Oklahoma Bankruptcy HelpYou Must Take This Test Before Filing for Tulsa, Oklahoma, Bankruptcy
In 2008, bankruptcy law was amended to make it more difficult for an individual to file for and secure a Chapter 7 discharge of debt. As opposed to a reorganization of debt under Chapter 13, Chapter 7 will usually result in the discharge of most or all of your debt. In order to file for Chapter 7 relief now, you must pass what is called a Bankruptcy Means Test. 
The means test looks at your income, expenses and family size in order to see whether you have enough “disposable” income to pay your debts under a Chapter 13 reorganization plan instead of a Chapter 7 discharge. This is the court’s way of balancing your needs for debt relief against the creditor’s need to get paid.
If you do not pass the means test, you must file for reorganization instead of discharge.
What the Means Test Looks At
There are several things this test looks at. Income is one of the first things it considers. The test looks to see whether your income is below the median income for your state. In Oklahoma in 2018, as a single earner, you can earn as much as $43,109 annually and still qualify to file Chapter 7. A family of two can bring in as much as $54,922 per year and not need to take special steps to file Chapter 7, while a family of three could earn as much as $58,260 annually and qualify for bankruptcy relief.
If you end up having to go with Chapter 13 reorganization instead of Chapter 7, the means test results will likely have some bearing on your organization plan.
Potential Exceptions
People who earn more money or who “fail” their Oklahoma bankruptcy means test may still be able to qualify for Chapter 7 bankruptcy. The court looks at “allowable expenses” to determine if you have any means to pay off creditors. In order to fill out this form, you need to gather all of your expenses for the past six months. That includes groceries, utilities, clothing, transportation costs and the like. Expenses that typically fall under the category of “luxuries,” such as cable TV are not considered to be an “allowable expense.” This form can be daunting, and it must be filled out completely and accurately.
Any income remaining after “allowable expenses” could be used to pay creditors, and could push you into a reorganization of your debt rather than discharge. Alternatively, you could wait for a period of time and retake the means test. As your expenses change, you may have less disposable income. In all cases, it is best to work with a qualified Tulsa bankruptcy attorney.
Low-cost Bankruptcy Planning: Tulsa Bankruptcy Lawyer
To get the best possible outcome in your bankruptcy case, you will need to set expectations for yourself and also understand your attorney’s expectations of you.
If you’re ready to file, contact a Tulsa bankruptcy attorney at the Freedom Financial Bankruptcy Lawyers of Tulsa as soon as possible. To receive your low-cost initial bankruptcy analysis, call the Freedom Financial Bankruptcy Lawyers of Tulsa today at 918-786-9600.
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