Posts Tagged ‘Fitness’

Oklahoma Bankruptcy Law – Oklahoma Bankruptcy Exemptions

April 21st, 2022

This article applies to Oklahoma bankruptcy in a very general sense. This article is no substitute for discussing your situation with a Oklahoma bankruptcy attorney. Every situation is unique and many of the general rules have exceptions.

Individual Debtors Filing for Oklahoma Bankruptcy May Only Use Exemptions Provided by Oklahoma State Law

Individuals filing for bankruptcy can generally use the bankruptcy exemptions they may be entitled to under the laws of the state of their domicile, and under federal laws other than bankruptcy. 11 U.S.C. section 522(b)(2). In a few states, individual debtors can also use exemptions set out in section 522(d), but this is only allowed in states that have not enacted “opt out” legislation under section 522(b)(1). Section 522(b)(1) allows states to preclude an individual debtor in that state from using section 522(d). The majority of states have done this.

Oklahoma is one of the majority of states having enacted “opt out” legislation. Because of this, individual debtors filing for bankruptcy in Oklahoma are only allowed to use the exemptions found in Oklahoma state law and federal laws other than the Bankruptcy Code. Okla. Stat. tit. 31, section 1(B).

Oklahoma Bankruptcy Exemptions

The following list is a very general overview of the Oklahoma bankruptcy exemptions which most often affect individual debtors. This list is not meant to be exhaustive and is no substitute for a consultation with a Oklahoma bankruptcy attorney. All citations are to the Oklahoma Statutes, the formation Title(number)-Section(number).

Homestead Exemption

An individual may exempt a home, but only if the home is his or her personal residence. T31 – 1(A)(1). This includes manufactured homes. 31 – (1)(A)(2).
When the homestead is located outside of any city or town, it is limited to a size of 160 acres. 31 – 2(A). When the homestead is located within a city or town, the homestead may not exceed one (1) acre of land. 31 – 2(C). If more than twenty-five percent (25%) of the total square foot area of the home and improvements is used for a business, the homestead exemption amount is capped at five thousand dollars ($5,000). Id.
However, the homestead exemption will not apply when the debt is due for the purchase money of the homestead, or a portion of the purchase money; for taxes or a tax lien on the homestead; and for debts on work and material used in improvements to the property. 31 – 5(1), (2), and (3).
Furniture

An individual may exempt “all household and kitchen furniture” provided it is held primarily for personal, family, educational, or household use by the individual debtor or his or her dependents. 31 – 1(A)(3). This includes a personal computer and related equipment. Id.
Tools of the Trade and Professional Equipment

An individual may exempt any tools, apparatus, or books used to conduct a trade or profession by either the individual debtor or the debtor’s dependent, but only up to an aggregate value of $10,000. 31 – (1)(A)(5).
Pictures and Books

An individual may exempt all “books, portraits, and pictures” which the debtor holds primarily for his or her personal use, for use by the debtor’s family, or use by the debtor’s dependent. 31 – (1)(A)(6).
Clothing

An individual may exempt clothing for either the debtor’s personal use, family use, or use by the debtor’s dependent; but only up to an aggregate value of $4,000. 31 – 1(A)(7).
Wedding and Anniversary Rings

An individual may exempt wedding and anniversary rings, but only up to $3,000 in value total. 31 – 1(A)(8).
Professionally Prescribed Health Aids

An individual may exempt all professionally prescribed health aids, whether for the debtor or the debtor’s dependent. 31 – 1(A)(9). There is no value cap on this exemption, but the health aid must be proscribed by a health professional to qualify.
Motor Vehicle

An individual may exempt his or her interest in one motor vehicle, up to $7,500 in value. 31 – 1(A)(13).
Firearms

An individual may exempt up to $2,000 worth of firearms, provided the firearms are held primarily for personal, family or household use. 31 – 1(A)(14). This means firearms held as collectibles, or for trade or sale, are not eligible for exemption.
Wages and Income

An individual may exempt seventy-five percent (75%) of all current wages or earnings he or she receives for personal or professional services which have been earned for the ninety (90) day period preceding the bankruptcy filing (but not in proceedings to garnish wages for child support owing). 31 – 1(A)(18); and 12 – 1171.1(B).