Oklahoma bankruptcy
There are many persons, corporates, companies etc that file for the bankruptcy protection in Oklahoma due to one reason or the other every year. The application for the bankruptcy has to be invariably filed in the bankruptcy court in Oklahoma.
The Oklahoma Bankruptcy court examines the application that has been filed by the debtor along with all the supporting documents and then the case proceeds further. There are of course different provisions of Oklahoma bankruptcy law under which the application for the bankruptcy protection can be filed. The bankruptcy debtor also gets exemptions in Oklahoma. Let us first discuss about the various provisions of the Oklahoma bankruptcy law under which a person, company etc can file the application for the bankruptcy.
The Oklahoma Bankruptcy Law
As per the bankruptcy law in Oklahoma, a person can file for the Oklahoma Bankruptcy protection under the various provisions, depending upon the type of repayment he chooses for its creditors. The various provisions of the Oklahoma bankruptcy law are:
Chapter 7 provision: This chapter is basically meant for those persons, companies etc that wishes to repay the various creditors it has by the sale of the various assets it has. It is also not that the person would be forced
to sell all the assets he has. As per the Oklahoma Bankruptcy law, there are some exemptions that have been provided to the residents of Oklahoma. Thus, only the non-exempt assets of the bankruptcy debtor can be sold by the bankruptcy court. For the sale of the non-exempt assets, the court appoints the bankruptcy trustee whose job is to sell the assets quickly and in a way that the maximum number of people benefit from it. This provision of the bankruptcy law is mostly resorted by those persons, companies etc that wishes to start afresh after its all the creditors have been repaid fully. It is also to be understood here that the bankruptcy trustee closes the case only when all the creditors of the debtor have been fully repaid. On closure of case, the bankruptcy trustee also abandons all the remaining non-exempt assets to the debtor.
Chapter 11 provision: This provision of the Oklahoma Bankruptcy law is basically meant for the companies, corporate etc that wishes to repay their different creditors over a period of time, but not by selling any of the assets. The repayment is made from the earnings of the company etc. Thus, it is very necessary that all the corporate, companies etc that wishes to file for the bankruptcy protection under this provision of the Oklahoma bankruptcy law should have a steady earnings. At the time of filing the application for the bankruptcy protection, the company has to submit a reorganization plan also, following which it intends to repay its all the creditors etc. Also, the company has to provide the total outstanding comprising the secured as well as the unsecured debtors and the total amount should not be more than as specified in the chapter 11 provision of the Oklahoma bankruptcy law. The company should also have the earning as specified in the provision. As far as the appointing the bankruptcy trustee is concerned, the bankruptcy court of Oklahoma appoints a bankruptcy trustee in this case also, though his role is quite different here. The bankruptcy trustee supervises all the progress made by the company and assures the court that the creditors are being repaid as per the plan. All the decisions that have been taken by the company during this reorganization plan have to be approved by the bankruptcy court also.
Chapter 13 provision: This provision is for all those persons that wish to repay their various creditors by means of the repayment program. The criterion for filing the application under this provision is that a person should have the disposable income for repaying his various creditors. The disposable income is the amount arrived at by deducting the entire amount towards the food, shelter etc from the income of the person.
As far as the bankruptcy courts are concerned, there are three bankruptcy courts in Oklahoma and are known as the Oklahoma Eastern, Northern and Western District bankruptcy courts. These are located at Okmulgee, Tulsa and Oklahoma City respectively. The jurisdictions of all these courts are well defined and thus, each of these courts have different counties under their jurisdiction.
Given above is the brief description of the Oklahoma bankruptcy law and the bankruptcy courts.
Exemptions in Oklahoma
As far as the exemptions in the Oklahoma are concerned, a person gets exemptions if he files for the bankruptcy protection under the chapter 7 of the Oklahoma bankruptcy law. These exemptions enable a person to retain all the assets that are exempted by the court even if the court appoints the bankruptcy trustee for selling the assets. The exemptions also include the various other benefits and the exemptions in case of assets are calculated on the basis of value.
A person in Oklahoma can easily keep the homestead that comprises his house and the surrounding place, to be kept easily. As far as the insurance is concerned, a person can easily keep the fraternal benefit society benefits, group life proceeds and the limited stock insurance benefits as per the Oklahoma bankruptcy law. The alimony and the amount towards the child support are also permissible in Oklahoma. The property of a person pertaining to the business partnership can also be kept according to the bankruptcy law. The pensions of county employees, firefighters, police officers, teachers etc are also exempt in Oklahoma. So far as the personal property is concerned, a person can easily keep clothing for himself and his dependants up to $4000, motor vehicle up to $3000, burial plots, furniture, health aids etc as per the Oklahoma bankruptcy law. As regards to different types of compensation, the crime victims compensation, social security, unemployment compensation and the workers compensation is also exempt as per the Oklahoma bankruptcy law. There is no wild card exemption in Oklahoma and a person can keep the tools of trade worth $5000 as per the Oklahoma bankruptcy law.
So, enough bankrutpcy provisions are there
Thus, it can be said that there are all the enough bankruptcy provisions in Oklahoma for a person, company etc that wishes to file for the bankruptcy protection. The exemptions in Oklahoma also enable a person to keep various assets with him despite filing for the bankruptcy.
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