Oklahoma Bankruptcy HelpChapter 7 Income Limits in Oklahoma

bankruptcy

All persons seeking bankruptcy relief in Tulsa Oklahoma must meet certain requirements in order to file. Bankruptcy protection is governed by federal law and these requirements are imposed by those federal laws. One of those requirements pertains to the income of the person or persons seeking relief under Chapter 7. Chapter 7 pertains to an individual or married couple’s liquidation of debt. In order to obtain relief under Chapter 7, you must meet certain income limits.

Chapter 7 Income Limits

Chapter 7 income limits mandate that your income be within a certain range. You cannot make too much money and you cannot make too little money. Both extremes will make a party ineligible for relief under bankruptcy laws.

In bankruptcy court, the trustee makes sure that your income is within a certain range in comparison to others in your area. So if you live in Tulsa Oklahoma, your income will be compared to others within Oklahoma. This is done using what is called a “means test.” The means test is a standard form that you must fill out.

If you need have questions about Chapter 7 bankruptcy limits it may be wise to contact an Oklahoma bankruptcy attorney for help.

Understanding the Means Test

Income is complicated. Income can be affected by many variables beyond a person’s wages. Things such as promotions and demotions, job loss, business fluctuations, medical expenses, and other legal obligations to family members such as child support.

Your household income is estimated over a 6-month period. 11 U.S.C. § 101(10A). If you are married, the household income will include your income and your spouse’s income unless you are legally separated from your spouse. There are a number of things that can affect your income limit numbers for bankruptcy purposes, such as the number of people in your household.

In Oklahoma in May 2022, those upper household income limit numbers were as follows:

  • 1 Person $51, 435
  • 2 people $66,786
  • 3 people $71,3097
  • 4 people $ 83, 157

These income limits change periodically, so be sure and check with your Tulsa Bankruptcy attorney to determine if your income is within the stated limits.

There is a Second Part to the Means Test

Mandatory and allowable expenses are subtracted from your income. These expenses include:

  • Employment union dues, retirement plans, and uniforms
  • Health and disability insurance premiums
  • Taxes
  • Child and daycare expenses
  • Life insurance premiums
  • Secured debt payments for house and automobile
  • Alimony and child support payments
  • Certain charitable contributions

There are other expenses that may be deducted from your income under some circumstances. Your attorney can help you understand whether you may deduct such expenses as:

  • Household supplies
  • Clothing
  • Food
  • Personal care services and products
  • Housing and utility expenses
  • Transportation expenses
  • Out-of-pocket healthcare expenses

Mistakes in these allowable income limits are common when a bankruptcy candidate attempts to calculate these figures on their own. Errors can invalidate an otherwise acceptable application. It is prudent to get the help of an experienced bankruptcy attorney in the Tulsa area when contemplating bankruptcy.

Free Consultation with a Chapter 7 Bankruptcy Attorney

Financial Freedom Bankruptcy Lawyers of Tulsa offer free consultations to help debt-burdened Oklahomans discover the best approach to their financial crisis.  Call us at (918) 786-9600 to start your free consultation today. You may also contact us using the contact form button on this page to ask a professional Tulsa bankruptcy attorney your personal questions.

Tags: , , ,

print Financial Freedom Bankruptcy Lawyers of Tulsa page