Written by Attorney Karra Kingston.
Updated September 3, 2020
If you are in over your head with debt, then you may want to consider filing an Oklahoma bankruptcy. Bankruptcy relieves people from debts so they can get a fresh start. To file bankruptcy, you must pass a Means Test to see if you qualify for Chapter 7 relief. In 2005, Congress created an initial qualification step, the Chapter 7 Means Test, that all debtors need to pass before filing a Chapter 7 case. This change came about to stop people who could otherwise afford to repay their debts, from filing fraudulent bankruptcy cases. There are two ways to pass the Chapter 7 Means Test. First, if your monthly household income averaged over the last 6 months is lower than the median income for a household of your size in Oklahoma, you immediately pass the Means Test. If your income is higher, you can still qualify by going to the next part of the means test calculation, which looks at your disposable income after your monthly expenses. If you have little to no disposable income remaining after your expenses are deducted, you pass the bankruptcy Means Test Oklahomaand qualify for Chapter 7 relief.
Oklahoma Median Income Levels
Oklahoma Median Income Standards for Means Test for Cases Filed In 2022
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Discharge in Bankruptcy for Oklahoma
The goal in your Oklahoma bankruptcy is to get a discharge. A discharge is when the Bankruptcy Court issues an order allowing you to walk away from your debts. The discharge order prohibits your creditors from going after you to repay the debts. Some debts like child support and recent tax debts are non-dischargeable. Debts that are non-dischargeable will survive your Oklahoma bankruptcy. Luckily, unsecured debts (like credit cards and medical bills) will not have to be paid back, which by itself provides a huge relief for most. To receive your Oklahoma bankruptcy discharge, it’s important to take the proper steps. You must file all required documents and attend your Meeting of Creditors with your bankruptcy Trustee. Upsolve can help you with your entire bankruptcy process by walking you through it, step by step, to make sure the process goes smoothly. Approximately 60 days after your Meeting of Creditors you should receive your Oklahoma bankruptcy discharge and be able to move forward with your life debt-free!
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Oklahoma Means Test Calculator
Qualifying under the Chapter 7 Means Test is the single most important thing to be able to file a Chapter 7 bankruptcy. There are many online calculators you can use to help you calculate your income and expenses. It’s very important that you are using an up-to-date Oklahoma Means Test calculator so that you have the best chance to qualify. Keep in mind that the Means Test figures change periodically and using an outdated Means Test calculator can ruin your chances of being able to qualify. The Means Test calculator averages your monthly income and expenses so even one wrong number can have a significant impact. Upsolve’s Means Test calculator is kept current to the day for Oklahoma so you don’t have to stress about using one that is old. The Chapter 7 Means Test is dependent on the final calculation, so it’s important you calculate everything correctly. You can use Upsolve, to help you every step of the way.
What Happens If I Fail The Means Test for Oklahoma
If you complete the Chapter 7 Means Test and don’t qualify for a Chapter 7 bankruptcy, you can go through the Means Test again to make certain that you are including all possible expenses. It’s easy to miss something or forget an expense if it isn’t a regular monthly occurrence. Even though you only pay something only once per year, you should still include it in your calculation if it’s considered an allowed expense. If you still don’t qualify after you’ve checked everything over, you may want to think about whether there are any big changes in your immediate future. Is your employer going through a round of layoffs? Is your work seasonal? If so, timing is everything. The bankruptcy Means Test in Oklahoma averages your income for the past 6 months so waiting a few months to file could lower your average monthly income. Upsolve can assist you with your case using our Oklahoma Bankruptcy Guide. If you do not see any changes in the near future happening, you may want to speak with an attorney to learn about filing a Chapter 13 case.