Wages

[snrsfn]

75% of wages earned in 90 days before filing bankruptcy; bankruptcy judge may allow more if you show hardship


This is what my state (OK) says is exempt, I may be a little slow, but I am not understanding this. How can 75% of your wages be exempt? Isn't that what you take the means test for? And what about the other 25%? Any help would be greatly appreciated!

And Ok also does not have a wildcard at all! That can make it pretty rough right?

[lrprn]

How can 75% of your wages be exempt?

Actually the Oklahoma exemption regarding wages states, "75% of wages earned within 90 days prior to filing bankruptcy. Judge may approve more if you can show hardship." http://www.thebankruptcysite.org/exe.../oklahoma.html

What Oklahoma is saying is that 75% of your wages that you earned during the 90 days before filing cannot be taken by the court when you file bankruptcy to pay back your creditors.

However, the remaining 25% of what you earned in the 90 days before filing may be taken by your trustee if you can't protect it with your OK exemptions. The bk judge in your local court can restrict how much of this 25% can be taken by the trustee if you can show hardship (job loss, unexpected medical expenses, etc).

And Ok also does not have a wildcard at all! That can make it pretty rough right?

Many states don't have a wildcard, so you have to look carefully through the exemptions to see if any of them protect cash. Looking over your OK exemptions, I don't see any exemptions related to cash except your wages exemption. That means that you will need to plan your filing time so that the amount of cash in all your accounts is as low as possible - in your case, well under 25% of your wages earned in the last 90 days before filing for sure. Many lawyers in states with low or no exemptions for cash will recommend having $200-300 total in cash in all your accounts on filing day if you can manage it.

Of course, experienced bk attorneys in your area can share their thoughts about this and answer other questions you may have during your 3-4 free initial consultations. Have you set those appointments up yet?