Bankruptcy doesn't need to be thought of in the negative light many have given it. In fact, the act of filing for bankruptcy was designed so that people facing financial struggles could get the fresh start they need. If you've been thinking about filing for bankruptcy in Oklahoma, it may be the solution you're looking for. This page shows you How to File for Oklahoma Bankruptcy.

The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

Bankruptcy proceedings take place in federal court because bankruptcy falls under the jurisdiction of federal law in every state across America. However, Oklahoma state law will still plays a role at certain points in the bankruptcy process. For example, it may decide which assets are exempt from forced liquidation and what the maximum dollar value of those assets is going to be.

Chapter 7 bankruptcy is a legal process created to free an individual facing high financial pressure from their unsecured debt obligations. However, Chapter 7 does not wipe out debt backed by security like car payments or mortgages. This type of bankruptcy is also known as a straight bankruptcy or liquidation bankruptcy. Some people approach the idea of filing for chapter 7 with caution because of what they've heard about forced liquidation, but sales of individual assets can often be avoided if you are able to pass the means test. Also, remember that a Chapter 13 restructuring is always available as another option if you decide that Chapter 7 isn't for you.

To pass the Chapter 7 Bankruptcy means test, you'll need to prove that your annual income is less than Oklahoma's state median. This figure is released by the Census Bureau and varies depending on the size of your household. The following maximum incomes apply in cases filed after March 15, 2009http://research.lawyers.com/Oklahoma/Bankruptcy-in-Oklahoma.html:

1. Single individual: $38,244
2. Two person family: $51,322
3. Three person family: $54,494
4. Four person family: $62,049
5. Five+ person family: $62,049 plus $6,900 for each extra individual over four

Once you've confirmed that you'll qualify to file for chapter 7, you'll need to enlist the help of a bankruptcy attorney so they can cover with you all of the exemptions that you have a right to claim. Though your lawyer will have the experience necessary to determine the best strategy for you, here are a just a few of the allowable exemptions in Oklahoma:http://research.lawyers.com/Oklahoma/Bankruptcy-in-Oklahoma.html

1. Wedding and anniversary rings to $3,000
2. Tools of trade to $10,000
3. 75% of wages during the last 90 days, unless needed for child support obligations
4. Clothing to $4,000
5. Household and kitchen furniture
6. Guns for household use to $2,000
7. Alimony, support, maintenance in an amount reasonably necessary for support
8. Livestock for personal or family use: 5 milk cows and their calves under 6 months old, 100 chickens, 2 horses, bridles and saddles, 10 hogs, 20 sheep and forage and feed to last 1 year
9. One motor vehicle to $7,500
10. Home or manufactured home if principal residence unless the property was acquired within the previous 1,215 days, and then the homestead exemption is limited to $125,000 in home equity under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
11. Funds in an individual retirement account
12. Prepaid funeral benefits