Bankruptcy Exemptions in Oklahoma protect your personal property from creditors and the Court. For many people, filing bankruptcy is a source of fear and stress. This isn’t unusual or silly given the financial hardship people find themselves in. When you file bankruptcy most people file either a chapter 7 or a chapter 13 case. Regardless of the chapter you file it’s crucial to know which property is safe and which can be lost in bankruptcy. If property you have inst protected by Bankruptcy Exemptions in Oklahoma you could loose it to the creditor or the Bankruptcy Court. The good news is that most of your property isn’t lost when you file. This is because of the vast number of property exemptions available in our State.
Homestead Exemptions in Oklahoma Bankruptcy
When you file bankruptcy your home’s entire value is protected, no matter how high. If the home is in town, the property must be under an acre; if it’s rural, you’re limited to 160 acres. In cases where over 25% of the property is used for business purposes, the homestead exemption is capped at $5000.
The exemption’s dollar amount is determined by taking the property’s value less what you owe. For example, if the home is appraised at $250,000 and your mortgage is at $100,000, your exemption is $150,000. It’s possible to keep your home if you file chapter 7. All that you have to do is make sure the payments are current. In chapter 13 bankruptcy mortgage payments do not need to be current. Any past due payments must be caught up in whats called the chapter 13 bankruptcy plan. Every case is different, and it’s best to consult a bankruptcy attorney for advice specific to your situation.
All filers can exempt a motor vehicle up to $7500 in value. If your car is worth $20,000 and you owe $15,000, you have $5000 in equity and the vehicle is exempt. If equity exceeds $7500, the bankruptcy trustee may sell the vehicle to pay creditors and you’d receive the dollar value of the exemption. In most instances, you can keep your car if you continue to make timely payments.
401(k)s, IRAs, and Other Types of Retirement Plans
A Chapter 7 or Chapter 13 bankruptcy doesn’t have to derail your retirement plan. Most retirement accounts are completely exempt. However, all accounts must be listed so they’re included in the bankruptcy schedule. Your attorney will be able to give you more details.
Funding From Personal Injury Claims
If you’re owed money from a personal injury or worker’s compensation claim, those funds are exempt up to a limit of $50,000. Be sure to discuss any pending injury claims with your bankruptcy lawyer so they are correctly listed on the asset schedule.
Furnishings and Household Items
In a bankruptcy in Oklahoma, you’re permitted to keep all reasonable furnishings and household goods reserved for the family’s personal use. This includes televisions, personal computers, and other belongings. In short, all your household possessions are safe.
Other Bankruptcy Exemptions in Oklahoma
Some exemptions aren’t covered in the categories listed above. In the state of Oklahoma, you can keep jewelry such as wedding rings (up to a certain value). Burial plots, certain farm implements, and tools used in various trades are also exempt.
Bankruptcy Lawyers in Tulsa Oklahoma
Though bankruptcy is a frightening concept to some, it doesn’t mean losing everything you own. Oklahoma’s bankruptcy exemptions allow you to keep most of your personal property and certain other assets. Don’t go through the process alone. Get a free phone consultation from a bankruptcy attorney here in Tulsa Oklahoma.