Is Bankruptcy Right for Me?

Get Answers from a Portland Bankruptcy Attorney

You may be wondering, “Is bankruptcy right for me?” You should consider many factors when evaluating whether getting a bankruptcy is beneficial for you. There are also many misconceptions about the bankruptcy process, but there are many benefits to filing a bankruptcy. At Michael D. O’Brien & Associates PC, we can provide you with a free case evaluation to assess whether bankruptcy is the answer to your financial needs. Our experienced Portland bankruptcy attorneys can also discuss any bankruptcy alternatives that might fit your needs.

Is Bankruptcy Right for Me? A Bankruptcy Can Wipe Out Your Debts

Not all debts get discharged when you file for bankruptcy. However, filing bankruptcy can help you get rid of dischargeable debts (debts that can be eliminated) to help you pay off your nondischargeable debts.

A few examples of dischargeable debts are:

• Credit card debts
• Medical bills
• Past-due utility bills
• Personal loans
• Non-dischargeable debts:

Non-dischargeable debts:

• Past-due child support payments
• Past-due income taxes
• Student loans

If you have debts that you can no longer pay, or you want to wipe out, filing bankruptcy can help. Call our bankruptcy law firm in Oregon so we can help you get a fresh start. 

Is Bankruptcy Right for Me? A Bankruptcy Can Help You Keep Your Car or Home

Filing bankruptcy can help you stop foreclosure and save your home. If you’re late on your mortgage or car loan payments, filing for Chapter 13 bankruptcy can help you stop repossession and catch up on your missed payments.

Filing Chapter 7 can’t make your loan payment current, but it can free up your budget and get rid of other debts. To keep a car or home in this chapter, you need to be current on your mortgage payments when you file bankruptcy.

If you’re at risk of losing your home or your car, we can help you stop a foreclosure or repossession. Consult with one of our Portland bankruptcy attorneys to know more.

Automatic Stay

The different types of bankruptcy chapters all work by stopping the debt collection process. Once you file any kind of bankruptcy, the “automatic stay” comes into effect and stops creditors from making any debt collection effort. It will help you address your financial problems in an orderly manner. 

The automatic stay will temporarily stop:

• Debt collections
• Lawsuits
• Car repossession
• Home foreclosure
• Utility disconnections
• Multiple wage garnishments
• Other debt collecting efforts

What an Automatic Stay Can’t Stop:

• Certain tax proceedings
• Child support or Alimony/Spousal Support
• Criminal proceedings
• Pension loans

Deciding whether to file for bankruptcy can be confusing and overwhelming. Reaching out to an experienced Portland bankruptcy lawyer can help you get familiar with the bankruptcy process and other debt alternatives.

If you’re interested to know more about the bankruptcy filing, contact our Portland bankruptcy experts today. Call 503-852-9047 for a case evaluation with an Oregon bankruptcy attorney.

What are the Different Types of Bankruptcy?

Chapter 7 Bankruptcy

Chapter 7 is a type of liquidation bankruptcy where you can liquidate your properties except certain exempt assets. A bankruptcy trustee will sell your nonexempt properties to pay off your debts. A Chapter 7 bankruptcy process usually lasts for three to six months. Once the liquidation process is complete, the remaining debts may be eligible for discharge. 

Chapter 7 works well for individuals who own a few properties, have credit card debt, personal loans, or have huge medical bills. However, not everyone qualifies for Chapter 7 bankruptcy. You’ll only be eligible if your income is smaller than Oregon’s median income. If you have a higher income, you may still qualify, but only after paying your monthly debts, and you no longer have money left to be eligible for a Chapter 13 debt repayment plan. 

There are also other requirements for Chapter 7. For instance, you won’t be eligible for Chapter 7 if you’ve already received a bankruptcy discharge in the last 6 to 8 years. 

When you file for Chapter 7 bankruptcy, you’re technically leaving your properties and debts in the hands of the bankruptcy court. A “bankruptcy trustee” appointed by the court will oversee your properties and ensure that your creditors are paid.

If you’re considering filing bankruptcy under Chapter 7, connect with a trusted Portland bankruptcy attorney. Call us today at 503-852-9047, so we can provide you with a debt evaluation.

Chapter 13 Bankruptcy

Filing and completing a Chapter 13 bankruptcy case can sometimes be more complicated than Chapter 7 bankruptcy. Chapter 13 Bankruptcy allows you to keep your properties and assets, such as your car and home while repaying your debt through a debt repayment plan that lasts for about three to five years. However, not everyone is eligible to file bankruptcy under Chapter 13. You can only file for Chapter 13 Bankruptcy if 

• You have enough steady income to commit to the debt reorganization plan
• You’re not a business or enterprise.
• Your unsecured debts and secured debts don’t exceed the Chapter 13 bankruptcy debt limitations. 

If you think that a Chapter 13 bankruptcy can help you with your financial concerns, call our Portland bankruptcy law firm at 503-852-9047. We can help you assess your financial situation and provide the best debt solution possible. 

Chapter 11 Bankruptcy

A bankruptcy filing under Chapter 11 is designed to allow struggling small businesses and enterprises to restructure their finances and keep their business. It is also great for individuals who didn’t qualify for a Chapter 13 debt reorganization plan. 

Chapter 11 can help business owners struggling with paying their rent or employees or going through some other financial burden. 

The goal of Chapter 11 is to help the filer keep their business running and repay their creditors. Modifying interest rates, moving due dates, and discharging debt are possible under Chapter 11. 

If you’re a business owner or an individual who’s struggling with financial debt, then a Chapter 11 bankruptcy may be right for you. Call our experienced Portland bankruptcy lawyers to know more about Chapter 11 bankruptcy.

Want to Know if Bankruptcy is Right for You? Consult a Portland Bankruptcy Attorney!

Declaring bankruptcy is a huge move, and seeking assistance from a bankruptcy law firm in Oregon can make the process easier. At Michael D. O’Brien & Associates PC, we have compassionate Portland bankruptcy attorneys who can show you the different types of debt, assist you in the bankruptcy process and paperwork. Call us today so we can give you a fresh start.