Oklahoma Bankruptcy HelpDo I Earn Too Much Money to File Chapter 7 Bankruptcy in Oklahoma?

A common question is, “Do I earn too much money to file Chapter 7 bankruptcy in Oklahoma?” In some cases, the answer is “yes.” Read on to learn how the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 changed the face of Chapter 7 bankruptcy in Oklahoma.

Means Testing and Chapter 7 Bankruptcy in Oklahoma

U.S. Congress enacted BAPCPA in part to prevent people with considerable financial means from declaring Chapter 7 bankruptcy in Oklahoma and other states.

Hence, the concept of means testing was born. Simply put, if you earn more than your state’s annual median income level (as determined by the U.S. Census Bureau), you are considered to have the financial means to partially repay your creditors in Chapter 13 bankruptcy.

The level by which you must test your means to repay your creditors depends on your household size.

As of December 2019, the annual median income levels for Oklahoma were as follows:

• One-person household: $48,322
• A household of two people: $58,436
• Household of three people: $65,400
• Household of four people: $75,326

Source: U.S. Trustee Program/Dept. of Justice

Means Testing Examples

So, if you and your husband have two children under the age of 18 and live in Tulsa, you are a four-person household for the purposes of bankruptcy.

Now, let’s say you and your husband bring in $57,000 a year between both of your jobs. Because the most recent annual median income level for a four-person Oklahoma household was $75,326, you and your husband qualify to file for Chapter 7 bankruptcy.

However, let’s consider a married couple with no children. They earn $65,000 a year through their jobs. Because the most recent figure for a two-person household was $58,436, they need special permission to file Chapter 7 bankruptcy in Oklahoma.

Special permission is hard to obtain. Basically, this couple will need to prove that they have extraordinary basic living expenses that require an exception. For bankruptcy purposes, things like vacations, cable TV, unlimited data on cell phone plans, and the like are not considered basic living expenses. Something like unexpected medical bills or perhaps a house fire might qualify for an exception, but such issues are best addressed by a qualified Tulsa bankruptcy attorney.

How We Can Help You

Our mission at Financial Freedom Bankruptcy Lawyers of Tulsa is to provide you the information and legal representation you need to climb out of debt and get back onto solid financial ground.

And with a discharge of your debt, you can often rebuild your credit rating much more quickly. When your debt exceeds your earnings and the value of disposable assets, it is time to consider how you could benefit from bankruptcy.

Every person’s financial situation is unique. So while bankruptcy tools are standardized, an experienced attorney can help guide you through the process so that you get the best possible debt relief for you.

Likewise, your Tulsa bankruptcy attorney can help you retain the assets that are important to you. You have worked hard for your home. You don’t want to lose it to debt.

Bankruptcy law and its forms are complicated, and mistakes will cost you. It is important to get the forms right the first time.

Your attorney can help you understand the process and what debts you will likely be required to pay, which debts are secured with collateral, and what property is exempt.

Because we have worked with so many clients, we know how to do the filings right and how to make the process efficient. Our goal is to make affordable debt relief in Tulsa available to anyone who needs to get out from under debt and back on top of their financial life.

Get out from under by calling for the help you need today. We are here to help.

Free Bankruptcy Planning: Tulsa Bankruptcy Lawyer

To get the best possible outcome in your case, you will need to set expectations for yourself and also understand your attorney’s expectations of you.

To receive your free initial bankruptcy analysis, call Financial Freedom Bankruptcy Lawyers of Tulsa today at 918-786-9600.