Q: How much is the motor vehicle exemption in Oklahoma in a chapter 7 filing?
A:
Unlike a lot of states, Oklahoma prohibits you from claiming the bankruptcy code exemptions.
However, OK state law appears to allow you up to $7,500 in equity value (fair market value after deducting lien amount) in your vehicle.
I highly recommend that you confer with, and use, an experienced Oklahoma lawyer about your bankruptcy plan before you take any further actions.
Timothy Denison agrees with this answer
A:
In Oklahoma, when you file for Chapter 7 bankruptcy, you're allowed to exempt up to $7,500 in equity in your motor vehicle. This exemption is per person, so if a married couple is filing jointly, each spouse can potentially exempt one vehicle up to the $7,500 limit.
Equity is calculated by taking the current market value of your vehicle and subtracting any loan balance you owe on it. For instance, if your car is worth $10,000 and you owe $5,000 on a car loan, you have $5,000 in equity. This amount would be fully exempt under Oklahoma's motor vehicle exemption in a Chapter 7 filing.
It's important to accurately assess the value of your vehicle and understand your loan balance to determine your equity. If your vehicle's equity exceeds the exemption limit, the bankruptcy trustee might sell the vehicle to pay creditors, giving you the exempted amount back. In such cases, careful planning can help protect your assets. Always consider consulting with a legal professional for guidance tailored to your specific situation.
Timothy Denison agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
