Do I Get to Keep My House and Car if I File Bankruptcy in Oklahoma?

One common question people have when they’re filing bankruptcy in Oklahoma: Do I Get to Keep My House and Car if I File Bankruptcy in Oklahoma? In Oklahoma, the laws regarding bankruptcy allow exemptions of certain assets. Exemptions in bankruptcy allow you to keep many of your assets when you file. This article will cover the options available under both federal and Oklahoma bankruptcy exemptions and how to make them work for you.

Bankruptcy Exemptions

Bankruptcy exemptions are legal protections that cover some types of assets, including your car and house, from creditors during a bankruptcy. These exemptions play a role in determining what you can keep after filing for bankruptcy. Oklahoma has perhaps the best exemptions in the country. They allow you to choose whether you want to take state exemptions or federal ones. If the your property fits within the state’s exemptions and not federal, the state exemptions apply.

Oklahoma State Exemptions

Once again Oklahoma has some of the best exemptions in the Country. Oklahoma has exemptions that often make it more beneficial for residents to use instead of federal exemptions. They allow an unlimited homestead exemption for your primary residence. This applies so long as the lot it sits on does not exceed one acre in a city or town or 160 acres on rural land. If your home falls under these criteria, you’ll likely be able to keep it after filing for bankruptcy. For vehicles, the state exemption covers up to $7,500 of equity in one vehicle.

Federal Exemptions

If you choose the federal exemptions, and you wont, the homestead exemption allows you up to $27,900 in equity in your primary residence. For vehicles, the federal motor vehicle exemption covers up to $4,450 of equity. You also have the option to use a wildcard exemption under federal law. This covers up to $1,475 of any property and an unused portion of your homestead exemption up to $13,950.

The Impact of Bankruptcy

The type of bankruptcy you file, Chapter 7 or Chapter 13, will also impact your ability to keep your home and car. In a Chapter 7 case in Oklahoma, if your home and car are fully covered by exemptions, you can keep them. However, with non-exempt assets these assets might be at risk. In a chapter 7 an example of a non-exempt asset might be a second home that is not your primary residence. For Chapter 13, you propose a repayment plan based on your income and disposable income. The repayment plan allows you to catch up on missed payments for your home or car. This plan can help you keep both assets as long as you continue to make regular payments according to the plan.

Things to Keep in Mind

When you’re considering filing for bankruptcy, one of the most important first steps is to assess the value of your assets and understand the exemptions that apply. Skipping this step or making mistakes can result in losing important assets like your home or car. Look at your situation closely and consider how the legal specifics can impact you.

Bankruptcy Attorneys in Oklahoma

Understanding bankruptcy exemptions, as well as bankruptcy types, is critical to making the best choice for you. Through careful evaluation, you can make informed decisions to best protect your property during bankruptcy. A Kania Law Office bankruptcy lawyer can clarify your rights and help you through the process. For help in your specific case, contact a lawyer at Kania Law Office by calling 918.743.2233. Or click this link to ask an online legal question.