How to File a Chapter 13 Bankruptcy in Oklahoma
Although bankruptcies are regulated by federal law, state laws can have bearing on allowable exemptions. Oklahoma is one of 34 states that doesn't allow federal exemptions to be substituted for state exemptions. Most states (including Oklahoma) do, however, allow much higher exemption amounts than the federal government. For example, federal guidelines allow a $3,450 vehicle deduction, while Oklahoma provides up to $7,500 for a vehicle deduction. With these provisions in mind, those filing Chapter 13 bankruptcy should pay attention to Oklahoma's unique exemptions.
Other People Are Reading
Instructions
-
-
1
Enroll in a credit-counseling class. Oklahoma residents must abide by federal guidelines which mandate credit counseling classes prior to filing for bankruptcy. Also, as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, financial education classes must be completed prior to the discharge of bankruptcy proceedings. Classes cost between $50 and $100 and must be provided by a federally approved Oklahoma credit counseling agency.
-
2
Seek legal advice. Although you might be able to navigate a Chapter 7 bankruptcy filing without an attorney, Chapter 13 filings are much more complicated.
-
-
3
Develop your re-payment plan with the help of your lawyer. You'll need to include the names of all creditors with claims against you, the amounts owed, the priority of debts (priority, secured and unsecured), and your proposed timetable for your re-payment plan. The re-payment time period will be three to five years, depending on your income. Your plan will be three years if your income is less than the Oklahoma median income for a family of your size, or five years if your income exceeds the Oklahoma median income. As of Oct. 31, 2010, the median incomes in Oklahoma were $38,929 for a single wage earner, $50,710 for a family of two, $54,328 for a family of three and $61,816 for a family of four. Add $7,500 for each additional family member.
-
4
Include your Oklahoma exemptions, including up to one fourth of your wages within three months prior to filing. Hardship cases may be allowed higher wage exemptions. You'll also take exemptions for items such as tools, vehicles, government pay (Social Security and workers' compensation), pensions, personal property and many other items.
-
5
File your petition with the appropriate Oklahoma bankruptcy court. Oklahoma has three district bankruptcy courts. The Eastern court is in Okmulgee, the Northern court is in Tulsa and the Western court is in Oklahoma City. You must include a certificate of completion from your credit counseling class as part of your paperwork. A trustee will be appointed.
-
6
Meet with your trustee and/or creditors. Federal law requires your trustee meet with creditors within 20 to 50 days after filing.
-
7
Attend your re-payment plan hearing in which your attorney will present your plan to the court.
-
1
Tips & Warnings
You can't file Chapter 13 if you received a previous Chapter 7, 11 or 12 discharge within the previous four years. If the previous case was a Chapter 13 filing, you must wait two years before you're eligible for another Chapter 13 filing.
You can include federal exemptions not provided by Oklahoma law. Beware of outdated versions of federal exemption lists. The majority of online postings don't reflect the 2010 changes that kicked in on April 1, 2010. Federal bankruptcy law mandates increases every three years, and 2010 was a third year in the cycle.
References
Resources
- Photo Credit Jupiterimages/Photos.com/Getty Images
