Oklahoma Bankruptcy Filing
Oklahoma bankruptcy begins in a bankruptcy court where a decision will
be made based on a means test. This test is a calculated assessment of
an individual's income, household, and expenses against those of all
other Oklahoma residents. Depending on the calculations, an individual
may fall above or below the median.
Where the means test places a case stipulates which kind of bankruptcy
is possible, if any at all. Bankruptcy can be filed through a joint
petition of a husband and wife or through a sole individual. Despite
bankruptcy terms certain types of debts cannot be eliminated through
bankruptcy. These are called Non-dischargeable Debts and include
alimony, child support, student loans, and taxes.
Oklahoma has two kinds of bankruptcy for consumers. Chapter Thirteen
bankruptcy allows individuals to pay of their own debts by using their
own income. The Oklahoma bankruptcy court will organize a repayment
plan based on the individual's credit history, income, current debts,
and household. The payment plan can range from three years to five
years but cannot exceed five years. Each month an individual is
required to pay a specific amount until the assigned time ends.
Chapter Seven bankruptcy assigns a trustee to a case to liquidate all
non-exempt forms of property. The acquired funds will then be used to
pay creditors. This kind of bankruptcy is for the most severe
circumstances and only lasts a maximum of six months. Once a Chapter
Seven petition has been granted, all foreclosures will be stopped and
all credits halted.
Exempt Property in Oklahoma
Property that is designated as exempt depends on the state of
bankruptcy. In Oklahoma bankruptcy exemptions are organized in a chart
and categorized by type and value. Exempt property can be kept from
liquidation depending its value and the type of property it is. If an
individual wants to keep non-exempt property that is proposed for
liquidation, he or she is required to purchase the property as if the
property were to otherwise be liquidated.
Exemption also include property equity, unless the equity is an
assigned asset for liquidation. When equities are liquidated they are
exchanged into cash. Equity can be covered by exemptions if the equity
is for a motor vehicle or a house, is a secure loan, and if all
payments are current and up to date. According to United States law,
individuals have the right to choose either federal exemptions or
Oklahoma state exemptions for Chapter Seven bankruptcy.
Each property exemption is broken into an asset category that
designated by a value. These categories include public benefits, tools
of trade, wages, insurance, pensions, homestead, miscellaneous, and
personal property. Insurance can include group life policy insurance
and assessment benefits. The miscellaneous category includes child
support, alimony, and business partnerships.
Pensions can include pensions for county employees, police officers,
firefighters, and disabled veterans. Personals property is normally
separated by values and includes motor vehicles under three thousand
dollars, clothing under four thousand dollars, number of livestock,
books, and guns. Public benefits can include social security and