When you declare bankruptcy in Oklahoma, you will either be filing Chapter 7 or Chapter 13. Chapter 7 will expunge all or most of your old debts and you will no longer be accountable for them. It will, however, stay on your credit report for the next 10 years. Chapter 13 bankruptcy is an alternative that will not expunge your old debts, but allow you to work with your creditors in a way that will allow you to pay off all of your debts within the next three to five years. This method is most often used by individuals who are in danger of losing their homes.
When you file for bankruptcy in Oklahoma, you will have to take the means test if you wish to file for Chapter 7. If you have an annual income that is more than the median annual income for the state of Oklahoma, then you are not eligible for Chapter 7 and therefore must settle for Chapter 13 bankruptcy. When filing for bankruptcy, you and your attorney will have to gather up certain paperwork that includes a list of your creditors and what you owe each of them, how much you make, the source of your income, and a detailed list of all of your major property. This information is then used to fill out your petition and schedules for your bankruptcy.
After you have submitted your paperwork for bankruptcy in Oklahoma, you will have a hearing with your creditors known as a 341 hearing. This meeting will be held within 20 to 40 days after you have filed for bankruptcy. During this meeting, you will be under oath and will be asked a series of questions by your creditors and by the trustee. The meetings are pretty much formulaic, and you don’t really have to worry about your creditors being hard on you. They have been through this plenty of times before, after all.
The biggest difference in bankruptcy law between the states if the exemptions that you are allowed. When you declare property as exempt, then your creditors may not take it from you to pay off your debt. The following exemptions are allowed when you declare bankruptcy in Oklahoma: homestead, furniture, burial plot, wages, pensions, retirement plans, alimony, books, portraits, up to 100 chickens, 10 hogs, one gun, and one motor vehicle up to $7,500.