Every state has its own laws when it comes to bankruptcies, and it can be difficult to determine what falls under state and what falls under federal jurisdiction. Bankruptcy attorney James M. Wirth, who owns the Debt Line Law Office, based in Tulsa, Oklahoma, discusses here the specific laws that pertain to filing for bankruptcy in the state of Oklahoma.
When it comes to Oklahoma bankruptcy law, it’s important to distinguish what is covered under federal law, and what is covered under Oklahoma state law. The Bankruptcy Act is a federal act, but there are also Oklahoma laws that affect consumers going into bankruptcy.
In order to file for bankruptcy in Oklahoma, you need to be represented by an Oklahoma attorney who is licensed to practice in the federal district courts in Oklahoma. After you do that, the most important Oklahoma laws affecting consumers going into bankruptcy are the Oklahoma exemptions. Oklahoma has one of the most favorable laws for bankruptcy exemptions in the 50 states.
Qualifying for Oklahoma Exemptions
Under the new Bankruptcy Act, as long as you have lived in the state of Oklahoma for the two years prior to filing for bankruptcy, you qualify for Oklahoma exemptions. If you have not lived in Oklahoma for at last two years prior to filing, you may look to claim under the federal exemptions, or the exemptions of your previous residential state.
Oklahoma exemptions are favorable as they have pretty much an unlimited homestead exemption. That means that regardless of the value of your house, and how much equity you have in your house, you can still file for bankruptcy and discharge unsecured debts for Chapter 7 bankruptcies.
For instance, if you have $50,000 in credit card debt, and you are living in a $2 million home that was paid off, you could keep the $2 million house and discharge the $50,000 credit card through the Chapter 7 bankruptcy. That is, as long as you qualify for the Chapter 7 bankruptcy in the first place.
Exemption for Wages - and Chickens and Guns
Another exemption is the exemption for wages, which is 75 percent in Oklahoma. That means if you had a judgment against you, the most they could garnish would be 25 percent of your check.
Other exemptions in Oklahoma include the fact that you can keep your 401K, or retirement account, as well as a vehicle up to $7,500 in equity for each person filing. You can also keep much of your normal household property, as well as a wedding ring up to $3,000. Some of the more arcane exemptions include 100 chickens, two horses with bridles and saddles, ten hogs, 20 head of sheep, and up to $2,000 in guns.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.