Oklahoma Bankruptcy Laws

Approximate annual median: 1 person $46,819; 2 persons $59,283; 3 persons $65,671; 4 persons $77,934. Households below the median qualify for Chapter 7 without the full means test calculation.

Oklahoma protects unlimited equity in the debtor's homestead — one of the most generous homestead exemptions in the nation. Size limits: up to 1 acre within a city or town, or 160 acres (quarter section) in rural areas. The homestead must be the debtor's principal residence. Under federal law (BAPCPA), if the homestead was acquired within 1,215 days before filing, the exemption is capped at $189,050.

Oklahoma has opted out of the federal bankruptcy exemptions. Debtors must use Oklahoma state exemptions exclusively.

Motor vehicle: $7,500. Household goods/furnishings: $4,000. Clothing: all necessary. Tools of trade: $10,000. Firearms: $2,000. Health aids: no limit. No wildcard exemption.

Most retirement accounts are fully exempt, including 401(k), IRA, pension, and profit-sharing plans. Tax-exempt status under IRC § 401 or § 408 is generally sufficient for exemption.

Oklahoma follows the federal garnishment limit: the lesser of 25% of disposable earnings or the amount by which weekly earnings exceed 30 times the federal minimum wage ($217.50/week).