A common fear among individuals and couples struggling with overwhelming debt is whether they will lose everything in bankruptcy. Fortunately, for those who are eligible for Chapter 7 bankruptcy, state and federal laws allow most filers to keep certain types of important property, such as your home and vehicle. If you are facing insurmountable debt in the form of medical bills, credit card debt, student loans or car loans, you may benefit from filing a Chapter 7 or Chapter 13 bankruptcy in Oklahoma. Although some of this debt cannot be discharged in bankruptcy, discharging eligible debts to free up some cash or establishing a manageable repayment plan based on your income can significantly improve your financial situation. Contact our experienced attorneys at Oklahoma Legal Center today to discuss your bankruptcy options.
Types of Property Exempt in Chapter 7
During a Chapter 7 case in Oklahoma – also known as liquidation bankruptcy – nonexempt property may be seized and sold by a bankruptcy trustee, who then distributes the profits to creditors. Certain exempt property, however, does not have to be forfeited to pay off your debts in a Chapter 7 filing, and Oklahoma and federal bankruptcy laws outline these exemptions:
- Residence – Your homestead of one acre or less in a city, village or town; a mobile home; or property up to 160 acres located outside of a city, town or village
- Tools of trade – Up to $10,000 in value
- Vehicle – Up to $7,500 value for single filers and $15,000 for joint filers
- Guns – Up to $2,000 in value
- Pension plans – IRAs and ERISA qualified plans
There are other types of property that are considered exempt in a Chapter 7 bankruptcy filing, which your bankruptcy attorney can detail for you.
Contact Our Experienced Attorneys to Discuss Your Options
One of the most important factors to think about when considering a Chapter 7 bankruptcy in Oklahoma is whether your debts are insurmountable. If you cannot envision a means of managing your medical or credit card debt, or if your mortgage or car loans are a constant source of stress, Chapter 7 gives you the opportunity to be free of collection actions. However, if your income enables you to meet your debt obligations over the course of three to five years, a Chapter 13 bankruptcy might be a better option for you. If you are considering filing bankruptcy in Oklahoma, your first course of action should be to enlist the help of our qualified attorneys at Oklahoma Legal Center. Our law firm is located in Oklahoma City, and our lawyers have extensive experience helping debtors statewide determine the best course of action for their individual financial situations.