What Property Can I Keep In Bankruptcy:
We file a lot of bankruptcy petitions here at EZ Oklahoma Bankruptcy. People come in to our Tulsa Bankruptcy law office for an initial interview, and some of the big concerns that we hear pertain to what property can be kept.
Questions Regarding Oklahoma Bankruptcy Law Exemptions usually sound like:
I’m ready to file chapter 7 bankruptcy, but I need to know if I can keep my car. I need to get to work, and my car is the only way that I can get there!
Or something like:
I’m ready to file bankruptcy, but there is one more thing that I need to know. Please, please, please tell me that I can keep my house.
Or, more rarely:
I’m ready to file bankruptcy. But, I don’t want to file unless I know that I can keep my flock of one hundred chickens.
Filing bankruptcy is an emotional process. Families desire to maintain, as much as possible, the life that they lead prior to filing bankruptcy. Maintenance of business as usual means keeping the items that you’ve acquired over the years. This property may include your home, car, retirement or many other items of personal property that you have acquired over the years. In addition to both your home and personal property you may have certain proceeds you expect from personal injury claims or social security disability claims. The State of Oklahoma has set of a series of categories that outline what a debtor can keep after filing for bankruptcy, and between you and me, the list is pretty generous. We’ve simplified the list below:
Oklahoma Bankruptcy Law Exemptions Include
Even a king who has run into financial difficulty can keep his castle in Oklahoma. As long as the house in question is the primary residence, you can keep it. Yes, this includes mobile homes and any land the mobile home rests on.
2. Household items.
Any furniture use by the family unit, including a computer and computer accessories can be kept after a bankruptcy. Worried about books and pictures? Don’t be, you can keep those too. We are going to, even if ill-advised, lump guns into the household items category. In Oklahoma, you can keep $2,000 worth of gun.
3. Jewelry and Clothing.
These items have price limits. You can keep clothing items up to $4,000. Wedding and anniversary rings can be kept up to $3,000.
This may be the most common concern that we hear in connection to filing a bankruptcy petition. Here is the bright line rule: if the vehicle is equal to or less than $7,500, you can keep the vehicle. You are allowed to keep one vehicle per debtor, meaning that couples can keep two vehicles worth $7,500 each.
5. Burial Plots.
Oklahoma allows petitioners to keep burial plots held for the purpose of sepulcher. So, what is sepulcher? Just a fancy term of Latin origin meaning for the purpose of burial. The breakdown: if you are holding the burial lots for the purpose of burial, you can keep them. Any and all plots held for sale cannot be kept.
6. Animals and their accoutrement.
You are able to keep ten hogs, twenty sheep, five milk cows and their calves, two horses and one hundred chickens. Animal accoutrement is limited to two bridles, for the horses, and forage. Forage is defined as enough for the exempt animals for one year. Worried about Sparky, an animal of more domestic purpose? As a note, we’ve never had a problem keeping our clients’ Golden Retrievers.
The bankruptcy court cannot take all of your monetary assets. You are entitles to keep 75% of your wage earnings in the last 90 days. Further, alimony, retirement plans established after 1987, any earned tax credit, interest in an established Oklahoma College Savings Plan and interested in a lawsuit up to $50,000 are exempt.
Don’t see an item that you are interested in keeping after your bankruptcy? Call us; walk in; we love a challenge.