enforce your rights.

2. A Bankruptcy Trustee Is Assigned

Shortly after filing, the court appoints a Chapter 7 trustee to oversee your case.

The trustee’s role includes:

Reviewing your bankruptcy paperwork
Verifying your assets and debts
Determining whether any non-exempt property can be sold to repay creditors

In most Oklahoma Chapter 7 cases, individuals are able to keep the majority — or all — of their property due to Oklahoma’s bankruptcy exemptions.

Working with a knowledgeable Chapter 7 bankruptcy attorney in Norman helps ensure your exemptions are properly applied so you can protect your home, vehicle, and personal belongings whenever possible.

3. The 341 Meeting of Creditors

Approximately 30–45 days after filing, you’ll attend what’s called a 341 Meeting of Creditors . Despite the name, creditors rarely attend.

During this short meeting:

You’ll answer questions under oath
The trustee confirms your identity
The trustee reviews your financial information
You may clarify details about income, property, or debts

Most meetings last only 5–10 minutes.

If you hire Law Offices of B. David Sisson , you won’t attend this meeting alone. Having legal guidance helps ensure you’re prepared and comfortable throughout the process.

4. Determining What Property You Keep

A common concern is: “Will I lose everything?”

In Oklahoma, most Chapter 7 filers keep:

Their primary residence (within exemption limits)
One vehicle
Retirement accounts
Household goods
Clothing
Tools of the trade

Oklahoma has favorable exemption laws compared to many states, which makes Chapter 7 particularly attractive for qualifying individuals.

If there is non-exempt property, the trustee may sell it to repay creditors. However, many cases are classified as “no-asset” cases, meaning nothing is sold.

Proper planning with a Norman Chapter 7 attorney can make a significant difference in protecting your assets.

5. Completing the Second Credit Counseling Course

After filing, you must complete a Debtor Education Course (also called a financial management course). This is different from the credit counseling course you completed before filing. Once finished, you’ll receive a certificate that must be filed with the court. Without it, your discharge may be delayed.

The Law Offices of B. David Sisson will guide you through this requirement and ensure all paperwork is properly submitted.

6. Objection Period (Rare but Important)

Creditors have a limited period (typically 60 days after the 341 meeting) to object to:

The discharge of a specific debt
The overall bankruptcy discharge

Objections are uncommon in most consumer Chapter 7 cases — especially when filings are accurate and complete.

This is another reason working with an experienced bankruptcy lawyer in Oklahoma is so important. Proper preparation helps avoid unnecessary complications.

7. Receiving Your Bankruptcy Discharge

In most Oklahoma Chapter 7 cases, you’ll receive your discharge order about 60–90 days after the 341 meeting .

This court order permanently eliminates qualifying unsecured debts such as:

Credit card debt
Medical bills
Personal loans
Certain judgments
Utility bills

Once discharged, creditors can no longer legally attempt to collect these debts.

This is the moment many clients describe as a true fresh start.

8. What Debts Are Not Discharged?

While Chapter 7 eliminates many types of debt, some obligations typically remain:

Most student loans
Recent tax debt
Child support and alimony
Certain court fines
Debts obtained through fraud

During your consultation, Law Offices of B. David Sisson will review your specific financial situation and explain exactly what can and cannot be discharged in your case.

9. Rebuilding After Chapter 7 Bankruptcy

After discharge, many clients are surprised at how quickly they can begin rebuilding credit.

Here’s what typically happens:

Your debt-to-income ratio improves
Credit card balances show as zero (if discharged)
You may begin receiving secured credit card offers
Some lenders offer post-bankruptcy auto loans

While Chapter 7 stays on your credit report for up to 10 years, many individuals begin seeing credit improvements within 12–24 months.

The key is responsible financial habits moving forward — and starting with a clean slate makes that much easier.

10. How Long Does the Entire Process Take in Oklahoma?

Most Chapter 7 cases in Oklahoma take approximately 4–6 months from filing to discharge .

The timeline can vary depending on:

Court scheduling
Trustee review
Completion of required courses
Any complications or objections

Working with a Norman bankruptcy attorney helps keep your case on track and minimizes delays.

Why Hiring a Chapter 7 Bankruptcy Attorney in Norman Matters

Although bankruptcy laws are federal, Oklahoma exemption rules and local court procedures can impact your case.

Filing incorrectly can result in:

Loss of property
Dismissed cases
Delayed discharge
Creditor challenges

At Law Offices of B. David Sisson , we help Oklahoma residents:

Determine qualification under the Chapter 7 means test
Protect assets using Oklahoma exemptions
Prepare accurate filings
Navigate the 341 meeting
Secure a timely discharge

When you’re facing overwhelming debt, having clear legal guidance makes the process far less stressful.

Take the First Step Toward Financial Relief

If you’re struggling with debt in Norman or anywhere in Oklahoma, you don’t have to face it alone.

A Chapter 7 bankruptcy filing can stop collection calls, eliminate qualifying debts, and provide a real opportunity for a financial reset.

Contact Law Offices of B. David Sisson today to schedule a consultation and discuss your options.

Call 405-977-3201 to speak with a bankruptcy attorney and take the first step toward relief.

How to Stop Foreclosure in Oklahoma and Protect Your Home

Tue, 17 Feb 2026 17:00:02 GMT

How to Stop Foreclosure in Oklahoma and Protect Your Home

Facing foreclosure can be one of the most stressful experiences a homeowner can go through. Missed mortgage payments, aggressive collection calls, and legal notices can quickly make it feel like losing your home is inevitable. The good news is that foreclosure is not always the end of the road . In many cases, homeowners in Oklahoma have legal options to stop foreclosure and protect their home.

With the right legal strategy and timely action, it may be possible to pause, delay, or even prevent foreclosure altogether.

Understanding Foreclosure in Oklahoma

Foreclosure typically begins after a homeowner falls behind on mortgage payments. Lenders must follow specific legal procedures before taking possession of a home. If those procedures are not followed correctly, foreclosure may be challenged or delayed.

Foreclosure cases can move quickly, which is why early legal intervention is critical. The sooner you understand your options, the more tools may be available to protect your home.

How Bankruptcy Can Stop Foreclosure

One of the most effective ways to stop foreclosure in Oklahoma is through bankruptcy . When a bankruptcy case is filed, the court issues an automatic stay that immediately stops most collection actions, including foreclosure proceedings.

Depending on your financial situation, different bankruptcy options may apply:

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is often the most effective option for homeowners who want to keep their home. It allows you to:

Stop foreclosure immediately
Catch up on missed mortgage payments over time
Resume regular monthly payments
Protect your home through a court-approved repayment plan

Chapter 13 is especially helpful if you have fallen behind but now have steady income.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy can temporarily stop foreclosure and may help eliminate other debts that are contributing to financial hardship. While it does not provide a long-term solution for catching up on mortgage payments, it can offer short-term relief and time to explore alternatives.

A foreclosure defense attorney can help determine which option is best for your situation.

Foreclosure Defense Options Beyond Bankruptcy

Bankruptcy is not the only way to stop foreclosure. Other legal defenses may apply depending on your circumstances.

Improper Foreclosure Procedures

Oklahoma law requires lenders to follow strict rules when foreclosing on a property. If required notices were not sent, deadlines were missed, or procedures were not followed correctly, foreclosure may be challenged.

Unfair or Unconscionable Loan Terms

In some cases, mortgages contain excessively harsh or unfair terms. If a loan can be shown to be unconscionable, courts may intervene and require new terms or halt the foreclosure process.

Protections for Active-Duty Service Members

Active-duty service members may have additional protections under the Service Members Civil Relief Act (SCRA) . These protections can delay or stop foreclosure in certain situations and provide important legal safeguards.

Why Timing Matters in Foreclosure Defense

Foreclosure defense strategies often depend on where you are in the foreclosure process . Options may differ if you are:

In early stages and have not yet been sued
Facing an active foreclosure lawsuit
Approaching a foreclosure sale

Acting early gives you more leverage and more potential solutions. Waiting too long can limit your options.

How a Foreclosure Defense Attorney Can Help

Foreclosure law is complex, and lenders are represented by experienced legal teams. Working with a foreclosure defense attorney can help:

Evaluate your mortgage and foreclosure status
Identify legal defenses and procedural errors
Determine whether bankruptcy is the right solution
Negotiate with lenders when appropriate
Protect your rights at every stage of the process

You do not have to navigate this process alone.

Foreclosure Defense Attorney in Norman, Oklahoma

Law Offices of B. David Sisson helps homeowners in Norman and throughout Oklahoma fight foreclosure and protect their homes. He takes the time to understand each client’s situation and develop a strategy designed to achieve the best possible outcome.

Can Chapter 13 Bankruptcy Stop Foreclosure and Repossession?

Tue, 20 Jan 2026 17:00:04 GMT

Can Chapter 13 Bankruptcy Stop Foreclosure and Repossession?

If you are behind on your mortgage or car payments, foreclosure or repossession can feel imminent and overwhelming. The good news is that Chapter 13 bankruptcy can be a powerful legal tool to stop foreclosure and repossession while giving you time to catch up on missed payments.

For many individuals and families in Norman and throughout Oklahoma, Chapter 13 bankruptcy provides a structured, court-approved solution to regain financial stability and protect essential assets.

How Chapter 13 Bankruptcy Stops Creditor Actions

When you file for Chapter 13 bankruptcy, the court immediately issues an automatic stay . This legal protection requires creditors to stop most collection actions, including:

Foreclosure proceedings
Vehicle repossessions
Wage garnishments
Lawsuits and collection calls

The automatic stay goes into effect as soon as your case is filed, providing immediate relief and breathing room.

Stopping Foreclosure With Chapter 13 Bankruptcy

Chapter 13 bankruptcy is especially effective for homeowners who have fallen behind on mortgage payments but want to keep their home.

Through Chapter 13, you may be able to:

Stop an active foreclosure
Catch up on missed mortgage payments over time
Resume regular monthly payments going forward
Protect your home while completing a repayment plan

Missed mortgage payments are rolled into a repayment plan that typically lasts three to five years, allowing you to get current without needing to pay everything at once.

Preventing Vehicle Repossession

Chapter 13 bankruptcy can also stop vehicle repossession if you are behind on car payments. Once the case is filed, repossession efforts must pause.

Depending on your situation, Chapter 13 may allow you to:

Catch up on past-due car payments
Resume regular monthly payments
Protect your vehicle while completing the repayment plan

Since reliable transportation is essential for work and daily life, this protection is one of the most valuable benefits of Chapter 13 bankruptcy.

How the Chapter 13 Repayment Plan Works

In a Chapter 13 case, the court works with you and your creditors to create a reasonable repayment plan based on your income and expenses.

Key features of a Chapter 13 repayment plan include:

Payments made over three to five years
Priority debts and secured arrears addressed first
Unsecured debts often reduced or partially repaid
Remaining qualifying unsecured debt discharged at the end

As long as you follow the approved plan, creditors must honor its terms.

Do You Need to Qualify for Chapter 13 Bankruptcy?

To file for Chapter 13 bankruptcy, you must meet certain requirements, including:

Having regular income
Staying within secured and unsecured debt limits
Proposing a repayment plan in good faith

Because eligibility and plan approval can be complex, working with an experienced Chapter 13 bankruptcy attorney is critical.

Why Timing Matters

Timing is crucial when foreclosure or repossession is involved. Filing before a foreclosure sale or repossession occurs often provides the strongest protection. Delaying action may limit your options.

Speaking with a bankruptcy attorney as soon as possible helps ensure your rights are protected and deadlines are not missed.

Chapter 13 Bankruptcy Attorney in Norman, Oklahoma

Law Offices of B. David Sisson helps individuals and families in Norman and across Oklahoma use Chapter 13 bankruptcy to stop foreclosure, prevent repossession, and regain control of their finances. He works closely with clients to develop repayment plans that protect assets and provide long-term relief.

Can You Keep Your House and Car in a Chapter 7 Bankruptcy?

Tue, 23 Dec 2025 17:00:08 GMT

Can You Keep Your House and Car in a Chapter 7 Bankruptcy?

One of the most common fears people have about filing for Chapter 7 bankruptcy is losing their home or vehicle. For many individuals and families in Norman and throughout Oklahoma, a house and car are essential to daily life — and the good news is that many people who file for Chapter 7 bankruptcy are able to keep both .

Whether you can keep your house and car depends on several factors, including equity, loan status, and Oklahoma exemption laws. Understanding how these rules work can help you make informed decisions about your financial future.

How Chapter 7 Bankruptcy Treats Property

Chapter 7 bankruptcy is designed to eliminate unsecured debts such as credit cards and medical bills. In exchange, a bankruptcy trustee may sell non-exempt assets to repay creditors. However, exemption laws protect many essential assets , allowing filers to keep the property they need to live and work.

Oklahoma provides specific exemptions that often protect homes, vehicles, retirement accounts, and personal property.

Can You Keep Your House in Chapter 7 Bankruptcy?

In many cases, yes — homeowners can keep their house in a Chapter 7 bankruptcy.

You may be able to keep your home if:

You are current on your mortgage payments, or
Your home does not have significant non-exempt equity, or
Your equity is protected by Oklahoma’s homestead exemption

Oklahoma’s homestead exemption is particularly generous and often protects the full value of a primary residence. However, if you are behind on mortgage payments, Chapter 7 does not automatically stop foreclosure long-term, and additional legal strategies may be needed.

Can You Keep Your Car in Chapter 7 Bankruptcy?

Many filers are also able to keep their car.

You may be able to keep your vehicle if:

Your car loan payments are current
The vehicle’s equity falls within Oklahoma’s motor vehicle exemption
The car is necessary for work or daily living

If a vehicle has little to no equity or is fully exempt, it is typically protected. Even if a car has equity, there may be legal options to help preserve it.

What Happens to Secured Property?

Homes and vehicles are considered secured property , meaning they are tied to loans. If you want to keep secured property in Chapter 7 bankruptcy, you generally must continue making payments on the loan.

If payments stop, the lender may have the right to repossess or foreclose, even after bankruptcy. This is why timing and legal guidance are critical.

What Property Is Usually Protected?

In addition to homes and cars, Chapter 7 bankruptcy often protects:

Retirement accounts and pensions
Household goods and personal items
Tools needed for work

Non-exempt property, if any, may be sold by the trustee, and the remaining qualifying debts are then discharged.

Why Speaking With a Chapter 7 Attorney Matters

Every bankruptcy case is unique. Equity calculations, exemption rules, and financial circumstances can change the outcome. Working with an experienced Chapter 7 bankruptcy attorney ensures:

Your assets are properly evaluated
Exemptions are maximized
Filing errors are avoided
Your rights are protected throughout the process

Chapter 7 Bankruptcy Attorney in Norman, Oklahoma

Law Offices of B. David Sisson helps individuals and families in Norman and throughout Oklahoma understand their bankruptcy options and protect what matters most. He carefully reviews each client’s financial situation to determine the best path toward debt relief.

Find Financial Relief with Chapter 7 Bankruptcy

Wed, 05 Nov 2025 05:00:40 GMT

Find Financial Relief with Chapter 7 Bankruptcy

Overwhelming debt can leave you feeling trapped and unsure of how to move forward. For many Oklahomans, Chapter 7 bankruptcy offers a fresh start by discharging most unsecured debts and giving individuals the chance to rebuild their financial future. At the Law Offices of B. David Sisson , our Norman bankruptcy attorney helps clients navigate the Chapter 7 process with clarity and confidence.

About Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often called a “liquidation bankruptcy.” It is designed for individuals who cannot reasonably repay their debts. The process allows for certain assets to be sold in order to pay back creditors, while most unsecured debts—such as credit cards and medical bills—are discharged permanently.

One of the key benefits of Chapter 7 is that most people can keep their essential assets , including retirement accounts, pensions, and in many cases, homes and vehicles. With the right legal guidance, you can move through this process while maintaining financial stability.

Do I Qualify for Chapter 7 Bankruptcy?

To qualify for Chapter 7, you must pass the means test , which compares your household income to the state median. In Oklahoma, the income guidelines may vary over time, but as of recent updates:

�� $39,749 for an individual
�� $51,097 for two people

If your income falls below these numbers (or if your allowable expenses bring you under the threshold), you may qualify. In some cases, exceptions to the income requirement can also apply. An experienced bankruptcy attorney can help determine your eligibility.

Additionally, before filing, you must complete credit counseling within the six months prior to filing your case.

Can I Keep My House or Car in Chapter 7?

One of the most common concerns about Chapter 7 is whether you’ll lose your home or vehicle. The truth is, many people are able to keep them:

�� Homes & Cars: If there’s little to no equity—or if the property is covered by exemptions—you may keep it.
�� Retirement Accounts & Pensions: Typically protected under federal and state law.
�� Other Exempt Property: Many personal belongings are also exempt.

Assets not covered by exemptions may be sold by the trustee, with proceeds distributed among creditors. Any remaining dischargeable debt is wiped clean, giving you a financial reset.

Debts That Cannot Be Discharged

While Chapter 7 wipes out most unsecured debts, some obligations cannot be eliminated, such as:

Certain tax debts
Student loans (in most cases)
Criminal restitution
Alimony and child support obligations

Understanding what debts qualify is critical to setting realistic expectations and planning effectively.

Why Work With a Chapter 7 Bankruptcy Attorney?

Bankruptcy law is complex, and mistakes in the process can delay or even jeopardize your case. By working with David Sisson , an experienced bankruptcy lawyer in Norman, you ensure that:

✅ You meet all requirements (means test, counseling, filings).
✅ Your exemptions are maximized to protect your assets.
✅ The process moves efficiently with minimal stress.

We are a debt relief agency . We help individuals and families file for bankruptcy relief under the U.S. Bankruptcy Code.

Struggling With Debt? Talk to a Chapter 11 Bankruptcy Lawyer in Norman, Oklahoma

Wed, 08 Oct 2025 04:00:06 GMT

Struggling With Debt? Talk to a Chapter 11 Bankruptcy Lawyer in Norman, Oklahoma

Financial struggles can threaten the very foundation of a business. If your company is overwhelmed by debt but you still want to continue operations, Chapter 11 bankruptcy may be the best solution. At the Law Offices of B. David Sisson , we help businesses and individuals in Norman, Oklahoma restructure their debt, protect their assets, and create a manageable plan for the future.

What Is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy was designed with businesses in mind, offering them the opportunity to reorganize debt while remaining open and operational. This type of bankruptcy is often used by corporations, partnerships, and small businesses, but it can also be available to individuals or married couples in certain circumstances.

Under Chapter 11, the court will typically appoint a trustee who oversees the process and helps develop a reorganization plan. This plan may include:

�� Discharging certain debts to provide financial relief.
�� Restructuring other debts into a manageable repayment schedule.
�� Canceling contracts or leases that place unnecessary burdens on the business.

Once the court approves the plan, the business or individual will begin making payments in accordance with the agreement—giving them the chance to regain financial stability without shutting down operations.

Benefits of Chapter 11 Bankruptcy

Filing for Chapter 11 can provide a range of benefits, including:

✅ Keeping your business open during the process.
✅ Stopping collection efforts and lawsuits through the automatic stay.
✅ Gaining time to reorganize finances and negotiate with creditors.
✅ Protecting valuable contracts or assets that are essential to your business.

The goal of Chapter 11 is not just survival—it’s creating a long-term path toward financial recovery.

Is Chapter 11 Right for You?

While Chapter 11 is commonly used by businesses, it isn’t the only bankruptcy option available. Chapter 13 bankruptcy , for example, may be better suited for individuals or sole proprietors with more limited debt levels. Determining which chapter fits your situation requires a careful review of your finances and long-term goals.

At the Law Offices of B. David Sisson, we help clients evaluate their options and choose the bankruptcy path that will provide the greatest benefit.

Why You Need an Experienced Bankruptcy Attorney

Bankruptcy law is highly complex and constantly evolving. Trying to handle a Chapter 11 case without legal counsel is extremely risky and can jeopardize your financial future. With decades of experience, David Sisson has successfully guided businesses and families throughout Norman and Oklahoma through the bankruptcy process —ensuring they receive the maximum relief available under the law.

We will work with you from start to finish, protecting your rights and developing a reorganization plan that gives you the best possible chance at financial recovery.

Foreclosure Defense Attorney in Norman, Oklahoma | We’ll Fight for Your Home

Tue, 09 Sep 2025 16:00:05 GMT

Foreclosure Defense Attorney in Norman, Oklahoma | We’ll Fight for Your Home

If you’ve fallen behind on your mortgage payments and creditors are calling nonstop, you may be wondering: “Can a lawyer really stop foreclosure?” The answer is yes—when you have the right foreclosure defense attorney on your side. At the Law Offices of B. David Sisson , we help homeowners in Norman, Oklahoma protect their homes, fight unfair foreclosure actions, and find real solutions to financial struggles.

Whether you’re in the early stages of foreclosure or have already been served with a lawsuit, our legal team is ready to step in and build the best defense strategy for your situation.

Understanding Foreclosure in Oklahoma

Foreclosure is the legal process through which lenders attempt to recover money owed on a defaulted loan, typically by taking ownership of your home. In Oklahoma, foreclosure is usually a judicial process , which means your lender must file a lawsuit to foreclose on your property.

That also means you have the right to defend yourself in court —and with the right legal representation, you may be able to stop or delay foreclosure, negotiate with lenders, or pursue alternatives that allow you to keep your home.

How a Foreclosure Attorney Can Help

At our Norman law office, we provide personalized strategies based on where you are in the foreclosure process. We can help if:

�� You are receiving aggressive collection notices and need to understand your rights.
⚖️ You’ve been served with a foreclosure lawsuit and must respond quickly.
�� You want to explore alternatives to foreclosure, such as loan modification or repayment plans.
�� You need a strong legal defense against improper or unfair lending practices.

We know that every homeowner’s situation is unique, and we take the time to find a solution that fits your financial and personal needs.

Using Bankruptcy to Stop Foreclosure

For many Oklahomans, filing for bankruptcy is one of the most effective foreclosure defenses. Here’s why:

Automatic Stay: The moment you file for bankruptcy, the foreclosure process is legally halted. Creditors must stop collection efforts until the bankruptcy case is resolved.
Debt Relief: Bankruptcy can erase, reduce, or restructure your debts, allowing you to regain control of your finances.
Catch-Up Plans: Bankruptcy may help you reorganize past-due payments, making it possible to keep up with your mortgage and avoid losing your home.

While bankruptcy isn’t right for everyone, it can provide the breathing room many homeowners need to save their homes and reset financially.

The Pros and Cons of Filing Chapter 7 in Oklahoma

Tue, 05 Aug 2025 20:15:00 GMT

The Pros and Cons of Filing Chapter 7 in Oklahoma

If you’re struggling with unmanageable debt, filing for Chapter 7 bankruptcy in Oklahoma may offer a way to reset your financial life. However, like any legal process, it has advantages and drawbacks. This guide outlines the pros and cons of Chapter 7 bankruptcy, helping you make an informed decision about whether it’s the right path for you.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," is designed to discharge unsecured debts like credit card balances, personal loans, and medical bills. In exchange, a trustee may sell certain non-exempt assets to repay creditors. However, Oklahoma law offers exemptions that protect many types of property, including homes, vehicles, and retirement accounts.

Pros of Filing Chapter 7 in Oklahoma

1. Quick Debt Relief

Chapter 7 typically takes just three to six months from filing to discharge, offering a fast resolution for unmanageable debt.

2. Stops Collection Actions

Once you file, an automatic stay is immediately put in place. This halts collection calls, lawsuits, wage garnishments, and foreclosures.

3. Most Unsecured Debts Are Wiped Out

Debts like credit cards, medical bills, and personal loans are generally discharged, giving you a clean slate.

4. Generous Oklahoma Exemptions

Oklahoma law allows you to keep key assets, such as your primary residence, a vehicle, retirement accounts, and essential household items.

5. No Repayment Plan

Unlike Chapter 13, Chapter 7 doesn’t require a multi-year repayment plan, which can be a major advantage for those with limited income.

6. Fresh Start

By wiping out debts, Chapter 7 offers a fresh financial beginning, allowing you to rebuild your credit over time.

Cons of Filing Chapter 7 in Oklahoma

1. Potential Loss of Non-Exempt Property

While Oklahoma’s exemptions are generous, you may still be required to surrender certain non-exempt assets to the trustee for liquidation.

2. Limited to Certain Types of Debts

Chapter 7 doesn’t discharge all debts. Obligations like student loans, recent tax debts, child support, and alimony generally remain.

3. Impact on Credit Score

A Chapter 7 filing stays on your credit report for up to 10 years, which can affect your ability to obtain new credit in the short term.

4. Income Eligibility Requirements

You must pass a means test to qualify for Chapter 7. If your income is above the Oklahoma median for your household size, you may need to consider Chapter 13 instead.

5. Can’t Catch Up on Secured Debts

If you’re behind on your mortgage or car loan and wish to keep the property, Chapter 7 may not be the best option, as it doesn’t offer a repayment plan for catching up on arrears.

Is Chapter 7 Right for You?

Filing for Chapter 7 in Oklahoma can offer a path out of overwhelming debt, but it’s essential to weigh the potential benefits and drawbacks. This type of bankruptcy works well for individuals with limited income, unmanageable unsecured debts, and few valuable non-exempt assets. However, if you’re trying to protect secured property or need to catch up on mortgage or car payments, Chapter 13 may be a better fit.

Conclusion

The decision to file Chapter 7 bankruptcy in Oklahoma is a significant one. It can provide a swift path to financial relief, but it’s not without its trade-offs. Carefully consider the pros and cons before making a decision, and consult with a trusted Oklahoma bankruptcy attorney who can guide you through the process.

Can You Keep Your Home with Chapter 13 Bankruptcy in Oklahoma?

Tue, 08 Jul 2025 19:45:00 GMT

Can You Keep Your Home with Chapter 13 Bankruptcy in Oklahoma?

If you’re struggling with overwhelming debt and facing the possibility of losing your home, you’re not alone. Many people in Oklahoma consider Chapter 13 bankruptcy as a practical solution to both manage their finances and keep their home. This guide explains how Chapter 13 works and how it can protect your home in Oklahoma.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as a “wage earner’s plan,” allows you to restructure your debts into a manageable repayment plan over three to five years. Unlike Chapter 7 bankruptcy, which may involve liquidating assets to pay creditors, Chapter 13 focuses on helping you repay debts while retaining ownership of your assets—including your home.

How Chapter 13 Can Help You Keep Your Home

In Oklahoma, Chapter 13 offers several key protections for homeowners:

Stopping Foreclosure

Once you file for Chapter 13, an automatic stay is immediately triggered, halting foreclosure actions. This legal protection stops lenders from continuing with foreclosure proceedings, giving you the time needed to catch up on missed payments.

Catching Up on Missed Payments

Chapter 13 allows you to include overdue mortgage payments in your repayment plan. By making these catch-up payments over three to five years and staying current on new payments, you can retain ownership of your home.

Protecting Home Equity

Oklahoma law provides generous exemptions that shield a significant portion of your home’s equity. Chapter 13 works in combination with these protections, ensuring you can keep your home while repaying other debts.

Who Is Eligible for Chapter 13 Bankruptcy?

To qualify for Chapter 13, you must have a steady income that supports your repayment plan. Your total secured and unsecured debts must fall within certain limits. Chapter 13 is often an excellent option for homeowners who can afford to pay back what they owe over time and wish to avoid the risk of foreclosure.

Additional Benefits of Chapter 13 in Oklahoma

Protection from Creditors: The automatic stay not only halts foreclosure but also stops wage garnishments and collection actions.
Flexible Repayment: You can propose a repayment plan tailored to your budget and circumstances, covering both secured and unsecured debts.
Avoiding Home Sale: By curing the mortgage default and maintaining regular payments, you can avoid losing your home.

Steps to Protect Your Home with Chapter 13

Consult an Oklahoma Bankruptcy Attorney: A qualified attorney can review your situation and help determine if Chapter 13 is the best option.
File Your Petition: Filing initiates the automatic stay, which stops foreclosure and other collection actions.
Propose a Repayment Plan: Your attorney can help you create a plan that includes back mortgage payments and fits within your income.
Attend the 341 Meeting: The trustee and creditors review the plan, and adjustments may be requested.
Make Payments: Keep up with regular mortgage payments and plan payments to keep your home protected.

Conclusion

Yes, it is possible to keep your home with Chapter 13 bankruptcy in Oklahoma. This form of bankruptcy gives homeowners a structured way to catch up on missed payments, stop foreclosure, and retain ownership of their property while regaining financial stability.

If you are worried about losing your home, acting quickly is essential. Filing for Chapter 13 may be the solution you need to protect your family and secure a more stable financial future.

Understanding Consumer Bankruptcy in Oklahoma: A Beginner’s Guide

Tue, 10 Jun 2025 19:15:00 GMT

Understanding Consumer Bankruptcy in Oklahoma: A Beginner’s Guide

When facing overwhelming debt, many Oklahomans consider bankruptcy as a pathway to financial stability. This guide provides a comprehensive overview of consumer bankruptcy in Oklahoma, focusing on essential concepts and processes to help you make informed decisions.

What Is Consumer Bankruptcy?

Consumer bankruptcy refers to a legal process designed to help individuals manage or eliminate their debts. In Oklahoma, most individuals file under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code, each offering unique benefits and requirements.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often called “liquidation” bankruptcy, allows individuals to discharge most unsecured debts, such as credit card balances, personal loans, and medical bills. A trustee may sell non-exempt assets to repay creditors, but Oklahoma law provides exemptions that protect essential property like a primary residence, personal belongings, and certain income.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as a “wage earner’s plan,” enables individuals to reorganize debts into a manageable repayment plan over three to five years. This option is particularly helpful for those who want to keep their home or car while catching up on missed payments.

Key Benefits of Bankruptcy in Oklahoma

Filing for bankruptcy offers several advantages:

Automatic Stay: Stops collection efforts, including lawsuits, wage garnishments, and creditor calls.
Debt Relief: Eliminates or restructures unsecured debts, providing a fresh start.
Asset Protection: Oklahoma’s generous exemptions can protect your home, vehicle, and retirement accounts.
Path to Recovery: While bankruptcy affects credit, it can also be the first step toward rebuilding your financial health.

Who Can File for Bankruptcy in Oklahoma?

Most individuals can file for Chapter 7 or Chapter 13 if they meet eligibility requirements:

Chapter 7: Must pass the means test , which compares your income to the median for your household size in Oklahoma.
Chapter 13: Requires a steady income to fund the repayment plan and limits on total secured and unsecured debts.

The Bankruptcy Process in Oklahoma

Consultation: Seek guidance from a knowledgeable attorney to evaluate your situation.
Credit Counseling: Complete a mandatory credit counseling session from an approved provider.
File Petition: Submit paperwork detailing your finances, debts, and assets.
Automatic Stay: Immediately halts most collection actions.
Trustee Review: A trustee oversees the case and may request additional information or documentation.
341 Meeting: Attend a meeting with the trustee and creditors to review the case.
Discharge or Repayment: For Chapter 7, eligible debts are discharged; for Chapter 13, you’ll begin the repayment plan.

Common Questions About Consumer Bankruptcy

Will I lose everything? No. Oklahoma’s exemptions protect essential property, such as your home and car.
Can I stop foreclosure? Yes. Filing for bankruptcy triggers the automatic stay, which temporarily halts foreclosure proceedings.
How long does it take? Chapter 7 typically takes 3–6 months, while Chapter 13 involves a 3–5 year repayment plan.

Is Bankruptcy Right for You?

Bankruptcy isn’t the right solution for everyone, but it can offer much-needed relief for those facing insurmountable debt. If you’re struggling with unpaid bills, wage garnishments, or collection lawsuits, it’s worth considering your options under Oklahoma bankruptcy laws.

Common Misconceptions About Bankruptcy: Separating Myths from Facts

Tue, 20 May 2025 09:00:10 GMT

Common Misconceptions About Bankruptcy: Separating Myths from Facts

Filing for bankruptcy is a major decision, and for many people, it’s surrounded by fear, confusion, and misinformation. These common myths can stop people from getting the financial relief they need. If you’re considering bankruptcy in Oklahoma, understanding the truth can help you make a confident and informed decision.

Myth 1: Filing for Bankruptcy Means You’ve Failed

Fact: Bankruptcy is a legal tool designed to help people get back on their feet. Life happens—job loss, medical emergencies, divorce, and unexpected expenses can all create financial struggles beyond your control. Choosing bankruptcy isn’t giving up; it’s taking action to rebuild and move forward.

Myth 2: You’ll Lose Everything You Own

Fact: Many people believe that bankruptcy means giving up their home, car, and personal belongings. In reality, bankruptcy laws include exemptions that protect certain assets. In most Chapter 7 and Chapter 13 filings, people are able to keep essential property, including a vehicle, household goods, and even their home, depending on the amount of equity and state exemption limits.

Myth 3: Bankruptcy Wipes Out All Debts

Fact: Bankruptcy can eliminate many types of unsecured debt, such as credit card balances, personal loans, and medical bills. However, some debts cannot be discharged through bankruptcy. These typically include child support, alimony, most student loans, and certain tax debts. It's important to understand which of your debts are eligible for discharge before filing.

Myth 4: Your Credit Will Be Permanently Ruined

Fact: Bankruptcy will appear on your credit report for up to 10 years, but that doesn’t mean you’ll never be able to rebuild. In fact, many people begin to see their credit improve within a year or two after filing. Bankruptcy eliminates debt, which can lower your debt-to-income ratio—a key factor in credit scoring. With responsible financial habits, you can work toward rebuilding your credit over time.

Myth 5: You Can Only File Bankruptcy Once

Fact: While there are limits on how often you can file, it is possible to file bankruptcy more than once. The time between filings depends on which type of bankruptcy you filed previously and which you are filing now. For example, if you filed Chapter 7 before, you may need to wait eight years to file Chapter 7 again. However, in some cases, you may be eligible to file Chapter 13 sooner.

Making Informed Decisions About Bankruptcy

Misunderstanding bankruptcy can prevent people from using a legal and effective way to manage overwhelming debt. If you're feeling trapped by your financial situation, don’t let myths hold you back from exploring your options.

At Oklahoma Bankruptcy Law , we help individuals and families across Oklahoma understand the bankruptcy process clearly and confidently. Whether you're considering Chapter 7 or Chapter 13, we’ll walk you through your options so you can decide what's right for your situation.

Contact us today to schedule a consultation and take the first step toward financial peace of mind.

Chapter 7 vs. Chapter 13 Bankruptcy: What is the Difference & How Does it Impact Me?

Wed, 23 Apr 2025 10:06:32 GMT

Chapter 7 vs. Chapter 13 Bankruptcy: What is the Difference & How Does it Impact Me?

When debt becomes overwhelming, bankruptcy can provide a way forward. The two most common types for individuals are Chapter 7 and Chapter 13 bankruptcy. While both can help eliminate debt and provide financial relief, they work in different ways. Understanding the differences can help you determine which option is best for your situation.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often called liquidation bankruptcy , is designed for individuals who do not have the income to repay their debts. This process eliminates most unsecured debts, such as credit card balances, medical bills, and personal loans , giving the filer a fresh start.

To qualify, individuals must pass a means test , which compares their income to the median income in their state. Those who do not meet the income requirements for Chapter 7 may need to consider Chapter 13 instead.

One of the biggest concerns about Chapter 7 is asset protection. While some assets may need to be sold to repay creditors, many essential assets are protected through bankruptcy exemptions . This can include a primary home, vehicle, retirement accounts, and personal belongings. If an asset falls under an exemption, the filer can keep it.

Chapter 7 is typically a fast process, taking around four to six months to complete. Once the case is finalized, eligible debts are discharged, meaning the filer is no longer responsible for paying them.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as reorganization bankruptcy , is a good option for individuals with regular income who want to restructure their debt rather than have it eliminated immediately. Instead of liquidating assets, Chapter 13 allows filers to create a court-approved repayment plan that lasts between three to five years .

This option is best for those who have fallen behind on mortgage or car payments but want to keep their property while catching up on missed payments. Because Chapter 13 focuses on repayment rather than liquidation, filers do not have to sell their assets. Instead, they make monthly payments to a bankruptcy trustee, who distributes funds to creditors. Once the repayment plan is successfully completed, any remaining eligible debt is discharged.

Choosing the Right Bankruptcy Option

The choice between Chapter 7 and Chapter 13 depends on income, financial goals, and the need to protect assets . Chapter 7 is often the best option for those with limited income and no realistic way to repay their debts, as it provides a quick discharge of qualifying debts. On the other hand, Chapter 13 is ideal for individuals who have a steady income and want to protect their home, car, or other valuable property while restructuring their debts into a manageable payment plan.

Take the First Step Toward Debt Relief

If you are considering bankruptcy, it is important to understand how each option will impact your financial future. Whether you need immediate debt relief through Chapter 7 or a structured repayment plan through Chapter 13 , bankruptcy can be a powerful tool to regain control of your finances and move forward with confidence.

Chapter 7 Bankruptcy: Can You Keep Your House and Car?

Tue, 25 Mar 2025 15:15:00 GMT

chapter 7 Bankruptcy: can you keep your house and your car?

Facing overwhelming debt can be stressful, and many people considering Chapter 7 bankruptcy wonder what will happen to their assets—especially their home and car. Understanding how bankruptcy affects secured and unsecured property can help you make an informed decision about your financial future.

What Happens to Your Assets in Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is designed to provide a fresh start by eliminating most unsecured debts. However, the process involves selling non-exempt assets to repay creditors. Whether you can keep your home or vehicle depends on equity, exemptions, and secured loan agreements.

Are Your House and Car Protected?

✔ Secured property with no net equity is typically safe. This includes homes and vehicles where the loan balance is equal to or greater than the property’s value.

✔ Exempt property, like retirement accounts and pensions, is usually protected. These assets are not subject to liquidation under federal and state bankruptcy laws.

✔ Property with equity may still be kept. Many bankruptcy cases allow individuals to retain assets that have equity, depending on available exemptions and repayment agreements.

What Happens to Non-Exempt Assets?

If you own property that is not protected under bankruptcy exemptions, it may need to be sold to repay creditors. The bankruptcy court will determine:

Which assets must be liquidated
How funds are distributed among creditors
The remaining debt that qualifies for discharge

Once the process is complete, any remaining eligible debt is discharged , meaning you will no longer be responsible for repaying it.

Debts That Cannot Be Discharged in Chapter 7

While Chapter 7 bankruptcy eliminates many types of debt, certain obligations cannot be discharged, including:

❌ Some types of tax debt
❌ Student loans (except in rare circumstances)
❌ Criminal restitution
❌ Alimony and child support
❌ Court-ordered fines or penalties

If you have any of these obligations, you may still need to make arrangements to continue payments after filing for bankruptcy.

Is Chapter 7 Bankruptcy Right for You?

Filing for Chapter 7 can be a powerful solution for individuals struggling with debt, but understanding what assets you can keep is crucial. Each case is unique, and bankruptcy exemptions vary by state. Seeking guidance can help you navigate the process and protect the assets that matter most.

Take the First Step Toward Debt Relief

If you’re considering Chapter 7 bankruptcy and wondering what property you can keep, it’s important to evaluate your options. Taking action now can help you regain financial stability and move forward with confidence.

Small Business Bankruptcy Options: Chapter 11 or Chapter 13

Mon, 30 Nov 2020 22:48:00 GMT

If you're a small business owner who is thinking about filing a bankruptcy case, you may be wondering which option is better: chapter 11 reorganization or chapter 13. There are several factors involved in a successful reorganization and relief from debt collection practices according to bankruptcy law, and in this article, you will learn more about both chapter 11 reorganization and chapter 13.

If you are a small business owner and you have questions about filing a chapter 11 or chapter 13 bankruptcy petition for your business, schedule your free consultation with the Law Offices of B. David Sisson.

Chapter 11 Reorganization for Small Business

Chapter 11 reorganization is only available for small businesses classified as a corporation or partnership of some kind. This includes the ever-popular LLC. If you are a sole proprietor, you are not eligible to file this type of bankruptcy case as you are considered an individual in the eyes of the bankruptcy court. Bankruptcies filed under chapter 11 are reserved specifically for business entities. Chapter 11 reorganization does operate a little bit differently than chapter 13, although its goal is to allow for the successful reorganization of the business. First, the bankruptcy case is filed. Generally, it is a voluntary bankruptcy petition. There are instances where it is involuntary and forced by the creditors of the business.
In addition to the filing of the petition, there must also be schedules prepared that list the assets and liabilities of the business, a schedule that lists the executory contracts and unexpired leases, and a statement of financial affairs. Any business filing a chapter 11 reorganization must complete credit counseling and file the certificate of credit counseling with the bankruptcy court. Once the bankruptcy petition and the schedules are filed, an automatic stay is issued. An automatic stay, once issued by the bankruptcy court, stops creditors from engaging in collection activities, including foreclosures and repossessions. It also puts a stop to the ongoing collection calls and letters as well. However, there are certain instances where a secured creditor can get permission from the bankruptcy court to receive relief from the automatic stay and begin collection activities again. An example would be to foreclose on the property so that they can sell the property and apply the funds received for it to the outstanding debt. The creditor claims, which are listed on the liability schedules, are made part of the debt repayment plan. The major difference between a chapter 11 reorganization and a chapter 13 bankruptcy is in court approval of the plan. Court approval of the plan can take place despite the objections of the creditors.

Debtor-In-Possession

Another difference between a chapter 11 bankruptcy case and a chapter 13 bankruptcy case is that the debtor is known as a “debtor-in-possession.” The debtor remains in possession of the business. It continues, by and large, to operate as normal, although some difficult decisions need to be made to trim the business. There are instances where the bankruptcy court made decide to appoint a trustee. If a trustee is appointed, the trustee has the ability to act as the CEO. This includes the power to take over bank accounts, make hiring and firing decisions, liquidate assets, and work with creditors. The payments to creditors are made according to the confirmed plan which is arranged according to the class of creditors. According to bankruptcy law, impaired claims will be paid less than their full value.
The plan can be modified after it has been confirmed and under certain circumstances, but only "if circumstances warrant such modification" and the court is notified and agrees that the plan should be modified. Requests to modify the plan can be made by the debtor-in-possession, the trustee, the United States Trustee, or an unsecured creditor. Another significant difference between chapter 11 and chapter 13 bankruptcy cases is when the debtor receives the discharge. The discharge in chapter 11 is provided after the confirmation of the plan takes place. In chapter 13, the discharge for the debtor does not occur until after all of the payments have been made by the debtor, which takes between three to five years. The filing fee for a chapter 11 reorganization is $1,167 and a $550 miscellaneous administrative fee. These are fees that are paid to the court. With the bankruptcy court's permission, you may be allowed to pay these fees in up to four installments.

Chapter 13 Bankruptcy for Small Business

Chapter 13 bankruptcy cases can be filed by sole proprietors. A sole proprietor is an individual who is operating as a business and has not formally incorporated or became a partnership. In other words, they are acting in a business sense but they are still an individual. So, if your name is Jane Jones and you do bookkeeping out of your home as Jones Bookkeeping Services but you are not incorporated in any way, you are most likely a sole proprietor. If you needed to file a small business bankruptcy, you would not be eligible to file for a chapter 11 bankruptcy case since you are an individual. However, chapter 13 would permit the debtor (you, as a small business owner) to reorganize while still remaining in business. So, you would still be, in effect, a debtor-in-possession similar to a chapter 11 reorganization. Let's look at how a bankruptcy filed under chapter 13 works. Chapter 13 bankruptcy can be used by a sole proprietor for a successful reorganization of their business as long as they do not exceed the debt ceiling of $394,725 for unsecured creditors and $1,184,200 for secured creditors.

The purpose of chapter 13 is to seek the protection of a bankruptcy court while also allowing the debtor to repay some or all of their debts.

Unsecured creditors will receive a portion of what is owed to them. It allows the debtor to keep their assets, including catching up payments with secured creditors. It allows a special class of creditors known as priority creditors or priority claims to be paid in full. Examples include certain back taxes and domestic obligations such as child support and alimony. To file for chapter 13, a bankruptcy petition must be filed along with the proper schedules that explain the assets and liabilities. There must also be a schedule of income and expenses placed on file with the bankruptcy court as well. This is because the bankruptcy court will use this information when it is time to confirm the plan of repayment. If there are executory contracts and unexpired leases, a schedule that lists these items must also be included. A statement of financial affairs must also be included.

Bankruptcy law also requires that anyone filing for chapter 13 to complete credit counseling. Once the bankruptcy petition, schedules, and credit counseling are on file with the bankruptcy court, the automatic stay is issued. The automatic stay is important because it stops collection activities from creditors. This includes:

Wage garnishments
Foreclosures
Repossessions
Collections phone calls
Lawsuits related to collections

A debt repayment plan must be created by the debtor, and it must be submitted for court approval. The debt must be repaid over a term of three to five years using the debtor's disposable income. This highlights the importance of submitting the income and expenses to the bankruptcy court when the bankruptcy petition was initially filed. The goal of the bankruptcy court isn't to make the debtor suffer: the bankruptcy court wants to make sure that the debtor can continue to pay their monthly expenses.

Trustee Appointment

A trustee is appointed in the chapter 13 bankruptcy case to oversee the process. After court approval of the repayment plan, the payments are made directly to the trustee. The payments must start within 30 days of filing the bankruptcy case even if the plan has yet to be approved by the court. The trustee distributes the payments to the creditors "as soon as practicable" after the plan is confirmed. If the plan is not confirmed, the debtor can modify the plan. Another option is to convert the plan to chapter 7. Priority claims receive the full amount of what is owed to them. Secured creditors generally receive at least the value of the collateral. Unsecured creditors receive a portion of what is owed to them.
It is up to the debtor to ensure that they make the planned payments on time to the trustee. The trustee will permit the debtor to pay them directly or through payroll deduction. Debtors may not take on new debt without first getting permission from the trustee. The reason that bankruptcy law is set up in this manner is that taking on more debt while making chapter 13 plan payments could make it impossible to continue to make the payments. Keep in mind that the point of a chapter 13 bankruptcy case is to use all of the disposable income available to pay off debts.
The discharge for Chapter 13 bankruptcy is received after the payment plan is completed according to bankruptcy laws. This includes paying off any domestic support obligations that were due as well.

Hardship discharges for chapter 13 bankruptcy cases do exist, but only for circumstances that are considered beyond the debtor's control and through no fault of the debtor.

Additionally, to qualify for a hardship discharge, creditors must be at a point where they would have received as much as they would have if the debtor would have filed a chapter 7. Finally, a modification of the plan must not be possible. Illness and injury are not generally considered sufficient for a hardship discharge under bankruptcy law.

Successful Reorganization for Your Small Business

Successful reorganization for your business requires a lot of careful consideration. While chapter 11 reorganization and chapter 13 bankruptcy are similar, they have their differences. Ultimately, it is a decision that you should explore with a bankruptcy attorney. Here are some key takeaways:

Individuals who are considered sole proprietors cannot file a chapter 11 reorganization.
Individuals who are sole proprietors can file chapter 13 for reorganization as long as they do not exceed the debt ceiling.
Chapter 11 discharges are received for a business after the repayment is confirmed.
Chapter 13 discharges are received after the repayment plan is completed which takes three to five years.

Learn More About Small Business Bankruptcy

If you have a small business and you are exploring the possibility of bankruptcy, the Law Offices of B. David Sisson provides free consultations. We know that determining whether bankruptcy is right for your business can be difficult. We're here to help.

Oklahoma Small Business Bankruptcy: What Happens to Employees?

Tue, 03 Mar 2020 22:40:00 GMT

When a small business files for bankruptcy, what happens to employees? Will they still have their jobs? Will the business be required to pay their employees? Small business bankruptcy can be incredibly scary for both small businesses and their employees.

Here's what happens under the bankruptcy code to employees after small businesses file for bankruptcy to get help with their business debt.

Oklahoma Small Business Bankruptcy: Factors to Consider

Tue, 03 Mar 2020 22:38:00 GMT

Filing for bankruptcy for a small business is considerably different than filing as an individual or married couple. While a sole proprietor, limited liability companies, and other corporations are entitled to seek the protection of the bankruptcy code for their business debt, there are certain factors that must be considered.

These factors determine which type of bankruptcy should be chosen to benefit the business entity.

In this article, you will learn more about the main factors business entities should consider before filing for bankruptcy with the bankruptcy court and how those factors determine which type of bankruptcy is best for small businesses. If you have questions about small business bankruptcies after reading this article, schedule your free consultation with the Law Offices of B. David Sisson.

Is Chapter 13 bankruptcy right for you?

Wed, 31 May 2017 21:33:00 GMT

Chapter 13 bankruptcy is a way that individuals and businesses can choose to repay some of their unsecured debts. It is different than filing for a chapter 7 bankruptcy since it allows the debtor to keep their belongings.

A chapter 13 bankruptcy takes longer to complete than a chapter 7 bankruptcy. Those who file for this type of bankruptcy use all their excess income to repay their debts. Not all people qualify for or want to file for chapter 7. Chapter 13 is often a better option for their circumstances.

In this video, Attorney B David Sisson explains who may qualify to file for a chapter 13 bankruptcy under the US bankruptcy code.

How to file chapter 13 bankruptcy involves a process of determining if you're eligible. Then, the preparation of the petition and schedules occurs. You must come up with an appropriate repayment plan for your debts that the chapter 13 trustee accepts.
Once the trustee accepts the payment plan, you make payments directly to the trustee. The trustee distributes payments to the creditors. As a chapter 13 debtor, you keep your home, your vehicle, and other belongings while you pay off your debts.
One of the biggest differences between chapter 7 and chapter 13 involves home ownership. If you own a home and foreclosure is a concern, a chapter 13 may allow you to save your home, since repaying what you owe is worked into your payment plan. If you have a regular income of some kind and have unsecured debt of $400,000 or less, call the Law Offices of B David Sisson now for your free phone consultation: 405-447-2521!