Oklahoma Bankruptcy Laws: What are the Laws regarding Bankruptcies in the State of Oklahoma?
There will be times when your financial situation dictates that you file for bankruptcy. You invested all your money in your business, as you imagined it to be successful in the future. However, due to sudden changes in the market due to the constant evolution of technology, your company was unable to compete with others. With bills piling up on top of one another, declaring bankruptcy seems to be the only option.
Another scenario is when you face a medical emergency, which forces you to spend thousands of dollars. When your financial situation is dire, the best way is to file for bankruptcy, as it gives you room to breathe. However, several people think twice about this decision, as they don’t know to do in this situation. Here are all the laws regarding bankruptcies in the state of Oklahoma;
Types of bankruptcies in Oklahoma
Chapter 7 in Oklahoma
If you want to get a fresh financial start to your life, the option is to file for Chapter 7 bankruptcy. When you go this route, it places all your non-exempt property under sale, and the proceedings go the creditors, while the trustee overseeing this process gets a cut.
You won’t be able to clear out all your debts such as student loans, child support, and alimony. If you wish to retain secured debts, you need to reaffirm them by signing an agreement. However, you should bring the payments up-to-date, to avail this option.
To file for chapter 7, you don’t need to have minimum debt, which works well for individuals with low income. At the same time, this option will benefit you if the value of your property is lower than the discharged debt.
Chapter 13 in Oklahoma
You should file for Chapter 13 bankruptcy if you have enough income after subtracting all your living expenses to pay a portion of your debts. While it doesn’t wipe out how much you, unlike Chapter 7, it does come with other advantages.
For starters, this option allows you to keep the non-exempt property under your possession. However, you should come up with a repayment plan, to pay back the creditors. The amount will depend on the type of debt, expenses, and income. To receive a discharge, you must complete the payment, which takes about three to five years.
Federal exemptions in Oklahoma
If you file for bankruptcy in Oklahoma, you can’t opt for federal exemptions, unlike other states throughout America. However, you have the option fo choosing federal nonbankruptcy exemptions, such as protection against veterans benefits and federal retirement accounts.
Joint bankruptcy in Oklahoma
If married, you have the option of filing for joint bankruptcy in Oklahoma. As a result, you and your spouse can double the number of exemptions, when both parties own properties.
How to file for bankruptcy in Oklahoma?
Once you determine which chapter is best for your financial situation, you need to head to U.S Bankruptcy Court forms and fill out the paperwork. You must provide all financial information, such as property transactions, debt, income, property, and expenses.
For Chapter 7 bankruptcy, you need to meet the requirements of the means test. It determines whether your family income is lower than Oklahoma’s median income. Also, when you file for bankruptcy, you need to attend a credit counseling session. Check with the U.S Trustee to find out which providers offer this service.
You need to pay a filing fee, along with debt and credit counseling costs. If they are beyond your budget, find out if you qualify for a waiver. You also have the option of paying in installments to make the fees affordable. For Chapter 7, you need to pay $335 and $310 for Chapter 13 respectively.