Say goodbye to overwhelming debts and hello to a brighter financial future with legal help
Navigating the complexities of bankruptcy can be a challenging and overwhelming process. Whether you are facing financial difficulties or considering bankruptcy as a strategic financial decision, having the bankruptcy information you need in Portland, OR, is crucial. Understanding the specifics of bankruptcy and how it applies to your unique situation is essential for making informed decisions.
At Michael D. O’Brien & Associates, P.C., we recognize the stress and uncertainty that often accompany financial struggles. With years of experience and a dedicated team of legal professionals, we are dedicated to providing comprehensive legal assistance to individuals seeking bankruptcy solutions in the Portland area. Our commitment to personalized service and in-depth knowledge of local regulations sets us apart, making us a trusted partner in your journey toward financial recovery.
If you need bankruptcy information in Portland, trust the competency of Michael D. O’Brien & Associates, P.C. Our firm takes pride in guiding clients through the intricacies of the bankruptcy process, offering clarity and support at every step. Whether you are considering Chapter 7 or Chapter 13 bankruptcy, our experienced attorneys are here to help.
Contact us today to schedule a free consultation. Let Michael D. O’Brien & Associates, P.C. be your advocate and ally in achieving a fresh financial start. Do not navigate the complexities of bankruptcy alone—rely on a team with a proven track record of success.
Short Summary:
- Bankruptcy is a legal process designed to provide individuals and businesses overwhelmed by debt with a fresh financial start.
- Chapter 7 involves liquidation, sale of nonexempt assets, and discharge of remaining debts.
- Chapter 13 is a court-approved repayment plan over three to five years, allowing debtors to retain assets while repaying debts.
- Oregon regulations are crucial in determining assets and specific filing details during bankruptcy.
- Filing for bankruptcy in Oregon requires understanding state-specific exemptions to protect property.
- Eligibility for Chapter 7 depends on family income compared to the state median.
- Chapter 13 qualification involves considerations like priority debts, nonexempt property value, and disposable income.
- Extensive state exemptions in Oregon include homestead, motor vehicle, current wages, personal property, retirement accounts, and wildcard.
- Exemptions can be doubled for married couples in many cases.
- Filing fees for bankruptcy vary: $338 for Chapter 7 and $313 for Chapter 13, with additional costs for credit counseling and debt management courses.
- Bankruptcy has long-term credit consequences, but it can provide relief from overwhelming debt.
- Bankruptcy’s effect on businesses depends on the type and business structure. Chapter 7 erases debts for sole proprietors, while Chapter 11 allows business reorganization.
- Bankruptcy can often halt foreclosures or repossessions through an automatic stay.
- Chapter 13 provides an opportunity to propose a repayment plan for mortgage arrears and ongoing payments.
- Filing for bankruptcy triggers an automatic stay, stopping most creditors’ actions, calls, and letters. Automatic stay can temporarily halt actions like foreclosure and utility shut-offs.
- After filing, creditors cease collection efforts, and the debtor undergoes financial document submission, attends a meeting of creditors, and completes a debtor education course.
- There is an additional repayment plan confirmation hearing and adherence to the three- to five-year payment plan for Chapter 13.
Whether it’s Chapter 7, Chapter 11, or Chapter 13, our experienced Portland bankruptcy attorneys are here to help you through the process, providing clarity and support at every step. Contact us for a free consultation, and let us be your advocate in achieving a fresh financial start in Portland, OR.
What is Bankruptcy?
Bankruptcy is a legal process designed to provide individuals and businesses overwhelmed by debt with a fresh financial start. It involves a court-supervised procedure where a debtor’s assets are evaluated, and their outstanding debts are either restructured or eliminated. The primary goals of bankruptcy are to offer debtors relief from unmanageable financial burdens and provide a fair distribution of assets to creditors.
There are different types of bankruptcy, each governed by specific chapters of the bankruptcy code. The two most common types for individuals are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
- Often referred to as “liquidation” or “straight bankruptcy.”
- Involves the sale of nonexempt assets to repay creditors.
- Most remaining debts are discharged, meaning the debtor is no longer legally obligated to pay them.
Chapter 13 Bankruptcy
- Involves a court-approved repayment plan over three to five years.
- Debtors can keep their assets while repaying a portion or all of their debts.
- Commonly used by individuals with a regular income who want to catch up on missed payments.
For businesses, Chapter 11 bankruptcy is more common. It allows a business to reorganize its debts and operations while continuing to operate. Chapter 12 bankruptcy is specifically designed for family farmers and fishermen.
Remember that bankruptcy is a serious financial decision with long-term consequences on credit. However, it can provide relief and a chance for a fresh start for those facing overwhelming debt and financial hardship. The specific rules and procedures can vary, and consulting with our qualified Portland bankruptcy attorney is often advisable to ensure the process is navigated correctly.
How Does Bankruptcy Work in Oregon?
In many aspects, initiating bankruptcy proceedings in Oregon closely mirrors the process in any other state. Bankruptcy operates under federal law rather than state law, aiming to dissolve agreements between debtors and creditors and provide a clean slate.
However, Oregon’s regulations play a crucial role, especially in determining the assets you can retain during bankruptcy. Additionally, understanding specific filing details in Oregon becomes essential, and we will delve into these particulars after covering some fundamental aspects.
Does Declaring Bankruptcy in Oregon Wipe Away What I Owe?
Bankruptcy can erase many bills, such as credit cards, medical expenses, and personal loans. You might even eliminate a mortgage or car payment if you’re okay with giving up the house or car linked to the debt. However, not all debts can be cleared. It’s crucial to ensure that bankruptcy will eliminate enough bills to be worthwhile.
Certain debts, like overdue support payments and recent tax obligations, won’t leave you in bankruptcy. Student loans are challenging to discharge, usually requiring a separate legal process, although there have been current efforts to simplify the student loan discharge process with a new form in 2023.
Am I Eligible for Bankruptcy in Oregon?
There are a few things to consider to qualify for bankruptcy. If you’ve filed for bankruptcy before, check if enough time has passed for you to file again. The waiting period depends on the type of bankruptcy you filed previously.
For Chapter 7 Bankruptcy:
You qualify if your family’s income is lower than the median income for your state and family size. Calculate your total income for the last six months, double it, and compare it to the charts on the U.S. Trustee’s website. You can use the Quick Median Income Test online for an easy check.
If you make too much, you might still qualify after completing the means test. If, after deducting expenses, you don’t have enough left to pay into a Chapter 13 plan, you qualify for Chapter 7.
For Chapter 13 Bankruptcy:
Qualifying for Chapter 13 can be costly because extra benefits come with a high price.
To qualify:
- you’ll pay the larger of your priority nondischargeable debt,
- the value of nonexempt property,
- or your disposable income.
How Can I Protect My Property in Oregon with Bankruptcy Exemptions?
You won’t lose everything when you declare bankruptcy. To safeguard your belongings, you’ll use laws called bankruptcy exemptions. We’ve outlined the essential exemptions below, and understanding them will help you keep as much as possible in your case.
- There are two types of property: exempt (protected by an exemption) and nonexempt. If an exemption doesn’t cover a particular item, you might lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan.
- You can pick the state or federal exemption list, but you cannot mix them. If you use state exemptions, you can also use federal nonbankruptcy exemptions.
- For couples filing together, there’s a chance to double the exemption amount in many cases if both own the property.
- All filers, regardless of the chosen exemption list, can protect certain retirement accounts under federal law. That includes plans like 401(K)s, IRAs, and more, up to $1,512,350 per person for cases filed between April 1, 2022, and March 31, 2025.
Bankruptcy Exemptions in Oregon
Many folks put in great effort to get specific things they own. If you’ve lived in Oregon for over two years, you can benefit from some of the most extensive state exemptions in the U.S. Here are a few notable ones:
- Homestead exemption: Oregon law lets you protect up to $40,000 of your home’s value during bankruptcy. If your home’s value is less than that, the trustee can’t take it, even if you’re going through bankruptcy.
- Motor vehicle exemption: You can protect up to $3,000 of your car’s value. Since cars lose value quickly, especially used ones, they often have little financial impact in bankruptcy.
- Current wages: The law safeguards 75 percent of the wages you’ve earned but haven’t been paid yet. Also, filing for bankruptcy stops wage garnishment, so you can still cover your monthly bills.
- Personal property: Up to $7,000 worth of furniture, electronics, clothes, and other personal items are protected. The value considered is what these items would be worth in a garage sale, not what you originally paid for them.
- Retirement accounts: Your IRAs, 401(k)s, and similar accounts are safe during bankruptcy. Social Security, government benefits, workers’ compensation, and personal injury awards are also exempt.
- Wildcard: Oregon allows you to protect up to $400 of nonexempt property, like money in a savings account or a small vacation timeshare.
Remember, if you’re married, you can often double these exemption amounts, except for homestead and household goods.
When Can I Use Oregon’s Bankruptcy Exemptions?
You can apply for bankruptcy in Oregon after living there for over 180 days. But, to use Oregon’s exemptions, you must have been an Oregon resident for at least 730 days before filing. If not, you’d use the exemptions from your previous state.
If you’ve lived in different states in the two years leading up to your bankruptcy, you’d use the exemptions from the state you lived in for most of the 180 days before those two years.
Avoid Issues with Bankruptcy Exemptions in Oregon
Be cautious when choosing which belongings to protect. The bankruptcy trustee, the person in charge of overseeing your case, will examine your exemptions. If the trustee disagrees with your choices, they’ll probably attempt to settle the matter informally. If that doesn’t work, the trustee might raise the issue with the bankruptcy court, and a judge will determine whether you can keep the property.
How much are the court fees to file for bankruptcy?
It depends on the type of bankruptcy you choose. There’s a $338 filing fee for Chapter 7 unless you qualify for a fee waiver. Chapter 13 has a $313 filing fee. In addition, you’ll need to budget around $50 to $75 for credit counseling and debt management courses.
How Does Filing for Bankruptcy Affect Businesses?
How bankruptcy affects your business depends on the type of bankruptcy and your business structure. If you’re an individual or a sole proprietor, Chapter 13 can help reorganize personal and business debts. However, it doesn’t impact corporations, partnerships, or limited liability companies. These types of businesses usually file under Chapter 7 or Chapter 11.
Chapter 7 erases debts for sole proprietors because the business isn’t a separate entity. The assets are considered personal, and a trustee uses them to pay creditors. But if your business is a partnership, corporation, or limited liability company, filing Chapter 7 won’t affect it.
Chapter 11 is a business reorganization bankruptcy that allows your business to keep operating while restructuring debts with a repayment plan. It’s complex and pricey, suitable for business owners aiming to rebuild. Small businesses can expedite the process, but there’s a 300-day limit to propose a repayment plan.
Can Bankruptcy Stop Foreclosures or Repossessions?
Filing for bankruptcy can often halt foreclosures or repossessions through an automatic stay. This legal action requires creditors to stop collection efforts, such as seizing property. Whether it halts or delays these actions depends on the bankruptcy type.
Chapter 7 buys time, delaying a foreclosure for 3-4 months. It lets you talk to your lender about changing mortgage terms. However, the lender may ask the court to lift the stay. Chapter 13 stops a sale but lets you propose a repayment plan covering arrears and ongoing mortgage payments. If the plan is approved and you make timely payments over 3-5 years, you can avoid foreclosure and might even remove junior mortgages.
A Chapter 7 stay can halt repossession temporarily for cars, but the lender may request the court to lift it unless you catch up on payments. If you can’t, the court may allow repossession. In Chapter 13, you could prevent repossession by addressing arrears and future payments in your repayment plan, and making protection payments until the plan is approved.
Can Bankruptcy Stop Collection Calls and Creditor Harassment?
An automatic stay kicks in when you file for Chapter 7 or Chapter 13 bankruptcy. That means that most creditors have to stop bothering you. They can’t call or send you letters, and they’re not allowed to take you to court or pursue most debts. They’re also not allowed to put liens on your property or take money directly from your paycheck.
This automatic stay can also briefly stop actions like foreclosure, utility shut-offs, and evictions. However, it might not halt everything, like legal actions for child support or certain IRS matters. Sometimes, creditors can ask the court to lift the stay in specific cases.
What Occurs After Submitting A Bankruptcy Filing in Oregon?
After you file for bankruptcy in Oregon, your creditors will stop bothering you shortly, usually within a few days. That happens because the court sends notice of the “automatic stay,” which prevents most creditors from asking you to pay them. Here’s what comes next:
- You’ll provide financial documents to support the information in your bankruptcy paperwork.
- You’ll attend the 341 meeting of creditors, which is mandatory for all filers.
- You’ll finish a debtor education course and submit the completion certificate.
These steps are necessary before you receive a Chapter 7 bankruptcy discharge. If you’re filing for Chapter 13, you’ll also attend a repayment plan confirmation hearing and follow through with the three- to five-year payment plan.
Let Us Guide You Through the Intricacies of Bankruptcy Information You Need in Portland, OR!
Facing the challenges of bankruptcy information you need in Portland, OR, can be overwhelming. The process is intricate, whether you’re navigating the complexities of Chapter 7 or Chapter 13, understanding exemptions, or ensuring you qualify. But you’re not alone in this journey.
At Michael D. O’Brien & Associates, P.C., we practice guiding individuals through the nuances of bankruptcy in Oregon. Our experienced team understands the pain points you’re dealing with—protecting assets, qualifying for the appropriate chapter, and ensuring a smooth process. Let us be your legal ally in reclaiming financial stability.
Don’t let the complexities of bankruptcy hold you back. Contact us today for a free consultation, and let Michael D. O’Brien & Associates, P.C. be your partner in securing a brighter financial future.
Aside from bankruptcy, we provide legal services on debt alternatives and estate planning in Bend and Clackamas.
