Whether or not you can keep rental property you own in an Oklahoma Bankruptcy depends on which bankruptcy chapter you file. If you plan to file a chapter 7 bankruptcy you probably cant keep the property. This is because a chapter 7 bankruptcy is more like a liquidation of your assets in exchange for the discharge of you unsecured debts. The only property that you can keep in this chapter of bankruptcy are those assets that are exempt. Although there are many exempt assets in a chapter 7 one being your home, rental property is not exempt. Also, remember that if you derive income from your renters that income is included in your means test and if your total income from all sources exceeds the median family income for Oklahoma you wont qualify for the chapter seven.
On the other hand if you are filing a chapter 13 bankruptcy you can keep your rental property. This is because in a chapter 13 you keep all of your assets both exempt and non-exempt assets. The big difference is that in an Oklahoma chapter 13 you must pay a certain percentage of your unsecured debts back to the creditors and you do this through a payment plan that lasts from three to five years.
For a Free and Confidential consultation with a Chapter 7 or Chapter 13 bankruptcy attorney from EZ Oklahoma Bankruptcy call 918-637-1546 or email me today.