Oklahoma Bankruptcy Law
The state of Oklahoma contains many state bankruptcy laws that reflect federal bankruptcy laws and those of most other states. The state’s exemptions are quite similar to other states in the Midwest, and their exemptions are even quite lenient in some cases. The Oklahoma bankruptcy laws are not there to stop you from filing bankruptcy; they’re only there to help guide you through the process of bankruptcy and even help your credit in the long run.
Like other states, Oklahoma requires a person thinking about Oklahoma bankruptcy to attend a credit counseling course six months before filing. The same individual must also show evidence of attending a debtor education course before reaching a settlement.
Oklahoma Bankruptcy : Personal and Corporate
All people, families, and corporations can file for Oklahoma bankruptcy. Depending on their level of debt and means for income, a person or family may choose to file for Chapter 7 or Chapter 13 bankruptcy. If a corporation is facing economic trouble and needs a grace period, they may choose to file for Chapter 11.
OK Bankruptcy : Chapter 7
If their debt is substantial and they have a lack of income, a person and their lawyer will often try to file for Chapter 7 bankruptcy. This type of bankruptcy is referred to as straight or liquidation because an individual is left with a clean slate after creditors obtain the necessary assets.
Before filing for Chapter 7, a person or family must pass a means test to prove they fall below the state’s average household income. The unemployment rate is quite low in Oklahoma—at 7.1 percent—and the average household income falls at $42,076. If a person qualifies for Chapter 7 in the state of Oklahoma, they may be entitled to the following exemptions:
• 1 permanent residence
• 75% of weekly earnings for specified time period
• 1 vehicle
• Furniture and some clothing
• $10,000 of farming equipment and all farm animals
• $2,000 worth of guns
OK Bankruptcy : Chapter 11
If a corporation is facing economic instability and needs time to develop a business strategy, they may choose to file for Chapter 11. The owner will often oversee the changes and report back to a judge and creditor.
OK Bankruptcy : Chapter 13
If a judge and creditor prove you can afford structured payments for the next three to five years, you may be forced to file Chapter 13 bankruptcy. Some people choose to file for Chapter 13 as well. The advantages to filing Chapter 13 include keeping your property in the wake of foreclosure and keeping some valuable assets as well.
If you file for Chapter 7, a creditor may collect your state and federal taxes in some cases. The tax returns qualify as an asset in Chapter 7, however, your tax returns are often safe if you file for Chapter 13.
Filing for Oklahoma Bankruptcy
The process of filing for Oklahoma bankruptcy is extremely tedious and complex. You should consider hiring a lawyer as much as possible to help you with filing the proper documents, files, and fees. OK bankruptcy lawyer will also help you reach a settlement with your creditors.