Often, people who want to file for bankruptcy are faced with the concern that if they bring a bankruptcy court, they will take both their personal property and the home they live in. Nothing could be further from the truth. This false belief causes many honest people to avoid bankruptcy and continue living their lives with crushing debts. The reality of the situation is that the Federal Bankruptcy Code allows you to keep many of your assets, including your home, through the use of so-called bankruptcy exemptions.
Exceptions are provisions enshrined in the federal and various bankruptcy laws of the state. They state that certain types of property should be excluded from the bankruptcy process. Each country has the right to choose what is, and not is, to be covered as assets released. When deciding which ones apply to you, the first thing you need to understand is what state law applies to your case. This may not necessarily be your current state of residence if you have recently moved. Federal law has a provision for determining a bankruptcy residence. The court looks at where you lived in the previous 180 days before the day you filed and uses the rules of the country where you lived most of the time. To illustrate, if you file your case on July 1st. On February 2, that year, you moved from Arkansas to Oklahoma. You must have stayed in Oklahoma for most of 180 days. That's why Oklahoma bankruptcy rules apply to your case. But suppose you moved on May 12th. In this case, only the rules of the State of Arkansas will apply. Once you have established the applicable state law, you should find out if you are limited to the state's insolvency rules or alternatively, if you also have the right to use federal rules. Some states, like Arkansas, allow debtors to choose between state and federal rules, which may be advantageous depending on the type of property you want to vacate. Some states, including Oklahoma, only require you to use state rules.
After determining what set of rules apply to your case, you can find out what kind of property is exempt from those rules. Oklahoma has a wide range of rules that cover common property types. Some of the most common exceptions used for bankruptcy in Oklahoma are:
1. Household: the debtor has the right to retain his principal place of residence, whether it is a dwelling-house on land which the debtor owns or a manufactured home.
2. Vehicle: A debtor (or any debtor in the event of a joint failure) is entitled to a down payment of up to $ 7,500 for a motor vehicle. This is the debtor's equity in the vehicle, so whatever the value of the vehicle is minus the outstanding debt associated with it.
3. Household goods and furnishings: The applicant is able to keep his household, including, but not limited to, kitchen utensils, a small personal computer, beds, TVs and more.
4. Rifles: The debtor has the right to keep up to $ 2,000 worth of weapons used primarily for personal, family, or domestic protection or sports. Weapons held solely for investment or non-personal, family or household purposes are not covered.
5. Clothing: Personal clothing for the debtor and the debtor's family is released.
6. Tools and Equipment: The debtor can hold the tools used for agriculture or a trade or profession (such as carpentry or power tools) for up to $ 10,000 in value.
7. Income: Your paychecks are yours without the creditor's claims. The check or savings account to which you deposit your paycheck is yours. Similarly, income tax credits are considered as released assets.
8. Jewelry: Your wedding rings and low value jewelry that does not exceed $ 3,000 in value.
9. Savings Savings: Funds deposited with an IRA or 401 (k) or other retirement savings device.
In Oklahoma, several other types of properties are covered in addition to those common ones listed above. In addition, your state may have different rules than Oklahoma. You should consult a bankruptcy lawyer in your country for more information.