Will I Lose All of My Stuff if I File for Bankruptcy in Oklahoma?damg2023-11-10T20:28:50+00:00
Will I Lose All of My Stuff if I File for Bankruptcy in Oklahoma?
Many of our clients ask whether they will lose their possessions if they file for bankruptcy in Oklahoma. The answer to that question is quite simply, NO! Oklahoma has some of the most generous bankruptcy property exemptions in the United States. If your primary residence is one acre or less and located in a city, town, or village, or if you don’t live in a city, town, or village and the land is less than 160 acres, the equity exemption is unlimited. Further, all of your household furnishings carry an unlimited exemption. Your clothes up to $4,000 in value are exempt and the equity in one vehicle up to $7,500 is exempt. This amount is doubled to $15,000 for a married couple filing jointly. There are many other Oklahoma exemptions that protect your property!
Exceptions to the Rule
One exception is for items that were purchased with a store credit card or an installment loan that contains a security agreement. A security agreement works like a car loan and makes the item you purchased, like the car with your car loan, the security for the debt. Generally, this means you will have the option to either surrender the property securing the debt and discharge the debt or enter into some sort of an agreement with the creditor to repay the debt in order to keep the property. Oftentimes, a settlement can be reached so that you can keep your property and be able to afford the payment. You can often tell if your credit card or loan contains a security agreement simply by looking at the contract or purchase agreement you signed when you incurred the debt.
Secured Debts and Bankruptcy
Secured debts generally include things like your home mortgage and your car loan. Most often, our clients who file for bankruptcy want to keep their house and their car(s). This is typically done by a reaffirmation agreement negotiated by your attorney with the creditor where you agree to continue paying the debt in exchange for keeping the asset. The downside to reaffirmation agreements is that at some point in the future after your bankruptcy is concluded, if you become unable to pay the debt, it cannot be discharged and you are still obligated to pay the debt.
The bottom line is Oklahoma property exemptions prevent the Bankruptcy Trustee and your creditors from taking the clothes off your back, the majority of your household goods, and your family home.
Call 918.551.8955 or click “Schedule a Free Virtual Consultation” on our website to setup a FREE and confidential initial consultation with a bankruptcy lawyer in Tulsa to answer your questions about keeping your property in bankruptcy and begin working toward securing your financial future.
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.