Will I lose my house and car in a chapter 7 bankruptcy?
99% of chapter 7 bankruptcies in Oklahoma are what is called ‘no asset’ cases. This means that there are no assets available for the Trustee to administer for your estate. Assets such as homes and cars are exempt from your creditors’ reach as are most if not all of your personal possessions.
Will a chapter 7 bankruptcy stop my garnishment?
Yes, a bankruptcy petition is a very powerful instrument. When you file all actions to execute against you on a debt come to a screeching halt.
Does a bankruptcy ruin my credit for the next 10 years?
This is a myth spread by creditors. Your credit is based on your ability and desire to pay. If you do not file and you continue with a large debt or a judgment your credit will never improve. If you file a chapter 7 bankruptcy your debt will disappear and your credit rating will start to improve upon your discharge (approximately 90 days after you file). Within two years you should be able to purchase cars and a house at traditional rates.