Oklahoma Bankruptcy Laws
Federal and state laws protect the bankruptcy process. Bankruptcy laws differ by state and can be somewhat complicated. Prior to making a decision about bankruptcy, be certain you know all the facts about how the laws in your state will apply to you. Find answers by speaking with a local bankruptcy attorney. Get a free case evaluation with an attorney near you by completing the free form below.
Oklahoma’s bankruptcy laws are designed so consumers have some protections when working through overwhelming debt situations. Before beginning the process, make sure you understand your rights.
Oklahoma Bankruptcy Exemptions
Current Oklahoma bankruptcy laws protect certain assets from being sold during the bankruptcy process. These are as follows:
- Up to $125,000 in home equity for a home or manufactured home acquired within 1,215 days of filing for bankruptcy. Otherwise, the home may be kept without limit
- Up to $3,000 for wedding an anniversary rings
- 75 percent of wages for past 90 days
- Burial plot
- Up to $10,000 tools of the trade
- Reasonably necessary amounts for support from alimony, maintenance, and support payments
- Books, pictures, portraits
- Farm implements
- Up to $7,500 for a vehicle
- Livestock intended for personal or family use, including five milk cows and calves under six months, 100 chickens, two horses with tack, 10 hogs, 20 sheep, and feed for one year
- Up to $2,000 for the household’s guns
- Personal bodily injury, death, or worker’s compensation claims to $50,000
- Up to $4,000 for clothing
- Prescription health aids
- Federal earned income tax credits
- IRA funds
- Group life insurance
- Earnings needed to care for family or other dependants
- Prepaid funeral benefits
- Retirement interest, profit sharing plan, or pension
- Public assistance
If you wish to keep your car and it still has a loan on it, you need to reaffirm or pay off the loan within 45 days of the 341 meeting, and continue making payments from it.
Oklahoma Chapter 7 Bankruptcy Law
Federal legislation makes it more difficult to file Chapter 7 bankruptcy, which is the form of bankruptcy that erases most debts. To file this form of bankruptcy, you must first pass a means test. If your income is at or below the median level Oklahoma, you can file Chapter 7.
Oklahoma Chapter 13 Bankruptcy Law
Chapter 13 bankruptcy is designed to allow you to keep your assets as you work through a repayment plan that eliminates your debt over three to five years. The repayment is supervised by the Oklahoma bankruptcy trustee. Chapter 13 bankruptcy does not require a means test.
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