Filing for bankruptcy in Oklahoma is an effective way to start fresh by eliminating much of your debt. However, many people seeking debt relief often worry that bankruptcy may cost them their home. In Oklahoma, you will not lose your home in Chapter 7 bankruptcy.
When you file for bankruptcy, most of your property becomes a part of a bankruptcy estate. From this estate, the bankruptcy trustee can sell all of your nonexempt assets to pay off your creditors. In Oklahoma, your home is a fully exempt asset, and therefore cannot be sold or transferred to a creditor.
Although it’s possible for the trustee to sell vacation homes, and other real estate that you don't live in, there is no value in selling the property if there is no equity. If your outstanding mortgage balance is greater than your property's value, there will be no money left for the trustee to pay creditors.
The Oklahoma Homestead Exemption
Oklahoma has a terrific homestead exemption for Chapter 7 and Chapter 13 filers. As long as you use at least 75% of your home as your primary residence, you can exempt the entire value of your home from the bankruptcy estate. This exemption is automatically applied, meaning you are in no danger of losing your primary residence through bankruptcy alone. However, it’s critical that you continue to make mortgage payments, as foreclosure is still a possibility.
The Oklahoma Motor Vehicle Exemption
Your transportation is also protected from the court trustee and creditors. Although the coverage this exemption provides is not as extensive as the homestead exemption, it will still offer tremendous protection for your car. Furthermore, an experienced bankruptcy attorney can work to get additional exemptions if your car is required for work, underscoring the importance of quality counsel.
Call Our Oklahoma City Bankruptcy Lawyer Today
If you’re seeking debt relief in Oklahoma City, trust our skilled team at Alexander Hilton & Associates. Our firm has focused solely on bankruptcy cases for more than two decades, giving us a unique level of knowledge and experience. We take great pride in our clients’ satisfaction and seek to resolve your case in your best interests when you hire our firm.