Oklahoma Bankruptcy

Bankruptcy is a legal mechanism that presents overwhelmed individuals and struggling businesses with an opportunity to eliminate unsecured debts or develop a structured plan for repayment. During bankruptcy proceedings in Oklahoma, filers must rely on the state exemption system to protect their property from being sold to satisfy their debts. Federal nonbankruptcy exemptions may also be used alongside state exemptions if the filer qualifies to use them.

How to File Bankruptcy in Oklahoma

Some of the key documents you will need to prepare before filling out bankruptcy forms include pay stubs, tax returns, a recent credit report, bank statements, credit and loan statements, and letters from debt collectors. It is also mandatory to complete a credit counseling course from an approved provider, which helps determine whether filing for bankruptcy is the right option for your situation.

To file your case, the court requires a filing fee that varies depending on the chapter you choose. The most common types are Chapter 7 and Chapter 13, which cost $338 and $313, respectively. If you are unable to pay the fee in full, you may request permission from the court to pay in installments.

If you are filing in person, ensure that your forms are printed on standard 8.5” x 11” white paper, single-sided, and in black ink. The documents should not be stapled. When submitting your forms, include the filing fee and the certificate you received after completing the credit counseling course.

After filing, the court will assign a case number and appoint a trustee to oversee your case. The trustee will review your documents and conduct a 341 meeting, also known as the meeting of creditors, where you will answer questions about your financial situation and the information in your filing. It is recommended that you complete a debtor education course within 60 days after the meeting and submit the completion certificate to qualify for a bankruptcy discharge.

Oklahoma Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Choosing the right type of bankruptcy to file depends on your financial situation, long-term goals and income level. In Oklahoma, the most common types of bankruptcy filed are Chapter 7, Chapter 11, and Chapter 13.

Chapter 7, often called liquidation bankruptcy, is designed for individuals who earn below Oklahoma's median income. It helps eliminate unsecured debts such as credit cards, medical bills, and personal loans. During the process, a court-appointed trustee reviews the filer’s finances and may sell non-exempt assets to repay creditors.

Chapter 13 or reorganization bankruptcy, is better suited for individuals who have regular income and can afford to repay a portion of their debts over time. Under this chapter, the filer must propose a repayment plan lasting three to five years that will help them catch up on secured debts such as car loans and a mortgage and avoid foreclosure.

In Oklahoma, Chapter 11 bankruptcy is useful for businesses that wish to remain open while reorganizing debt obligations. The debtor typically retains control of business operations and works with creditors to create a reorganization plan that outlines how debts will be managed or repaid.

Step-by-Step Checklist for Oklahoma Filers

A step-by-step breakdown of the bankruptcy filing process in Oklahoma is provided below:

• Prepare all required documents for your case
• Complete the mandatory credit counseling course
• Choose the appropriate bankruptcy chapter
• Prepare and print your bankruptcy forms
• File your case with the U.S. Bankruptcy Court
• Pay the filing fee or request approval to pay in installments
• Attend the 341 meeting of creditors
• Complete the debtor education course
• Receive your bankruptcy discharge

Oklahoma Bankruptcy Courts & Record Access

Oklahoma has three federal bankruptcy courts that handle all bankruptcy filings, hearings, and related matters.

Eastern District of Oklahoma

This court covers the eastern part of the state, including Muskogee and nearby counties. The main courthouse is located at:

Northern District of OklahomaThis court covers the northeastern region, including Tulsa and surrounding counties. It is situated at:

Western District of Oklahoma

All bankruptcy cases in the western and central regions, including Oklahoma city, are heard in this court. It is located at:

RECORD ACCESS

The U.S. Bankruptcy Courts in Oklahoma provide the public with several options to retrieve case information and documents in bankruptcy cases. For remote access to case documents, you must register a free account with the Public Access to Electronic Court Records (PACER) system. As an alternative option, you may visit the public terminal in federal courthouses to view and print documents in your desired case.

Since bankruptcy filings are maintained by the clerk in each court, you may request regular copies of case documents for $50 per copy. It is important to note that court clerks will only receive this request in person or by mail. To facilitate record access, you are required to include the case number, your full name, return address, and daytime phone number in your request. However, if you do not know the case number, the clerk of court may conduct a party index search on your behalf for a small fee.

Bankruptcy records from Oklahoma have been transferred to the Federal Records Center (FRC) in Fort Worth, Texas, if the bankruptcy case has been closed for at least three (3) years. Before you order records, you must confirm that the clerk has the record archived. After verification, you can order your records from the FRC online, via fax, or through the clerk of court, if you prefer. If you order through the clerk, record retrieval is $70, not including the cost of copies.