OKLAHOMA BANKRUPTCY LAW

Oklahoma Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Oklahoma Bankruptcy Statistics: In Oklahoma, in 2009, 14,209 bankruptcies were filed. Business bankruptcies accounted for 594 or 4.18% and personal bankruptcies accounted for 13,615 or 95.82% of the total filings.

Oklahoma State Bankruptcy Exemptions

Homestead

The home (“homestead”) exemption is for unlimited value, but the property cannot be greater than 1 acre in a city, town, or village, or greater than 160 acres elsewhere. However, the exemption is limited to $5,000 if more than 25% of the total square footage of the property is used for business purposes. A homestead may be rented as long as the debtor does not acquire another residence. Oklahoma defines “homestead” to include real property, or manufactured homes.

Personal Property

The following expenses or items are exempt in their entirety in Oklahoma:

1. Books and pictures
2. Burial plots
3. College savings plan interest
4. Health aids
5. Household and kitchen furniture
6. Personal computer and related equipment
7. Deposits in an Individual Development Account (IDA)
8. Federal earned income tax credit
9. Food and seed for growing for at least 1 year

The following expenses or items are exempt up to a specified limit in Oklahoma:

1. Motor Vehicle is limited to $7,500
2. Livestock for personal or family use-5 dairy cows and calves under 6 months, 100 chickens, 20 sheep, 10 hogs, 2 horses, bridles and saddles, forage and feed to last 1 year
3. Clothing is limited to $4,000
4. Guns for household use are limited to $2,000

Pension

The following individuals’ and their survivors’ pension benefits are exempt when filing for bankruptcy in Oklahoma:

1. County employees
2. Disabled veterans
3. Firefighters
4. Judges
5. Law enforcement employees
6. Police officers
7. Public employees
8. Teachers

The following pension types are exempt or partially exempt when filing for bankruptcy in Oklahoma:

1. Tax exempt benefits
2. ERISA qualified benefits
3. IRAs, Roth IRAs and Education IRAs
4. Keoghs

Insurance

The following insurance types are entirely or partially exempt when filing for bankruptcy in Oklahoma:

1. Life, health, accident and mutual benefit insurance proceeds and cash value (if there is a clause included which prohibits proceeds from being used to pay the beneficiary’s creditors)
2. Group life insurance policy or proceeds
3. Prepaid funeral benefits placed in trust
4. Fraternal benefit society
5. Limited stock insurance benefits
6. Annuity benefits and cash value
7. Assessment or mutual benefits

Public Benefits

The following public benefits are exempt when filing for bankruptcy in Oklahoma:

1. Crime victims’ compensation
2. Unemployment compensation
3. Workers’ compensation
4. Social Security
5. Public assistance

Tools of the trade

This is a separate exemption. The following items have been considered tools of the trade in the state of Oklahoma, and exempt up to $10,000:

1. Farm implements
2. Tools
3. Books
4. Apparatus

Wages

In Oklahoma, 75% of wages earned in the 90 days prior to filing for bankruptcy are exempt.

Miscellaneous The following miscellaneous benefits are exempt when filing for bankruptcy in Oklahoma:

1. Alimony
2. Child Support
3. Beneficiary’s interest in a statutory support trust
4. Liquor license
5. Property belonging to a business partnership

Wildcard: No.

Federal Exemptions: No, debtors are not allowed to take federal exemptions when filing for bankruptcy in Oklahoma.

Oklahoma Bankruptcy Court:

United States Bankruptcy Court, Eastern District of Oklahoma

United States Bankruptcy Court, Northern District of Oklahoma

United States Bankruptcy Court, Western District of Oklahoma