Chapter 7 Bankruptcy in Oklahoma | All you need to know

You can erase most of your unsecured debts ( credit card bills, unsecured personal loans etc. ) and have new beginnings by filing a Chapter 7 Bankruptcy in Oklahoma. Under Chapter 7, a trustee is appointed with authority of trading property for realizing outstanding creditors of the client. Trustee cannot sell property that is claimed exempt for paying creditors.

Discharge of Debts

Discharge of debts means that you have been discharged of your debts from your creditors. They cannot demand that debt by any measures ( writing it to you or filing a case ). After the court orders of discharge, if the creditor tries to collect that debt, he will be fined for the same.

Who goes for Chapter 7 Bankruptcy Oklahoma

People with uncontrollable debt ( predominantly unsecured debts ) and income being significantly lower than their debts, goes for Chapter 7 for a financially stable future.

Who can declare Chapter 7 Bankruptcy

  • If you have past debts discharged under Chapter 7 Bankruptcy in the last 8 years or under Chapter 13 Bankruptcy in the last 6 years, you are not eligible for filing Chapter 7.
  • Within 180 days before filing, you must have taken part in credit-counseling under an authorized agency.
  • You’re not eligible if you have a bankruptcy case ruled out under 180 days.
  • Details about your property or income should be 100% correct. False information about anything will lead to dismissal of your case.
  • Further eligibility involves a complicated formula, calculating income, debt etc. The case may be approved if the filer’s income is lower than the median income of the state.
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( Oklahoma median income as of 2019 was $59,397) The income is calculated as per family size.

Oklahoma Bankruptcy Exemptions :

  • Homestead Exemption : It provides unlimited homestead exemption on maximum one acre if you are living in town or city and up to 160 acres elsewhere. If more than 25% of area is used for business use, the exemption can be reduced remarkably.
  • Motor Vehicle Exemption : Up to $7,500 are exempted in equity in a motor vehicle.
  • Wage Exemption : Wages earned from the last 90 days before filing bankruptcy are protected up to 75%.
  • Oklahoma Personal Property Exemption: This involves personal/household furniture and appliances, burial pots, books and portraits, apparels up to $4,000, guns up to $2,000 and livestock for families etc.

 

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