Filing for Bankruptcy in Oregon

We have bankruptcy law offices in many different cities throughout the state of Oregon, including Portland, Medford, Eugene, Salem, Tigard, Klamath Falls, Coos Bay, Bend and several others. There are federal bankruptcy statutes, but there are also state specific laws that effect bankruptcy. In this post, we will provide an overview regarding some of the specific details that come into play when you file for bankruptcy in Oregon.

First, you have to understand what type of bankruptcy you are going to file. Most individuals will choose between either a Chapter 7 bankruptcy or a Chapter 13. You have to make an honest effort to pay back as much of your debts as you can if you have sufficient disposable income, so there is a means test that you must pass to qualify for Chapter 7, which is a liquidation bankruptcy. You automatically pass this test if your income is less than the median income in the state of Oregon. According to the United States Census Bureau, the median income in our state for a single person is $50,333 per year.  For a household of 4, the median income is $80.170.   You can potentially qualify for Chapter 7 even if your income exceeds this amount if it is determined that you don’t have enough disposable income to devote to a repayment plan.

Before you are allowed to enter into the bankruptcy process, you are required to take a credit counseling course. You also have to take a debtor education course before your debts can be discharged. This requirement can seem like a huge hassle, but it does not take long and it allows an independent party to review your finances before you file the case.  Most people take these courses online and some people do them over the phone. You can click these links to see a list of the approved providers of these tests for residents of Oregon: credit counseling and debtor education.

Simplify the Process!

The best way to file for bankruptcy in Oregon is to sit down and discuss all of your options with a licensed bankruptcy lawyer. One you determine which bankruptcy is right for you, your attorney can guide you through the process each and every step of the way.  Legal assistance is invaluable because it can be complicated to navigate these waters on your own. If you would like to speak with us about your debt, we would be more than glad to assist you. Our firm offers free consultations, and you can request an appointment if you send us a message through our contact page.

Answers to Three FAQs about Bankruptcy in Oregon

We have been providing bankruptcy assistance in the state of Oregon for over 40 years, and we now have offices Portland, Eugene, Medford, Grants Pass, Coos Bay, Roseburg, Salem, Bend and a handful of additional cities. If you are considering the possibility of a bankruptcy filing in the state, you are going to have questions, and we can provide you with answers if you visit us in person. In the meantime, let’s look at the answers to three frequently asked questions about bankruptcy in Oregon so you can proceed with an underpinning of basic knowledge.

What are the different types of bankruptcy that are filed by individuals?

Chapter 7 and Chapter 13 are the forms of bankruptcy that are most commonly utilized. Chapter 11 is a type of bankruptcy that is used by businesses and a very limited percentage of individuals who have enormous levels of debt. Chapter 12 is a rarely used form of bankruptcy that is exclusively earmarked for family farmers and family fishermen.

How does a Chapter 7 differ from a Chapter 13 bankruptcy?

A Chapter 7 is a liquidation bankruptcy, so unsecured debts like medical bills and credit card balances are discharged. Plus, you can usually retain ownership of your car and your home if you are current on your payments. To be able to qualify for this type of bankruptcy, you have to be able to pass a means test. If your income is less than the median income in the state of your residence, you automatically qualify. It is possible to qualify even if your income does exceed the median if certain circumstances exist.

People who cannot qualify for Chapter 7 because they have too much income can file for a Chapter 13 reorganization. If you were to do this, you can keep all of your property, and your debt will be restructured. You will be required to use your disposable income to pay down the debt over a period of 3 to 5 years.

How long will a bankruptcy stay on my credit report?

It depends on the type of bankruptcy you file. Credit reporting agencies will erase a Chapter 13 bankruptcy after seven years. If you file for Chapter 7, the bankruptcy will remain on your credit report for 10 years.

Set Up a Free Bankruptcy Consultation

If you will like to take action after absorbing this basic information, we will be more than glad to assist you. We provide free initial case evaluations, so you can get to know us and learn more about the benefits of bankruptcy before you make any final decisions. To set the wheels in motion, send us a message through our contact page and we will get back in touch with you promptly.