Oklahoma Bankruptcy Filing
Oklahoma bankruptcy begins in a bankruptcy court where a decision will be made based on a means test. This test is a calculated assessment of an individual’s income, household, and expenses against those of all other Oklahoma residents. Depending on the calculations, an individual may fall above or below the median.
Where the means test places a case stipulates which kind of bankruptcy is possible, if any at all. Bankruptcy can be filed through a joint petition of a husband and wife or through a sole individual. Despite bankruptcy terms certain types of debts cannot be eliminated through bankruptcy. These are called Non-dischargeable Debts and include alimony, child support, student loans, and taxes.
Oklahoma has two kinds of bankruptcy for consumers. Chapter Thirteen bankruptcy allows individuals to pay of their own debts by using their own income. The Oklahoma bankruptcy court will organize a repayment plan based on the individual’s credit history, income, current debts, and household. The payment plan can range from three years to five years but cannot exceed five years. Each month an individual is required to pay a specific amount until the assigned time ends.
Chapter Seven bankruptcy assigns a trustee to a case to liquidate all non-exempt forms of property. The acquired funds will then be used to pay creditors. This kind of bankruptcy is for the most severe circumstances and only lasts a maximum of six months. Once a Chapter Seven petition has been granted, all foreclosures will be stopped and all credits halted.
Exempt Property in Oklahoma
Property that is designated as exempt depends on the state of bankruptcy. In Oklahoma bankruptcy exemptions are organized in a chart and categorized by type and value. Exempt property can be kept from liquidation depending its value and the type of property it is. If an individual wants to keep non-exempt property that is proposed for liquidation, he or she is required to purchase the property as if the property were to otherwise be liquidated.
Exemption also include property equity, unless the equity is an assigned asset for liquidation. When equities are liquidated they are exchanged into cash. Equity can be covered by exemptions if the equity is for a motor vehicle or a house, is a secure loan, and if all payments are current and up to date. According to United States law, individuals have the right to choose either federal exemptions or Oklahoma state exemptions for Chapter Seven bankruptcy.
Each property exemption is broken into an asset category that designated by a value. These categories include public benefits, tools of trade, wages, insurance, pensions, homestead, miscellaneous, and personal property. Insurance can include group life policy insurance and assessment benefits. The miscellaneous category includes child support, alimony, and business partnerships.
Pensions can include pensions for county employees, police officers, firefighters, and disabled veterans. Personals property is normally separated by values and includes motor vehicles under three thousand dollars, clothing under four thousand dollars, number of livestock, books, and guns. Public benefits can include social security and unemployment compensation.