What is the Bankruptcy Reform Act?

The Bankruptcy Reform Act is a federal law that was passed in 1978 to help people who are struggling with unmanageable debt. It establishes rules and limitations for filing for bankruptcy, including requirements for providing the court with detailed financial information. It also makes creditors and debt collectors more accountable for their actions. Under the Act, debtors can choose to either reorganize their debt under Chapter 11 or liquidate their assets under Chapter 7 of the bankruptcy code. In Oklahoma, the Bankruptcy Reform Act is also referred to as the “Oklahoma Bankruptcy Reform Act of 1974.” This Act was passed to help Oklahoma citizens better manage their debt. This Act requires those filing for bankruptcy to provide the court with a detailed financial statement outlining their income, assets, and liabilities. It also puts certain limitations on the amount of debt that can be discharged in bankruptcy. The Bankruptcy Reform Act affects everyone in Oklahoma, providing relief to those who find themselves in unmanageable debt. It provides an avenue to help them become debt free. It also provides creditors and debt collectors with a clear set of rules and regulations so they can make informed decisions when dealing with debtors. Without this Act, debtors could find themselves in a difficult financial situation with no real way out.

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What is the Bankruptcy Reform Act?

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