Exemptions in Chapter 7 Bankruptcy

Bankruptcy Attorney in Oklahoma City, Oklahoma

It is of no doubt that filing for bankruptcy can help you resolve your financial hardships. Unmanageable debts can lead to dire consequences; you may be unaware that your current financial problems can be resolved by filing for Chapter 7 bankruptcy. Like any other state, Oklahoma also has its own set of bankruptcy exemptions you can use to retain your properties. This includes, but not limited to, car, home, retirement plan, and among other things.

As bankruptcy promises a fresh start, the procedure is undoubtedly complex. If you have read several articles and found out that Chapter 7 is suitable for you, you must also consider how bankruptcy exemptions in Chapter 7 work. Thus, it is always advisable to consult with an experienced Oklahoma CIty bankruptcy attorney.

Since 2009, Scott Harris Law has been helping thousands of individuals and families in Oklahoma file for bankruptcy, foreclosure defense, and debt negotiation. Scott Harris is a passionate bankruptcy attorney who takes the time to listen to and understand your situation in order to provide wise legal remedies. With his extensive years of experience in handling complex bankruptcy cases, your financial situation will be in good hands if you choose our legal team.

How Exemptions Work?

chapter 7 bankruptcy exemptions Oklahoma It takes time and effort to determine which properties you are legally entitled to keep if you file Chapter 7 bankruptcy in Oklahoma. It is both your obligation and your benefit to list all of your exempted properties. If you do not claim any property as exempt, you will automatically lose it. 

Exempting property is necessary, whether prior to or during your filing of bankruptcy. Nonexempt properties are those that the bankruptcy trustee can legally seize and sell in order to compensate your creditors. As a result, the more property you can claim, the better your advantage.

How to Use Oklahoma Exemptions in Chapter 7 Bankruptcy?

It is a well-settled rule in Oklahoma that you can only file bankruptcy after residing in the state for at least 180 days. However, in bankruptcy exemptions, you are only allowed to use them if you have lived at least 730 days. Otherwise, you will use your previous state’s exemptions.

For instance, you were not in any state for two years prior to your bankruptcy filing. In this case, you are required to use the bankruptcy exemptions of the state where you resided for most of the 180 days immediately prior to your petition. (11 U.S.C. § 522(b)(3)(A).)

Common Bankruptcy Exemption in Oklahoma

Even though Chapter 7 federal bankruptcy exemptions cannot be utilized in Oklahoma, you must keep in mind that spouses who have the same interest in a property are allowed to double the corresponding exemption. Bankruptcy petitioners are allowed to have the following:

  • Make use of the list of federal nonbankruptcy exemptions. 
  • Safeguard tax credits, stimulus payment, child credits, and among others using recovery refund exemption; and
  • Retain tax-exempt retirement benefits, including money purchase plans, profit-sharing plans, SIMPLE IRAs, SEP, and benefit plans. This also includes Roth and traditional IRAs up to $1,512,350 per individual. 

Homestead Exemption in Oklahoma

In comparison to other countries, Oklahoma’s homestead exemption system is considered generous. In this system, you can exempt an infinite amount of equity in your home or manufactured home as long as it is not your primary residence. Other properties that are not larger than half an acre in a municipality, or less than 160 acres, are also eligible for homestead exemption.

Since the homestead exemption in Oklahoma is so considerate, you have to own property for at least 1,215 days before filing for bankruptcy. If you do not own any, your homestead exemption will be limited and determined by federal law.

Vehicle Exemption in Oklahoma

In the Oklahoma bankruptcy system, you are allowed to exempt vehicles up to $7,500 in equity, such as motorcycles, cars, trucks, and other motor vehicles.

Personal Property

The following sorts of personal-property can be exempted in Chapter 7 Bankruptcy in Oklahoma:

  • pictures, portraits, books
  • burial plots
  • clothing up to $4,000
  • interest of college savings plan
  • deposits from Individual Development Account
  • a year’s worth of seed and food for growing crops
  • household use guns amounting to $2,000
  • health medicines and other aids prescribed by medical professional
  • household furniture, personal desktop, and other relevant equipments
  • family use livestock: 20 sheeps, 100 chickens, 2 horses, 10 hogs, feed to live one year
  • wrongful death and personal injury damages amounting to $50,000
  • prepaid benefits of funeral
  • war bond savings
  • anniversary and wedding rings amounting $3,000


  • Roth IRAs, Keoghs, Education IRAs, and Erisa-qualified benefits.
  • County employees
  • Firefighters
  • Disabled veterans
  • Judges
  • Police officers
  • Law enforcement employees
  • Public employees
  • Teachers
  • Tax-exempt benefits

Public Benefits

  • Compensation for crime victims
  • Public assistance
  • Income tax credit
  • Compensation for unemployment
  • Social Security
  • Worker’s Compensation

Tools of Trade

You can safeguard implements necessary for your farmland from your homestead amounting to $10,000. This includes books, tools, and other required equipment for your profession or business.


75% of your 90 days of earned wages prior to bankruptcy filing can be exempted. The judge in the bankruptcy court may permit you to retain more than the stated percentage if you can prove financial hardship.

Life Insurance

The life insurance benefits you can exempt are as follows:

  • Cash value and annuity benefits
  • Evaluation of mutual benefits
  • Society benefits and fraternal benefits
  • Funeral benefits, only if they are placed and prepaid in a trust.
  • Group life proceeds or policy
  • Cash value and insurance proceeds of an accident, health, mutual benefit, and life insurance only if the contract provision disallows them from being used as compensation for creditors.
  • Limited amount of stock insurance benefits.

Other Exemptions in Oklahoma

  • Child support and alimony
  • Interest of beneficiary in statutory support trust.
  • Business partnership property
  • Liquor license

Call our Bankruptcy Attorney in Oklahoma City Now!

The process of exempting your properties in Chapter 7 bankruptcy is quite difficult to deal with. It is necessary to be familiar with the complicated bankruptcy laws. As you just saw, there are a lot of potential properties that you can exempt with Chapter 7. The only way to be certain of your steps when filing for Chapter 7 bankruptcy is to consult with a skilled bankruptcy attorney.

Contact Scott Harris Law today for assistance with Chapter 7 bankruptcy exemptions in Oklahoma. We have been assisting thousands of clients in getting out of debt for over a decade. We have numerous successful bankruptcy filings, thus we are confident that your case will be handled diligently. 

Other than Chapter 7 bankruptcy, we also handle credit card debt, debt negotiation, student loan debt, and foreclosure defense. Schedule a free legal consultation now!

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