Can High-Income Earners File for Bankruptcy in Edmond, Oklahoma?

by Luke Homen

A well-earned life, built with careful planning and hard work, can still go sideways. You’ve made good money in Edmond, Oklahoma. Maybe you’ve had a solid career, invested smart, and felt pretty secure. But then, life throws a curveball. A big economic downturn, a sudden business failure, or huge medical bills. All that security can just vanish. You’re left staring at a pile of debt, feeling confused, angry, and thinking, “How did I get here?”

The good news is that help is here, and there’s a clear way forward, even for high-income earners. For many in Edmond struggling with too much debt, bankruptcy can be a fresh start.

At Convenient Bankruptcy, we can talk about your options, including whether bankruptcy is right for you. Even though you’re a high-income earner, you might be surprised how easy it can be to get your financial life back on track. If you’re feeling stuck, our Tulsa bankruptcy attorneys want to talk to you!

When a High Income Meets High Debt

It might seem strange to think of someone with a substantial income needing bankruptcy. But debt doesn’t care how much you make. People who earn a lot often carry bigger debts: larger mortgages, hefty business loans, or big credit lines tied to their lifestyle or ventures. When something financially devastating happens, these debts can become impossible to manage, even for those used to handling serious money.

In Edmond, Oklahoma, the average household income is around $102,000, with many earning much more. Yet, even with high earnings, unexpected problems can derail your careful investments and life plan.

Your Options: Chapter 7 and Chapter 13

If you’re a high-income earner in Edmond thinking about bankruptcy, you’ll likely look at Chapter 7 or Chapter 13. Your unique situation, what you own, and your goals will point to the best choice.

Chapter 7 and The “Means Test”

Chapter 7 bankruptcy aims to wipe out most unsecured debts like credit card bills and medical expenses. It’s a direct path to a clean slate. To qualify, your income needs to be below the median for your household size in Oklahoma, based on the past six months. This is called the “means test.”

Here’s the key for high-income earners: even if your income is above that median, you still might qualify for Chapter 7. The means test allows you to deduct necessary living expenses, taxes, and even certain secured debt payments. After these deductions, your “disposable income” could fall within the Chapter 7 limits. Figuring out these deductions precisely is complicated.

Oklahoma law also has exemptions that protect certain assets in Chapter 7. For example, a good chunk of your home equity might be protected under the homestead exemption. Retirement accounts like 401(k)s and IRAs are often fully protected. We’ll help you understand what assets are safe and how to make the most of these protections.

Reorganizing Your Financial Life With Chapter 13

If Chapter 7 isn’t an option, or if you want to keep valuable assets that wouldn’t be protected in a Chapter 7, Chapter 13 bankruptcy offers a powerful alternative. This chapter lets you reorganize your debts into a manageable repayment plan, usually over three to five years.

Chapter 13 is often a good fit for high-income earners because it allows you to keep your assets, get current on secured debts, and restructure your debt so that it is more manageable. All your approved debt payments go through a single monthly payment to a bankruptcy trustee.

The Chapter 13 repayment plan is built around your disposable income after allowed expenses. So, even with a high income, the plan will reflect what you can realistically afford while covering your essential living costs.

Protecting What You’ve Built

A big worry for high-income earners considering bankruptcy is what happens to their wealth and reputation. The good news is that bankruptcy is a legal tool designed to help. Through bankruptcy, you can make smart choices to keep as much as you can while getting rid of overwhelming debt.

Our job is to carefully review your assets, income, and debts. We work with you to understand your financial picture and figure out which bankruptcy chapter offers the best protection for your property and the most effective way to get debt relief. This often involves a detailed financial analysis to apply the means test deductions correctly or to create a Chapter 13 plan that safeguards your investments and property.

Your Next Step: A Private Talk

Realizing you need bankruptcy, especially when you’ve done well financially, takes courage. It means admitting that despite your best efforts, a situation has become too much. But taking that step means you’re ready to get your financial future back.

You deserve a confidential, nonjudgmental conversation about your options. If you’re a high-income earner in Edmond struggling with overwhelming debt, it’s time to see how bankruptcy can give you the relief and fresh start you need.

Call Convenient Bankruptcy in Oklahoma City today at 405-639-2099 to schedule a consultation or fill out our confidential contact form. Let’s talk about what you’re facing, what worries you, and the best way forward. You don’t have to carry this burden alone.