What are the requirements for bankruptcy in Oklahoma?

The requirements for filing bankruptcy in Oklahoma will differ slightly depending on the type of bankruptcy that you file. The two most common types of bankruptcy protection for individuals and couples are Chapter 7 and Chapter 13.

• Chapter 7 is a straight liquidation bankruptcy, which involves selling your "non-exempt" assets in order to pay as much of your debt as possible. This type of bankruptcy has income restriction requirements.
• Chapter 13 bankruptcy is a reorganization of your debt with a court supervised repayment plan that usually lasts three to five years.

In Oklahoma, as well as in other states, there will be debts that cannot be discharged by bankruptcy. These would include most government backed student loans, taxes, child support and other court ordered payments. Although not a requirement, the first thing you should do if you find yourself seriously considering bankruptcy is to seek the advice of an attorney who specializes in bankruptcy and debt relief. He or she can analyze your specific situation and help you decide if bankruptcy is right for you, and if so, which type.

In order to file Chapter 7 in Oklahoma you have to pass a means test, which starts with comparing your average monthly earnings for the last six months with the state median income. If you were to file bankruptcy after November 1, 2010 and you were a family of two you are probably eligible if your average monthly earnings was under $4,076 per month.

In Oklahoma, you cannot file Chapter 13 bankruptcy if you have unsecured debt in excess of $290,525 and secured debt in excess of $871,550.

Oklahoma state bankruptcy exemptions are fairly generous, and in most cases if you can continue to afford to make your mortgage payments you are unlikely to lose your house during bankruptcy. Contact a local bankruptcy attorney to learn more about eligibility and what property you would be allowed to retain through your bankruptcy.