Effective April 1, 2014, the income figures used to determine whether a person qualifies for Chapter 7 bankruptcy will be changing.

The United States Trustee Program has published the new “Census Bureau Median Family Income By Family Size” numbers on its web site.

UnknownThe new median income figures for Oklahoma households are:

  • $40,331 (1 person household)
  • $51,845 (2 person household)
  • $56,456 (3 person household)
  • $65,867 (4 person household)

*Add $8,100 for each individual in the household over 4.

If gross household income falls below the applicable numbers, an individual or married couple automatically qualifies to file a Chapter 7 bankruptcy.

A person whose household income exceeds the applicable numbers may still qualify for Chapter 7 bankruptcy if he/she has enough allowable expense deductions to offset his/her above median income or if the projected amount of disposable income would pay less than 25% of the total unsecured debt.

A person who fails the Means Test and does not qualify to file Chapter 7 bankruptcy may choose to file a Chapter 13 bankruptcy instead.

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Downward arrowThe number of bankruptcy cases filed in Oklahoma has declined for the third straight year.

Following are the total number of cases filed in Oklahoma during the past four calendar years:

2010 – 14,980
2011 – 13,119
2012 – 11,970
2013 – 10,636

Oklahoma has three bankruptcy districts – the Eastern (Okmulgee), the Northern (Tulsa) and the Western (Oklahoma City). Filings over the past four calendar years by district are:

Eastern: 2,345 (2010); 2,008 (2011); 1,862 (2012); 1,610 (2013)
Northern: 4,540 (2010); 3,796 (2011); 3,534 (2012); 3,213 (2013)
Western: 8,095 (2010); 7,315 (2011); 6,574 (2012); 5,903 (2013)

Source: Statistics from U.S.Courts.gov

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How Not To Lose Your Income Tax Refund When You File Chapter 7 Bankruptcy

January 21, 2014

Be aware that if you file Chapter 7 bankruptcy in Oklahoma before you receive your 2013 income tax refund, your Chapter 7 bankruptcy trustee can take your tax refund away from you when you receive it. Oklahoma exemption laws allow a person filing Chapter 7 bankruptcy to protect only that portion of a tax refund […]

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The Slowest Time of the Year for this Bankruptcy Attorney

December 8, 2013

I’ve been helping people file bankruptcy for eighteen years now and the time between Thanksgiving and Christmas has always been the slowest time of year for my bankruptcy practice. Several factors contribute to this annual slowdown, including: most people would rather focus on enjoying the holiday season instead of thinking about their financial problems. many […]

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New Means Test Figures Will Be Effective November 15, 2013

November 5, 2013

The income figures used to determine whether a person qualifies for Chapter 7 bankruptcy will be changing November 15, 2013. The United States Trustee Program has published the new “Census Bureau Median Family Income By Family Size” numbers on its web site. The new median income figures for Oklahoma households are: $39,749 (1 person household) […]

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Oklahoma Courts App now available

October 2, 2013

The Oklahoma Courts app is now available and gives access to the Oklahoma Bar’s directory of attorneys, the Oklahoma judicial directory, PACER, the Oklahoma Rules of Civil Procedure, the Federal Rules of Civil Procedure, Local Rules for all Oklahoma state and federal district courts, and to the websites for every state and federal court in […]

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Minor child’s bank account garnished for father’s credit card debt

August 12, 2013

Kaitlyn Kabel, an Arizona teenager, has been working 35 hours a week for the past two years to earn money for college. She’s faithfully deposited each and every paycheck into her bank account and has amassed about $8,000.00. Now the bad news. Since Kaitlyn was a minor when when she opened her bank account, the […]

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One Tulsa house’s trip through a long and winding foreclosure process

July 16, 2013

As a bankruptcy attorney, I help lots of people who find themselves no longer able to pay their house payments. My experience is that the Oklahoma judicial foreclosure process begins generally when a homeowner has fallen about six months behind. Here’s an interesting story, including video, produced by local television station KJRH about one particular Tulsa house’s […]

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Mortgage company not reporting house payments to credit bureaus because reaffirmation agreement was not filed in bankruptcy case

July 10, 2013

Recently I’ve had several of my past Chapter 7 bankruptcy clients contact me with questions regarding why their mortgage company was not reporting to the credit bureaus the house payments they had been making on a timely basis after their bankruptcy. My clients were understandably upset because they were working hard to rebuild their credit […]

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New Means Test Household Income Figures Effective May 1, 2013

April 30, 2013

On May 1, 2013, the income figures used to determine whether or not a person qualifies to file Chapter 7 bankruptcy will be increasing slightly which will make it a little easier to financially qualify to file Chapter 7. The United States Trustee Program has posted the new “Census Bureau Median Family Income By Family […]

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