Can You Keep Your Home After Filing Bankruptcy in Oklahoma?

Filing for bankruptcy can be a daunting experience, especially when it comes to concerns about your home. Many Oklahomans wonder if they can retain their property after filing for bankruptcy. The answer largely depends on various factors including the type of bankruptcy filed, the equity in your home, and individual circumstances.

In Oklahoma, there are two common types of bankruptcy filings for individuals: Chapter 7 and Chapter 13. Each has its own implications for homeownership.

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy, also known as liquidation bankruptcy, non-exempt assets may be sold to repay creditors. However, Oklahoma provides certain exemptions that can protect your home. In Oklahoma, the homestead exemption allows you to maintain up to $50,000 of equity in your primary residence if you are a single filer, or up to $100,000 if you are married and filing jointly. This means that as long as your equity in the home does not exceed these limits, you can keep your house.

If your home’s equity exceeds the exemption limits, the bankruptcy trustee may choose to sell your property to pay off creditors. However, many individuals find they can keep their homes because their equity falls within the protected amounts.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is also known as a reorganization bankruptcy. In this type of filing, you create a repayment plan to pay back your debts over three to five years while keeping your assets, including your home. This type often benefits those who want to avoid foreclosure and stop debt collection actions.

Under Chapter 13, you can catch up on missed mortgage payments while retaining your home. Your repayment plan will outline how much you can afford to pay and over what period of time. As long as you stick to this plan and make your required payments, you can successfully keep your home throughout the bankruptcy process.

Additional Considerations

It's crucial to consider other factors when filing for bankruptcy in Oklahoma. Your mortgage lender may have its own policies regarding bankruptcy, and if you are behind on your payments, you could still face foreclosure. It’s vital to work with your lender and communicate your situation.

Furthermore, if you are considering bankruptcy, it's advisable to consult with an experienced bankruptcy attorney. They can help you understand your rights, the implications of bankruptcy on your home, and the best course of action based on your unique situation.

In summary, yes, it is possible to keep your home after filing for bankruptcy in Oklahoma, depending on the type of bankruptcy you choose and your individual circumstances. By understanding the exemptions available and seeking professional advice, you can navigate the complexities of bankruptcy while protecting your home.