Although bankruptcy is a serious and complicated matter with the exact steps varying from state to state, each bankruptcy chapter uses the same terminology following a basic process. Two parties are involved when filing bankruptcy, the debtor and creditor. The debtor is the person owing the money to the creditor or bank. The average bankruptcy case involves more than one creditor the debtor owes money or property.
Bankruptcy Attorney in Oklahoma City, OK is similar to that of typical filings. There are two types of debt secured and unsecured. Unsecured debt is that not tied to property. Secured debt involves something the creditors have a legal right to repossess if payments toward the debt are not paid. Mortgages are the most common form of secure debt entering into bankruptcy. Banks making home loans include a lien on your house. If you stop making mortgages payments the bank can foreclose and take possession of your house forcing you to vacate the property by way of eviction.
The type of Bankruptcy in Oklahoma City, OK filed depends on whether you are filing on behalf of a corporation or an individual. Secured business debt can be far more complicated. Business loans include liens against intangible aspects of the business, such as trademarks, patents, or intellectual property. The creditor can still repossess properties and intangible assets. Cain Law Office insures bankruptcy settlements always pay secured creditors first.
There are four types of bankruptcy named for their chapters. Chapter 7 is the most common personal filing. It is a liquidation bankruptcy. The debtor’s trustee sells off all the unpaid assets in an attempt to pay back the debt to the fullest extent possible. Chapter 11 is the most complicated filed by large businesses in trouble. The company maintains its assets while a reorganization of payment is determined. Chapter 12 is specific to farmers and farm owners. Chapter 13 is like chapter 11 but for individuals with a great amount of assets and debt who wish to retain their property. A five-year payment plan reorganizes the debt to accommodate a realistic payment option; a portion of the debt may be forgiven after calculating income and the limits of debt.