Bankruptcy Exemptions in Oklahoma
What property you can keep in bankruptcy in Oklahoma: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Oklahoma has opted out of the federal bankruptcy exemptions. A person living in Oklahoma cannot use the federal exemption list in 11 U.S.C. Okla. Stat. tit. 31, § 1(B)
| State or federal exemptions | Oklahoma has opted out of the federal bankruptcy exemptions. A person living in Oklahoma cannot use the federal exemption list in 11 U.S.C. 522(d) and must use the exemptions allowed by Oklahoma law, unless an Oklahoma statute expressly permits otherwise. Source: Okla. Stat. tit. 31, § 1(B) |
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| Homestead exemption | The home that is the person's principal residence (including a manufactured home used as the principal residence) is exempt with no dollar limit in the statute. The homestead may be up to 1 acre inside a city or town, or up to 160 acres outside a city or town. At least 75% of the home's square footage must be used as the principal residence; if more than 25% is used for business, the exemption is limited to $5,000. Federal bankruptcy law (11 U.S.C. 522(p)) can cap a state homestead exemption for a home acquired within about 3.3 years before filing; that federal cap is not stated in the Oklahoma statute. |
| Car exemption | The person's interest in one motor vehicle, up to $7,500 in value. Source: Okla. Stat. tit. 31, § 1(A)(13) |
| Wildcard exemption | The Oklahoma exemption list does not include a general wildcard exemption that can be applied to any property; each exemption covers a specific type of property. Source: Okla. Stat. tit. 31, § 1(A) |
| Retirement accounts | Any interest in a retirement plan or arrangement that qualifies for tax exemption or deferral under federal law is exempt, including distributions. The statute lists examples such as defined contribution and defined benefit plans, IRAs and Roth IRAs, SEP and Keogh plans, 403(a) and 403(b) annuities, education IRAs, and state 457 deferred compensation plans. Tax-free rollovers between plans are not treated as fraudulent transfers. The exemption is subject to the Uniform Fraudulent Transfer Act. Source: Okla. Stat. tit. 31, § 1(A)(20) |
| Wages | 75% of current wages or earnings for personal or professional services earned during the last 90 days is exempt (different rules apply to garnishment for child support). A debtor who supports a family or other dependents may ask the court for a hearing to exempt more of their earnings because of undue hardship; a debtor with no dependents cannot claim this extra exemption. |
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FAQ
Can you use the federal bankruptcy exemptions in Oklahoma?
Oklahoma has opted out of the federal bankruptcy exemptions. A person living in Oklahoma cannot use the federal exemption list in 11 U.S.C. 522(d) and must use the exemptions allowed by Oklahoma law, unless an Oklahoma statute expressly permits otherwise.
How much home equity is protected in bankruptcy in Oklahoma?
The home that is the person's principal residence (including a manufactured home used as the principal residence) is exempt with no dollar limit in the statute. The homestead may be up to 1 acre inside a city or town, or up to 160 acres outside a city or town. At least 75% of the home's square footage must be used as the principal residence; if more than 25% is used for business, the exemption is limited to $5,000.
Can I keep my car in bankruptcy in Oklahoma?
The person's interest in one motor vehicle, up to $7,500 in value.
Does Oklahoma have a wildcard exemption?
The Oklahoma exemption list does not include a general wildcard exemption that can be applied to any property; each exemption covers a specific type of property.
Are retirement accounts protected in bankruptcy in Oklahoma?
Any interest in a retirement plan or arrangement that qualifies for tax exemption or deferral under federal law is exempt, including distributions. The statute lists examples such as defined contribution and defined benefit plans, IRAs and Roth IRAs, SEP and Keogh plans, 403(a) and 403(b) annuities, education IRAs, and state 457 deferred compensation plans. Tax-free rollovers between plans are not treated as fraudulent transfers. The exemption is subject to the Uniform Fraudulent Transfer Act.
Are wages protected in bankruptcy in Oklahoma?
75% of current wages or earnings for personal or professional services earned during the last 90 days is exempt (different rules apply to garnishment for child support). A debtor who supports a family or other dependents may ask the court for a hearing to exempt more of their earnings because of undue hardship; a debtor with no dependents cannot claim this extra exemption.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.