Oklahoma Bankruptcy Exemptions

Oklahoma is an opt-out state, so federal bankruptcy exemptions are not available. However, certain federal nonbankruptcy exemptions—such as Social Security and ERISA retirement protections—may still apply. Below is a summary of common Oklahoma exemptions from your notes.Verify the exact amounts and any updates by consulting a licensed Oklahoma bankruptcy attorney or checking the Oklahoma Statutes.

Note: Spouses filing jointly in Oklahoma typically can double exemptions unless stated otherwise.

Homestead Exemption

Amount: Unlimited equity in real property or burial plot (with acreage restrictions):

  • Up to one acre in a city or town
  • Up to 160 acres otherwise
  • Manufactured homes included
  • Reduced to \$5,000 if more than 25% is used for business

Check with a local attorney about doubling. (Okla. Stat. tit. 31 §§ 1(A)(1); 2)

Motor Vehicle Exemption

Amount: Up to \$7,500 equity in one vehicle. (Okla. Stat. tit. 31 § 1(A)(13))

Tools of Trade Exemption

Amount: Up to \$10,000 in tools of the trade or farm implements. (Okla. Stat. tit. 31 § 1(A)(5))

Wildcard Exemption

None provided by Oklahoma statutes.

Personal Property Exemptions

Okla. Stat. tit. 31 § 1(A) (10) – (12), (15) – (17), (21), (23), (24) (not exhaustive):

  • Furniture
  • Burial plot
  • Books, portraits, pictures
  • \$4,000 of clothing
  • \$3,000 of wedding and anniversary rings
  • Health aids
  • \$2,000 in guns
  • Five milk cows and calves under six months old
  • 100 chickens
  • Two horses, two bridles, two saddles
  • Ten hogs
  • 20 sheep
  • Provisions for one year
  • \$50,000 of personal injury, wrongful death, or workers’ comp recovery (excluding punitive damages)
  • Earned income tax credits
  • Oklahoma College Savings Plan

Retirement Accounts

Generally, Oklahoma protects:

  • County employees (Okla. Stat. tit. 19 § 959)
  • Disabled veterans (some references under tit. 31 § 1(A)(20), (24))
  • Firefighters (Okla. Stat. tit. 11 § 49-126)
  • Judges (Okla. Stat. tit. 20 § 1111)
  • Police officers (Okla. Stat. tit. 11 § 50-124)
  • Public employees (Okla. Stat. tit. 74 § 923)
  • Teachers (Okla. Stat. tit. 70 § 17-109 or other references)
  • ERISA-qualified benefits, IRAs, Keoghs (some coverage in Okla. Stat. tit. 31)

Also note that federal law generally protects tax-exempt retirement accounts in bankruptcy, including 401(k)s, 403(b)s, profit-sharing, SEP, SIMPLE IRAs, and traditional & Roth IRAs up to certain federal limits. (11 U.S.C. §§ 522(b)(3)(C), (n).)

Available Federal Nonbankruptcy Exemptions

Even though Oklahoma does not allow federal bankruptcy exemptions, certain federal nonbankruptcy exemptions (like Social Security, certain military benefits, etc.) are still available. Confirm with your attorney which ones might apply.

Other Oklahoma Exemptions

Public Benefits:

  • Crime victims’ compensation (Okla. Stat. tit. 21 § 142.13)
  • Unemployment compensation (Okla. Stat. tit. 40 § 2-303)
  • Public assistance & Social Security (Okla. Stat. tit. 56 § 173)
  • Workers’ compensation (Okla. Stat. tit. 85 § 48)

Insurance:

  • Assessment or mutual benefits (Okla. Stat. tit. 36 § 2410)
  • Limited stock insurance benefits (Okla. Stat. tit. 36 § 2510)
  • Fraternal benefit society benefits (Okla. Stat. tit. 36 § 2718.1)
  • Life, health, accident, mutual benefit or group life policy/cash value (Okla. Stat. tit. 36 §§ 3631.1, 3632)

Alimony and Child Support: Okla. Stat. tit. 12 § 1171.1; tit. 31 § 1(A)(19).

Funeral benefits if pre-paid in trust: Okla. Stat. tit. 36 § 6125.

Business partnership property: Okla. Stat. tit. 54 § 1-501.

Residency Requirements & Homestead Timing

You must live in Oklahoma for at least two years to use Oklahoma’s exemptions. Otherwise, you might have to use your prior state’s exemption laws. (11 U.S.C. § 522(b)(3)(A).)

A separate federal rule caps the homestead exemption at \$189,050if you’ve lived in your home for fewer than 40 months before filing (with certain exceptions).

What Happens to Nonexempt Property in Oklahoma Bankruptcy?

In Chapter 7, any nonexempt assets may be sold by the trustee to pay creditors, unless you pay for the asset’s value to keep it. In Chapter 13, you retain all assets but pay creditors the value of nonexempt property over 3-5 years.

Disclaimer

This overview is for informational purposes only and is not legal advice. Exemption amounts and interpretations can change by legislation or court rulings. Always consult a licensed Oklahoma bankruptcy attorney or refer to the Oklahoma Statutes for accurate, up-to-date details applicable to your case.