Income and Expenses

Income limits vary according to your household size. These averages are updated periodically by the IRS and the Bureau of Labor Statistics. Here are the current limits in Oklahoma.

  • The median income for a single person is $43,109.
  • The median income for a two-person household is $54,922.
  • The median income for a three-person household is $58,260.
  • The median income for a four-person household is $67,299.
  • For each additional individual, the limit increases by $8,400.

The Means Test and Exceptions

The means test was introduced in 2005. It limits who can file under Chapter 7. If your income is higher than average and you fail the means test, you need to file under Chapter 13, which requires partial repayment. Chapter 7 liquidation bankruptcies are intended for individuals who are unable to repay their creditors. Usually, this means that you earn less than the state’s median or have substantial expenses.

You can still file for a liquidation bankruptcy if you earn more than the median but don’t have enough disposable income to pay off at least 25 percent of your unsecured non-priority debts or a total of $6,000 over the next five years. The courts use whichever number is larger. If you don’t qualify for Chapter 7 protection, the good news is that you can keep your assets and property with a Chapter 13 bankruptcy, so it might be a better option for you anyway.

Other Considerations

Before you file for bankruptcy, your attorney will complete several official forms regarding your monthly income and expenses. The forms that are required depend on whether you are filing under Chapter 7 or Chapter 13. If your income is between certain limits, additional calculations are required. Special considerations may apply if your income has decreased.

For personal advice based on your situation, call my office at 405-216-0007. We can arrange a convenient time to review your finances. I am an experienced bankruptcy attorney and a former state-appointed Chapter 7 trustee. I have served residents of Oklahoma City, Edmond, Norman and the surrounding area for more than 25 years.

how-do-i-start

Schedule your consultation TODAY.

  • This field is for validation purposes and should be left unchanged.

Latest Articles

Westmoreland Coal files bankruptcy

One of the oldest coal companies in the U.S. filed for bankruptcy protection Tuesday to deal with more than $1.4 billion in debt amid declining demand for the fuel. Westmoreland Coal Co. filed for voluntary Chapter...

Read More...

American Tire Distributors Inc. files bankruptcy

American Tire Distributors, Inc. voluntarily filed for reorganization under Chapter 11. The company said that it has entered into a definitive agreement with approximately 75% of its bondholders on the terms of its recapitalization that...

Read More...

Mattress Firm, America’s largest mattress retailer, files bankruptcy

Mattress Firm, the nation's largest mattress retailer, filed for Chapter 11 bankruptcy Friday and announced plans to close 700 "under-performing" stores. The company said it will quickly close 200 under performing stores and make decisions about...

Read More...

Lindsay Lohan’s mom files bankruptcy

Dina Lohan, Lindsay's mom, filed bankruptcy on September 24 in the Eastern District of New York under Chapter 13. A Chapter 13 bankruptcy is a type of bankruptcy where you make voluntary payments pursuant to a...

Read More...
Reader's Choice 2017 award