When debts become overwhelming, Chapter 7 bankruptcy can offer a path to financial relief for individuals and families in Oklahoma. Often referred to as “liquidation bankruptcy,” Chapter 7 can eliminate many types of unsecured debt, such as credit cards and medical bills. However, not everyone is eligible to file under this chapter. Understanding who qualifies is the first step toward regaining control of your finances.



At Branch and Hurtt Law Firm, P.C., we provide legal assistance to the Oklahoma public, guiding clients through the complexities of bankruptcy law and helping them determine the best way forward.

Income Requirements and the Means Test

The primary qualification for Chapter 7 bankruptcy is passing the means test, which compares your income to the median income in Oklahoma for a household of your size. If your income falls below the median, you may automatically qualify.

If your income is above the median, you can still qualify—but you’ll need to complete the full means test, which deducts specific monthly expenses from your income to determine whether you have enough disposable income to repay debts. If the result shows limited ability to pay, you may still be eligible for Chapter 7.

Additional Requirements to File

Even if you pass the means test, you must also meet other eligibility criteria:

• You haven’t filed for Chapter 7 in the last eight years or Chapter 13 in the last six years.
• You must complete a credit counseling course from an approved provider within 180 days before filing.
• You must not have had a bankruptcy petition dismissed for certain reasons (like fraud or court order violations) within the last 180 days.

What Debts Can Be Discharged?

Chapter 7 can eliminate many types of unsecured debt, including:

• Credit card debt
• Medical bills
• Personal loans
• Utility bills
• Some older tax debts

However, certain debts—such as student loans, recent taxes, child support, and alimony—are generally not dischargeable.

What Assets Can You Keep?

Many people worry that filing Chapter 7 means losing everything. Fortunately, Oklahoma has generous exemption laws that allow you to keep essential property, including:

• Your home (up to a certain equity limit)
• A vehicle
• Clothing and household goods
• Retirement accounts

In many cases, filers can keep most, if not all, of their assets.

Talk to a Bankruptcy Attorney in Oklahoma

Filing for Chapter 7 bankruptcy can be a powerful way to get a fresh financial start, but it’s not right for everyone. At Branch and Hurtt Law Firm, P.C., we can assess your financial situation and determine whether you qualify. We’re here to provide trusted legal guidance to help you make informed decisions.