Exempt Assets

FAQ: What Are Exempt Assets in Bankruptcy
Bankruptcy Lawyers for Over 40 Years

We have attempted to answer the most frequently asked questions about bankruptcy in Oklahoma that our clients have asked us before. We hope this will be helpful.

This is not intended as legal advice because bankruptcy is complicated and depends on the specific circumstances unique to every Debtor. If you are considering a bankruptcy, call us toll free at (877) 886-5955 for a free consultation so we can provide legal advice tailored to your specific unique situation. There is no obligation and the call is confidential.

Q: What Are Exempt Assets in Bankruptcy?

A: One of the most important benefits to a Debtor in Bankruptcy is Exempt Assets. Simply, a Debtor normally can retain Exempt Assets after filing bankruptcy; however, there are exceptions that you must be aware of discussed below.

This list is only intended to provide a general idea of what property you may be able to retain after filing bankruptcy. However, this list is subject to limitations and qualifications that must be discussed with a competent bankruptcy lawyer before you file for bankruptcy and before you transfer, mortgage or acquire any of the following. If you fail to do so, your rights may be impaired. Plainly said: you can still lose such property without competent legal advice.

Oklahoma Homestead Exemption

Real property or manufactured home to unlimited value; property cannot exceed 1 acre in city, town, or village, or 160 acres elsewhere; $5,000 limit if more than 25% of total sq. ft. area used for business purposes; okay to rent homestead as long as no other residence is acquired, 31 Okla. Stat. Ann. § 1 (A)(1), 31 Okla. Stat. Ann. § 1 (A)(2), 31 Okla. Stat. Ann. § 2. <<Go to Top>>

Oklahoma Insurance exemptions

Annuity benefits & cash value, 36 Okla. Stat. Ann. § 3631.1.
Assessment or mutual benefits, 36 Okla. Stat. Ann. § 2410.
Fraternal benefit society benefits, 36 Okla. Stat. Ann. § 2718.1.
Funeral benefits prepaid & placed in trust, 36 Okla. Stat. Ann. § 6125.
Group life policy or proceeds, 36 Okla. Stat. Ann. § 3632.
Life, health, accident, & mutual benefit insurance proceeds & cash value, if clause prohibits proceeds from being used to pay beneficiary's creditors, 36 Okla. Stat. Ann. § 3631.1.
Limited stock insurance benefits 36 Okla. Stat. Ann. § 2510. <<Go to Top>>

Oklahoma Pensions & Retirement Savings Exemptions

The new federal bankruptcy law now automatically exempts a virtually all tax-exempt pensions and retirement savings accounts from bankruptcy, 11 U.S.C. § 522(b)(3)(C).
The law protects any pension or retirement fund that qualifies for special tax treatment under Internal Revenue Code §§ 401, 402, 403, 408, 408A, 414, 457, or 501(a).
County employees, 19 Okla. Stat. Ann. § 959.
Disabled veterans, 31 Okla. Stat. Ann. § 7.
ERISA-qualified benefits, IRAs, Roth IRAs, Education IRAs & Keoghs, 31 Okla. Stat. Ann. § 1 (A)(20),(24).
Firefighters, 11 Okla. Stat. Ann. § 49-126.
Judges, 20 Okla. Stat. Ann. § 1111.
Law enforcement employees, 47 Okla. Stat. Ann. § 2-303.3.
Police officers, 11 Okla. Stat. Ann. § 50-124.
Public employees, 74 Okla. Stat. Ann. § 923.
Tax exempt benefits, 60 Okla. Stat. Ann. § 328.
Teachers, 70 Okla. Stat. Ann. § 17-109. <<Go to Top>>

Oklahoma Auto/Truck Exemptions (aka Motor Vehicle)

Motor vehicle to $7,500, 31 Okla. Stat. Ann. § 1 (A)(13). <<Go to Top>>

Oklahoma Personal Property Exemptions

This category covers your non-retirement bank accounts, and most of your other personal possessions, other than your house.

Books, portraits, & pictures, 31 Okla. Stat. Ann. § 1 (A)(6).
Burial plots, 8 Okla. Stat. Ann. § 7, 31 Okla. Stat. Ann. § 1 (A)(4).
Clothing to $4,000, 31 Okla. Stat. Ann. § 1 (A)(7).
College savings plan interest, 31 Okla. Stat. Ann. § 1 (A)(24).
Deposits in an IDA (Individual Development Account), 31 Okla. Stat. Ann. § 1 (A)(22).
Food & seed for growing to last 1 year, 31 Okla. Stat. Ann. § 1 (A)(14), 31 Okla. Stat. Ann. § 1 (A)(17).
Guns for household use to $2,000, 31 Okla. Stat. Ann. § 1 (A)(14).
Health aids, 31 Okla. Stat. Ann. § 1 (A)(9).
Household & kitchen furniture, personal computer & related equipment, 31 Okla. Stat. Ann. § 1 (A)(3).
Livestock for personal or family use: 5 dairy cows & calves under 6 months; 100 chickens; 20 sheep; 10 hogs; 2 horses, bridles, & saddles; forage & feed to last 1 year, 31 Okla. Stat. Ann. § 1 (A)(10),(11),(12), (15),(16),(17).
Personal injury & wrongful death recoveries to $50,000, 31 Okla. Stat. Ann. § 1 (A)(21).
Prepaid funeral benefits, 36 Okla. Stat. Ann. § 6125 (H).
War bond payroll savings account, 51 Okla. Stat. Ann. § 42.
Wedding and anniversary rings to $3,000, 31 Okla. Stat. Ann. § 1 (A)(8). <<Go to Top>>

Oklahoma Public Benefits Exemptions

Crime victims' compensation, 21 Okla. Stat. Ann. § 142.13.
Federal earned income tax credit, 31 Okla. Stat. Ann. § 1 (A)(23).
Public assistance, 56 Okla. Stat. Ann. § 173.
Social Security, 56 Okla. Stat. Ann. § 173.
Unemployment compensation, 40 Okla. Stat. Ann. § 2-303.
Workers' compensation, 85 Okla. Stat. Ann. § 48. <<Go to Top>>

Oklahoma Tools of Trade Exemptions

These are the things you use to make a living. An automobile or truck can be a tool of trade if you use it in your work; however, travel or commuting to work doesn't work. Nevertheless, if driving is a necessary component of transacting your business, you can claim your vehicle is a tool of trade.

Implements needed to farm homestead, tools, books, & apparatus to $10,000 total, 31 Okla. Stat. Ann. § 1 (A)(5), 31 Okla. Stat. Ann. § 1 (C). <<Go to Top>>

Oklahoma Wage Garnishment Laws

75% of wages earned in 90 days before filing bankruptcy; bankruptcy judge may allow more if you show hardship, 12 Okla. Stat. Ann. § 1171.1, 31 Okla. Stat. Ann. § 1 (A)(18), 31 Okla. Stat. Ann. § 1.1. <<Go to Top>>

Miscellaneous other exemptions for Oklahoma

This category covers items like partnership property, alimony & support payments.

Alimony, child support, 31 Okla. Stat. Ann. § 1 (A)(19).
Beneficiary's interest in a statutory support trust, 6 Okla. Stat. Ann. § 3010.
Liquor license, 37 Okla. Stat. Ann. § 532.
Property of business partnership, 54 Okla. Stat. Ann. § 1-504. <<Go to Top>>

Q: What things impair my ability to keep Exempt Assets in Bankruptcy?

A: Nearly all Exempt Assets have limitations including but not limited to the following:

New Federal Residency Requirement

Under the new bankruptcy law, you must be have lived in the state for at least 40 months (three years and four months) before you can claim any homestead protection greater than $155,675. (If your state's exemption offers less than this amount, the law is irrelevant to you.) The law is poorly worded but seems to say that if you move from one home to another in the same state, you can claim that state's homestead protection.

For example if you've moved to Oklahoma in the last 40 months, this applies to you and your homestead exemption is limited to no more than $155,675. <<Go to Top>>

Liens and Mortgages

Generally if you have given a bank or other lender a lien or mortgage on any of your Exempt Assets, you must pay the loan tied to the lien or mortgage; otherwise, you may lose that Exempt Asset. Again there can be exceptions to this exceptions so you need to consult with a competent bankruptcy lawyer to see if this may apply to you. <<Go to Top>>

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FAQ: What Are Exempt Assets in BankruptcyBankruptcy Lawyers for Over 40 Years

FAQ: What Are Exempt Assets in Bankruptcy
Bankruptcy Lawyers for Over 40 Years