Considering Bankruptcy?


Bankrutpcy may be your key to a fresh start. But how can you know?

You'll need to talk with a lawyer, but first, take 5 minutes to learn more about bankruptcy and see if it might help you.

About Bankruptcy

What is Chapter 7?

In a Chapter 7 bankruptcy, you file court papers asking that certain unpaid debts be wiped out. Most debts are wiped out after a Chapter 7 bankruptcy, including credit card debt, medical bills, and civil judgments.

Bankruptcy also stops wage garnishment and harassment by collection agencies. Studies show that in 96% of cases, people who file for Chapter 7 get to keep all their property. Most of the cases where property is taken by the court involve real estate or tax refunds.

if you have filed a Chapter 7 previously, you may be able to file a Chapter 13 bankruptcy after 4 years.  If you have filed a Chapter 7 previously, you must wait 8 years to file another Chapter 7.

Do you qualify to file a Chapter 7 Bankruptcy Petition?

You might qualify for legal assistance from Upsolve, a 501(c)(3) legal aid nonprofit. Upsolve is an online program focused on assisting low-income Americans through Chapter 7 bankruptcy at no cost. You can find more information about Upsolve by going to their website You can learn about the filing process and answer a very short interview to see if you qualify.

If you need to file Chapter 7 bankruptcy, you may be able to file your bankruptcy through Upsolve. Upsolve is a non-profit organization that helps people file for Chapter 7 bankruptcy at no cost. Read about whether Chapter 7 bankruptcy is right for you and visit Upsolve’s web site,, to see if you qualify.

You may not need to file for Bankruptcy protection or bankruptcy might not be the best solution to your situation. You should talk to a lawyer about your case before making the decision to file for Bankruptcy protection.

What is Chapter 13?

A Chapter 13 Bankruptcy is basically a debt-consolidation. What that means is that you pay your debts over a period of time, usually from three to five years. In most cases, the amount you pay will be less than what you actually owe. You pay what you can and the rest is discharged. Creating a "plan" to pay back your creditors is a fairly complicated process and you will definitely need an attorney to help you. A Chapter 13 bankruptcy is best for individuals who owe taxes, are behind on home mortgages, have co-debtors they want to protect, have property that needs to be protected or who have a substantial amount of income left over every month after basic living expenses.

If you want to file a Chapter 13 bankruptcy, you must have a job. You must also be able to show that you will have money left over every month after you deduct living expenses to pay into your repayment plan. You should be aware that new changes in the bankruptcy law may make it necessary for a lot more people to file a Chapter 13 rather than a Chapter 7, especially if there is any income left over after monthly living expenses are taken out

What debts do not get wiped out?

Filing for bankruptcy is not a good idea for everyone. It is a serious step and you need to understand the costs of filing. It's important to understand that the following debts cannot be canceled in a Chapter 7 bankruptcy:

  • Student loans in most cases
  • Loans on a car that you still own and want to keep
  • Unpaid child support or alimony payments
  • Unpaid fines
  • Most tax debts
  • Debts due to fraud, theft, or embezzlement
  • Damages to another person caused by drunk driving or conduct done on purpose
  • Debts from a property settlement in a divorce
  • Some other types of debts

These debts must still be listed on the bankruptcy papers filed with the court, but they can’t be wiped out.

What else is important to know?

  • Bankruptcy doesn't release you from large credit card debts that happened right before the bankruptcy was filed
  • You cannot erase debts that you get after filing for bankruptcy
  • You will unlikely be able keep valuable property, such as a vacation home, an RV, or expensive jewelry
  • Bankruptcy stays on your credit report for 10 years
  • You can only get a Chapter 7 discharge once in an eight-year period
  • You may be able to protect your income and property without filing bankruptcy

How much does bankruptcy cost?

There are three things a debtor may need to pay for. They're all required by the bankruptcy court.

  1. $335 filing fee (Chapter 7)
    $310 filing fee (Chapter 13)
  2. Around $10-$20 for online pre-bankruptcy course
  3. Around $10-$20 for online post-bankruptcy course

If debtors earn less than a certain amount, they may qualify for a fee waiver and you won't have to pay anything.

Legal Aid Services of Oklahoma may be able to assist you with a bankruptcy. In some cases, you can represent yourself. 


Last Review and Update: Mar 08, 2022
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