Bankruptcy in Medford, OR

Bankruptcy might not be what you imagined—it could be the turning point you need. 

Rather than a failure, it’s a legal tool designed to help you press pause, regroup, and move forward. With the right strategy, you could eliminate unsecured debts, stop wage garnishments, and protect critical assets. Medford residents also benefit from Oregon’s exemption laws, which could let you keep more than you expect.

You don’t have to guess your way through this process. Ask for a referral to a local bankruptcy attorney in Medford who understands the process.

Types of Bankruptcy in Medford, Oregon

Bankruptcy is a court-supervised process that gives individuals and businesses a structured way to eliminate or reorganize debt. If you live in Medford, Oregon, you’ll need to show the court that you’re facing a legitimate financial hardship.

It’s important to know that bankruptcy doesn’t wipe out every type of debt. While many unsecured obligations can be discharged, things like child support, most taxes, alimony, and student loans are generally excluded. 

For residents of Medford, all bankruptcy matters fall under the jurisdiction of the U.S. Bankruptcy Court for the District of Oregon. 

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often the right fit for Medford residents who need a clean financial slate. But before you move forward, it’s important to take an honest look at your income, debts, and what you’re willing—or able—to give up. A bankruptcy attorney can help you weigh whether liquidation is a strategic choice based on your specific situation.

Most individuals who qualify for Chapter 7 have little or no steady income, or they’ve faced a financial shock, such as job loss, medical bills, or divorce, that made it impossible to keep up with payments. While Chapter 7 can eliminate many unsecured debts, the process may also involve surrendering certain non-exempt assets. 

Once you file, an automatic stay goes into effect, temporarily halting creditor actions like garnishments and foreclosure. However, that protection doesn’t cover all debts—child support and criminal restitution still apply.

To file Chapter 7 in Medford, you’ll need to pass Oregon’s Means Test. This test compares your household income to the state median for your family size. If your income exceeds the threshold, you may have to pursue a different chapter.

In addition, credit counseling is a required first step. Most counseling sessions are available online or by phone, and you’ll need a certificate of completion.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is generally reserved for business owners or individuals with substantial assets and complex financial obligations. Unlike Chapter 7, this option allows you to reorganize what you owe through a court-approved plan, typically spread over four to eighteen months. 

One of the key advantages is that you’re not required to liquidate property to stay compliant. Instead, you negotiate revised payment terms with creditors while maintaining control of your business or personal assets.

In Medford, Chapter 11 cases must be filed with the U.S. Bankruptcy Court for the District of Oregon, and the process requires a detailed set of filings. Petitioners are responsible for submitting both federal and district-specific forms, including:

• A bankruptcy petition and $1,738 filing fee
• A complete list of creditors and contact information
• A certificate proving completion of a credit counseling session
• A full disclosure of income and monthly expenses
• A statement summarizing your assets and liabilities

Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers a structured repayment approach for individuals with regular income who are struggling to keep up with debt. In Medford, Oregon, once you file, the court appoints a trustee to review your financial situation—this includes your debts, assets, monthly expenses, and income. 

Based on this evaluation, you’ll work out a repayment plan that typically lasts three to five years. The plan’s terms depend on your income level and the assets you’re trying to protect. In some cases, you may even qualify for a partial discharge of remaining debts once the plan is complete.

The U.S. Bankruptcy Court for the District of Oregon outlines specific requirements for those filing under Chapter 13 in Medford. Your filing must include:

• A bankruptcy petition and a $313 filing fee
• A list of all known creditors and their contact information
• Proof that you’ve completed a court-approved credit counseling course
• Detailed schedules disclosing your income, expenses, debts, and assets
• A proposed repayment plan submitted on the court’s local Chapter 13 form

The Bankruptcy Process in Medford, Oregon

There’s rarely a perfect moment to file for bankruptcy—but if your debts are growing faster than you can repay them, and there’s no realistic path to catch up within five years, it may be time to explore your legal options. 

To begin the process in Medford, you’ll need to pull together comprehensive financial documentation. That includes details about your monthly bills, total debts, owned property, and income. This information forms the foundation of your case, and any missing or inaccurate data could lead to delays or even denial of your petition.

When filing for bankruptcy in Oregon, you must choose the state or federal exemption system. Mixing provisions from both lists is not allowed. Under Oregon’s exemption rules, you may be able to protect the following:

• Up to $40,000 of equity in your primary residence (homestead exemption)
• Up to $3,000 in value for one motor vehicle
• Up to $7,000 in essential household goods like furniture and appliances
• Most pensions and retirement accounts
• A wildcard exemption of up to $400 for any property not otherwise covered

In the months leading up to your filing, it’s important to reduce discretionary spending and avoid running up credit cards. You’ll also need to complete a government-approved credit counseling course, typically done online or by phone. Once finished, you’ll receive a certificate to include in your bankruptcy petition. Without this certificate, the court will reject your case outright.

Work With an Experienced Medford, Oregon Lawyer

Working with a bankruptcy attorney in Medford can help you avoid costly mistakes and improve your chances of success. A seasoned local lawyer can apply state and federal laws to your unique financial situation. They can clarify which debts may be discharged, which are protected, and what steps to take to move forward confidently.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

About the Author

Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.

With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.