Bankruptcy in Oregon

Are you contemplating bankruptcy or hiring a bankruptcy attorney in , Oregon? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.

Types of Bankruptcy in , Oregon

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In , OR to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

While the process can start by filing with a local court, the United States Bankruptcy Court of the District of Oregon has jurisdiction over bankruptcy cases. If you need to make an appearance for your case, the summons may come from this court.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in   who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

The Oregon State Bar reports that debtors must go through credit counseling before they can file for bankruptcy. After completing this obligation, you will receive a certificate of completion that is good for 180 days. If you don’t see a way to resolve your situation without Chapter 7, you and your lawyer will prepare the necessary paperwork. The requisite information will include every detail about your finances and property to use as collateral for new debts.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

An article published by the Oregon State Bar states that Chapter 11 gets filed to relieve large debts created by a business. If a corporation stays on a court-approved plan, it can enjoy protection from harassment and remain in business. While it’s less common, individuals can also qualify to petition for this type of bankruptcy.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In , OR after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

The Oregon State Bar regards Chapter 13 as a distinctive type of bankruptcy because it allows debtors to file a repayment plan. As of September 2020, you can utilize this legal relief if your unsecured and secured debts are less than $419,275 and $1,257,850, respectively. Other benefits can include:

• Pay unsecured creditors less than 100% of their claims

• Lower monthly payments and interest rate

• Stop of modify interest from accruing

• Delay or stop foreclosure on your home

• Flexibility to adjust plan based on changes in circumstances

The Bankruptcy Process in , Oregon

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.

In to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.

Oregon laws exempt some property from becoming sold to pay off debts during bankruptcy. Local authorities assess the value, but the equity in these types of belongings and income can remain untouched:

• Books, musical instruments, and pictures worth up to $600

• Tools of the trade worth up to $5,000

• Apparel, jewelry, and other personal items worth up to $1,800

• Vehicles worth up to $3,000

• Domestic animals and poultry worth up to $1,000

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced , Oregon Lawyer

Hiring a local bankruptcy lawyer in during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts that can be discharged or can’t be discharged. An experienced Oregon attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Oregon state lines.

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