What You Should Not Do After Filing for Chapter 7 Bankruptcy in Oklahoma

by Luke Homen

Bankruptcy is more than filling out forms and submitting copies of documents. Chapter 7 bankruptcy may result in some of your assets being sold, while you can keep others so that you can be discharged from many debts. There are specific actions you should avoid to qualify for protection and take advantage of it with the least hassle.

If you need bankruptcy protection, Chapter 7 is an option that may or may not be suitable for you, your family, or your business. Call the Convenient Bankruptcy law firm so we can discuss your situation and explore what’s the best fit. You can reach us at 405-296-0069 or fill out our online contact form, and one of our bankruptcy attorneys will contact you.

Here are some things you should avoid or cannot do after filing for Chapter 7 bankruptcy.

1. Plan on Quickly Filing for Bankruptcy Protection Again

If a Chapter 7 bankruptcy discharged your debts, you can’t make another Chapter 7 filing until at least eight years from the date you filed the prior one. You must wait at least four years from your filing date before filing a Chapter 13 bankruptcy. The purpose of these delays is to discourage abusive filings that are made to delay or avoid paying legitimate debts. Consulting with bankruptcy attorneys in Oklahoma can help you understand your options and navigate the complexities of the bankruptcy process.

Planning your spending and debt loads post-discharge will be years before bankruptcy protection becomes an option again if things don’t go well financially.

2. Ignore Financial Education Requirements

In Chapter 7 bankruptcy cases, you (and your spouse if you’re filing jointly) need to take two courses before receiving a bankruptcy discharge. Before filing, there’s a credit counseling course to help you decide if you can avoid bankruptcy by finding ways to pay your obligations. The debtor education course is taken after you file but before your debts are discharged. It’s meant to teach you strategies to stay financially solvent post-bankruptcy.

You must document taking these courses and file the proper form. Failing to take these courses or filing documentation could result in the dismissal of your bankruptcy case or denial of your discharge.

3. Not Disclose Your Business to the Bankruptcy Trustee

The court-appointed trustee will sell your assets and pay creditors. If you seek Chapter 7 bankruptcy protection, you must inform the trustee and provide information about it. Whether the business can continue depends on its structure. You might stay in operation if you’re a sole proprietor (you own it directly). If it’s owned through a separate legal entity, like a corporation or LLC, you must file for bankruptcy on their behalf. Failing to be upfront about a business with the trustee could result in a dismissal of your case.

Bankruptcy is a process. It’s not just filing forms with a court and waiting for the judge to issue an order. If correctly handled, your ongoing responsibilities can help move your case along. Failing to approach bankruptcy properly can delay the process or result in your case’s dismissal.

4. Not Pay Important Debts that Weren’t Discharged

The main benefit of Chapter 7 bankruptcy is that you’re no longer responsible for debts and obligations that are discharged. But that doesn’t cover every debt you may have, including the following:

• Mortgages, car loans, and secured debts (property is used as collateral for the loan) must be paid if you want to continue possessing this property. If you don’t, the creditor may sell your house or car to help pay for your obligation (though there are protections for equity you may have built up), which, depending on your situation, may not be a problem for you
• Recent income taxes, child support obligations, and other priority debts must be paid after filing for bankruptcy.
• Debts you incurred by fraud or criminal acts. If you defrauded a creditor or engaged in other wrongful acts (like injuring someone while committing a crime), bankruptcy won’t rid you of the obligation to pay victims) – this only becomes an issue in a very small number of cases.
• Student loans are usually nondischargeable, so you must keep up payments. They may be dischargeable if you bring a separate lawsuit to seek discharge (ask your bankruptcy attorney for more details!!)

You may face collection actions and garnished wages if you don’t pay your non-dischargeable debts. If you’re relieved of paying dischargeable debts, it should be easier to pay off these obligations.

Have Questions or Concerns About Bankruptcy? Convenient Bankruptcy Law Firm is Here to Help

If you or your business are experiencing financial difficulty and bankruptcy might be an option, schedule a free, confidential discussion with a Convenient Bankruptcy lawyer. We can discuss your circumstances, income, goals, and your best options for reaching them.

Bankruptcy law is highly technical, and your financial future is at stake, so you should consult a Tulsa Oklahoma bankruptcy lawyer. Schedule a consultation with us by calling 405-296-0069 or contact us online to set up a time to talk. You’ll be glad you did.