Oklahoma Debt Relief

The 3-year time limit set by Oklahoma Credit Card Debt law for filing a lawsuit for unpaid open-ended accounts is called a Statute of Limitations (SOL). The SOL begins when the first scheduled payment is missed, but starts again from the beginning if the debtor makes any partial payments. Debtors receiving a summons should be careful to file an answer by certified mail within 35 days or a default judgment entry in favor of the creditor will be entered by the court.

Judgment Enforcement

Oklahoma law allows creditors 5 years to collect on a judgment once entered. The judgment continues to collect interest at the rate specified in the contract, or 10% if the contract rate is higher than that allowed by state law. While the creditor may attach all real and personal property to satisfy the judgment, the law protects homesteads from forced sale. If more than 25% of the homestead is used for business, the protection is limited to $5,000.

The creditor may also attach wages, but consumer credit transactions have special limits in place. The creditor may only garnish 25% of the debtor’s disposable earnings or the amount exceeding 30 times the federal minimum hourly wage for each week. Prejudgment garnishment is prohibited.

Oklahoma residents should exercise care in entering into credit contracts that might contain a “judgment by confession,” clause. Such language serves to enter automatic judgment in favor of the creditor should the debtor default on the account.

Debt Settlement

Rather than risk wage garnishments and property seizures, consumers can use Debt Settlement to arrange for an interest free payment plan. Such a plan may make repayment easier and may help consumers avoid bankruptcy.