Most people are afraid to file for bankruptcy because they assume that they will end up losing their car, their home and other highly valued possessions of theirs. However, if you file for bankruptcy in Oklahoma, the state’s motor vehicle exemption can help you keep your car, truck or another automobile. In fact, with this exemption, you can protect $7,500 of vehicle equity when seeking bankruptcy protection, and $15,000 if you are married. Plus, with the help of our experienced attorneys at Oklahoma Legal Center, you may be able to protect even more car equity in some cases. If you are considering filing for bankruptcy in Oklahoma, your first course of action should be to contact a knowledgeable lawyer with experience filing Chapter 7 and Chapter 13 bankruptcies in the state. With our skilled attorneys on your side, you can work to keep your car when filing for bankruptcy.
Understanding Oklahoma’s Motor Vehicle Exemption
Overall, Oklahoma’s motor vehicle exemption plays a significant role in determining whether or not the bankruptcy trustee can repossess your automobile to repay your unsecured creditors in bankruptcy. One of the most important things to remember when filing for bankruptcy in Oklahoma, is that if all of your equity is covered by a car exemption, the bankruptcy trustee cannot take your vehicle in a Chapter 7 bankruptcy. If some equity remains unprotected however, you could be at risk of losing the automobile. In Chapter 13 bankruptcy, the value of your nonexempt property – which includes car equity not protected by a motor vehicle exemption – determines the minimum amount you are required to repay your unsecured creditors through your repayment plan.
Contact Our Reputable Lawyers for Help
Here is the general way that the vehicle exemption works in Oklahoma: if you own a car that is worth $19,000, and you owe the dealer $14,000 on the loan, there is $5,000 of equity in the vehicle. You can file Chapter 7 bankruptcy in this situation and fully protect the car using Oklahoma’s motor vehicle exemption. Oklahoma also has a “tools of the trade” exemption, which allows you to protect up to $10,000 of equity in property that you or your dependents use in your profession or trade. In other words, if you use your vehicle for work, such as in the case of a tow truck, you may be able to protect additional value using the vehicle exemption. Filing for bankruptcy in Oklahoma can be confusing and frustrating for anyone. With the help of our experienced attorneys, you can learn everything you need to know about filing for bankruptcy and protect as many of your possessions as possible.