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Bankruptcy Chapter 7 Oregon

Important: Chapter 7 Qualification Via Oregon Means Test

Chapter 7 Bankruptcy Oregon: Cost and Qualification in 2021

An important element in filing for bankruptcy relief is the Bankruptcy Means Test. The Means Test is a bankruptcy form that calculates your average monthly and annual income. The test compares your income against the median income of other households in Oregon.

If your average annual income or median income is below the Oregon median income, you may qualify for a bankruptcy discharge under Chapter 7. You can estimate whether you qualify for a Chapter 7 bankruptcy using the free Oregon Chapter 7 Bankruptcy Means Test Calculator below.

How To File Bankruptcy In Oregon For Free

If you are comfortable filing Chapter 7 in Oregon without a lawyer , you can absolutely do so, and the court has even published a detailed guide for pro se debtors. Alternatively, you may also be able to find a pro bono lawyer, or use Upsolve to assist you in completing all the forms for free. If your monthly income is below a certain amount, you may also qualify for a waiver of the court filing fee, saving yourself the $338 that folks who are in a Chapter 7 bankruptcy in Oregon normally have to pay.

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Different Types Of Bankruptcy

Various types of bankruptcy exist. The kind you file for depends on your specific situation.

The most common bankruptcies are Chapter 7 and Chapter 13:

  • Chapter 7 bankruptcy is the type most people think about when they consider this type of financial relief. If it is granted, assets are sold to pay off some of the amount owed to creditors, and the remaining balances are eliminated. To qualify for Chapter 7, you must pass a means tests to determine whether you meet the income threshold.
  • Chapter 13 bankruptcy may be an option for those who fail to pass the Chapter 7 means test and have an income to pay back some of their debts. If you are granted this type of relief, you, your Bend bankruptcy attorney, and the court will develop a 3- to 5-year payment plan. After you successfully complete the plan, your remaining debts are eliminated.

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Take A Debtor Education Course

The credit counseling course you took before filing bankruptcy allowed you to become a debtor in bankruptcy. Youâre also required to complete the personal financial management course before the court will discharge your bankruptcy case. This course focuses on financial management and gives you some easy-to-use financial management tools to make the most of your fresh start.

You need to take the course from a state-approved provider, but you can take it online or over the phone. After you finish, youâll receive a certificate of completion. You must file this with the court before it will discharge your bankruptcy. If you donât send the certificate within 60 days of the 341 creditorâs meeting, the court can close the case without a discharge, so donât be late! You can take the course before the meeting to get it over with.

Introduction To Oregon Bankruptcy

How To File Bankruptcy In Oregon

Bankruptcy isnt fun, but its an opportunity to learn, reflect, and regroup. This guide can help you get familiar with the basics, the bankruptcy process, and determine the best course of action for your situation. Our clients resolving to move forward often tell us how much less daunting the experience is than theyd imagined. Get in touch with us when youre ready and well help you explore your options in greater detail.

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Understand Alternatives To File Bankruptcy

There are many bankruptcy alternatives to consider. We will cover the two most common alternatives, but you can find more in our bankruptcy alternatives article. As a reference, filing Chapter 7 bankruptcy is often the least expensive and the shortest.

Debt Settlement

Debt settlement is also known as debt negotiation, debt relief, or a debt consolidation program . In debt settlement, a company or you will negotiate with your creditors for a lower amount. You can save money and avoid filing bankruptcy. You may also be exposed to lawsuits, so its important to understand which creditors are likely to sue. A debt settlement programs often last 2 5 years.

Debt Management

Debt management is also known as credit counseling. In debt management, a company will negotiate with your creditors for a lower percentage interest rate. You can save money on interest and avoid filing bankruptcy. Debt management can be more expensive than debt settlement and Chapter 13. Debt management programs often last 5 years.

Preparing For Chapter 7 Bankruptcy

Theres some protocol to follow in the months before filing for bankruptcy. Failing to follow these instructions could undermine your efforts.

Dont Pay Creditors It seems counterintuitive and you should definitely make routine payments. But any large or unusual payments could be viewed as preferential transfers. That means one creditor has benefited unfairly over others.

No New Debt A new creditor could claim you took out a loan or ran up the balance on a credit card without intending to pay it back. Legally, thats fraud and it will not be forgiven.

No Unusual Transactions Dont stray from the routine. Dont transfer titles of cars or homes. Dont buy luxury goods. Dont transfer your business or remove your name from it. They can all be classified as fraud.

Be Truthful You are required, while filing for bankruptcy, to provide full and complete information. You must disclose any debt, assets, accounts or other financial information. Failure to comply could lead to fraud and potential criminal charges.

Dont Touch Retirement Funds You are generally allowed to keep retirement plans and accounts, so keep them safe while considering bankruptcy and dont use those funds to pay down debt.

Never think you can get away with something sneaky or dishonest. Your bankruptcy lawyer is always a good resource for what you should and shouldnt do.

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Oregon Legal Aid Organizations

If you think Chapter 7 is right for you but you don’t have enough money to pay for a lawyer, look into legal aid options. These organizations provide low-cost or even free legal services for civil cases. Getting legal advice can be a good option for people who arenât comfortable filing on their own. The Oregon Bankruptcy Court also has a list of low-cost legal organizations.

Oregon Chapter 7 Bankruptcy Court Locations

Things to know when considering chapter 7 bankruptcy

Many 341 meetings of creditors have been over the phone or over Zoom due to the pandemic. That said, you may want to see where the courthouse is in Oregon if there are any meetings that need to take place in person. Below are the court locations for filing bankruptcy based on the bankruptcy district.

Vanesa Pancic 356-0803

In addition to the above, review Oregon local bankruptcy rules before filing a bankruptcy case. Some local rules may differ slightly from the Federal Bankruptcy Rules.

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Typical Filing Fees To File For Bankruptcy In Oregon And Washington

Consumers often wonder about much it will cost to file a bankruptcy in Oregon & Washington. Our rates are competitive. The amount of attorneys fees varies based upon the type of case you file, and the complexity of your case. Many no asset Chapter 7 cases can be filed for as little as $1100. Below is some information about the cost of filing for bankruptcy.

Cost for Filing Chapter 7 Bankruptcy in Oregon

The U.S. Bankruptcy Court will charge a $338 fee for filing a Chapter 7 bankruptcy in Oregon.

The Oregon & Washington bankruptcy lawyers of Baxter & Baxter, LLP, charge as little as $1,100 for a routine chapter 7 bankruptcy without contested matters or adversary proceedings. Every case is different, and the fee may differ depending on anticipated issues. We can work out a payment plan, including advising consumers on how to postpone payment of certain bills to gather the funds to file for bankruptcy.

Cost for Filing Chapter 13 Bankruptcy in Oregon

The U.S. Bankruptcy Court will charge a $313 fee for filing a Chapter 13 bankruptcy in Oregon.

Avoid These Mistakes Before Filing For Bankruptcy

Before you file for Chapter 7 bankruptcy, the courts will investigate all past transactions you made within a specific time frame. This look back period is typically between one and two years prior to filing, but it can extend up to ten years.

You can avoid the majority of common errors by delaying the filing of your bankruptcy until these deadlines have passed. Due to the fact that this is not always the case, it is crucial to consult with an experienced bankruptcy attorney to avoid allegations of bankruptcy fraud.

Avoid the following common mistakes before filing Chapter 7 bankruptcy:

  • Avoid selling your assets. Contrary to popular belief, transferring assets out of your name will not shield you from the reach of the bankruptcy court. Even if the transfer was innocent, these transfers could lead a bankruptcy court to conclude that you committed bankruptcy fraud.
  • Do not favor creditors. These types of payments to favored creditors are referred to as preferential transfers and may result in a clawback lawsuit, in which a bankruptcy court trustee sues the debtor to recover the money within the courts jurisdiction.
  • Avoid making large or extra purchases with your credit card. Unless for essentials such as gas, housing, or food, it is preferable to avoid making credit card purchases.
  • Avoid depositing out of the ordinary sums into your bank account. It is best to avoid depositing any money into your bank account that is not your salary or payment.

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Will I Lose My Car

Like the exemption described above for your home, there is a similar exemption in place for car owners. The most important fact here is that if you do not own your car, or you are not currently making payments, you cannot keep your car even if it does fit in an exemption. Therefore, it is important that you stay up to date on your car payment if you plan to keep it.

You first must determine how much equity is in your car. If you own your car with no loan, the equity in your car is its total fair market value. If you do have a loan, equity is the totally fair market value minus the amount left on your loan.

Finally, if you have leased a vehicle or for some other reason have no other ownership rights, you have no equity to defend. If you have no equity, your car cannot be sold, but the lender may repossess your car. In Colorado, an individual can exempt $7,500 in equity .

Just as if you have equity in your car over the allowed exemption, you can use a Chapter 13 bankruptcy to protect the car and pay back the equity through the bankruptcy.

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Advantages Of Chapter 13

Chapter 13 Bankruptcy Attorney Albany &  Salem, Oregon (OR)
  • You dont necessarily have to give up your property like you do in a Chapter 7. You get the chance to consolidate your debts and extend them over the life of the Chapter 13 plan.
  • Your cosigner might be protected under a Chapter 13 petition, however you should consult with an attorney prior to filing to fully understand this protection.
  • Chapter 13 can allow you to save your home. If you are in foreclosure, filing a Chapter 13 Petition will stop the foreclosure and can allow you to cure the payments you have fallen behind on. Please understand that you are required to make your regular mortgage payments during the plan in addition to the plan payments.
  • You will not be contacted by your creditors while your Chapter 13 petition is pending.

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Chapter 13 Bankruptcy Petition

The easiest way to understand Chapter 13 Bankruptcy is to think of it as a way to get back on track with the payments you have fallen behind on. If you have a regular source of income, Chapter 13 allows you to develop a plan to pay some or all of your debts. This plan usually lasts anywhere from 3 to 5 years, but cannot exceed 5 years. Basically, a Chapter 13 bankruptcy acts like a consolidation of all of your debts. You make payments to the Chapter 13 trustee, who distributes the payments to your creditors.

What Assets Are Exempt When I File For Bankruptcy

When you file for bankruptcy, your property gets put into an estate. The trustee assigned to your case is responsible for selling your estate assets to pay your creditors.

However, because bankruptcy laws are in place to help people get fresh starts, it would be counterproductive to require you to give up all of your property. Doing so would essentially mean that you would have to start your whole life over from scratch. Thus, you may be able to keep some of your property after filing for bankruptcy.

The assets you keep are referred to as exempt property. They are considered exempt because the trustee cannot liquidate them to benefit your creditors. The assets you cannot retain are referred to as non-exempt property because they are not spared from being sold.

The assets you might be able to keep may include your:

  • Retirement accounts

Property that may be exempted in a bankruptcy case depend on state and federal laws, as well as your specific situation. If you’re filing for bankruptcy and want to protect your assets, speak with Baxter Harder, LLC. We can clearly explain the laws and help you retain ownership of your important assets.

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How Do I Know If Filing Bankruptcy Is Right For Me

There isnt an easy way to determine this. The easiest way to figure this out is to go and talk to a reputable credit counseling agency or to a bankruptcy attorney to see what your options are. If you are unable to pay your debts, bankruptcy may be your best option, but you should consider all options before filing for bankruptcy protection. There are long term legal and credit implications, so you should make sure you fully understand those before you decide to file bankruptcy. The easiest way to do this is to discuss your situation with a bankruptcy lawyer.

Oregon Chapter 7 Bankruptcy Credit Counseling And Debtor Education Courses

Bankruptcy Means Test – Oregon

When you file for bankruptcy relief under Chapter 7 bankruptcy, you must complete two bankruptcy courses to receive a bankruptcy discharge. This includes a credit counseling course prior to filing a bankruptcy case, and a debtor education course after filing. See below the approved courses for Oregon

The United States Trustees office has approved state-specific companies that offer bankruptcy courses. You can access a list of companies in Oregon offering bankruptcy courses on the UST website. Both courses are available online for a small fee.

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Does A Trustee Check Your Bank Accounts When You File

The trustee has the right to see your bank statements and almost always wants to see the last two months, up to and including the date that your case was filed. You have to provide us with 6 months of statements for every account in your name so that the trustee can get them from us if they want them.

What Chapter 7 Cannot Do

While chapter 7 can stop foreclosure for a few weeks or months, it does not allow you to catch up the missed payments on your home. Also, chapter 7 cannot discharge recent taxes, child or spousal support, or student loans. Chapter 7 cannot wipe out any of your debts if you have filed chapter 7 within the past 8 years.

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    Help My Income Exceeded The Chapter 7 Means Test Allowable In Oregon

    Chapter 7 Bankruptcy in Oregon

    If your median income is above the state median income, you may need to look at part 2 of the means test or at an alternative.

    The Means Test is a two-part test, so it is not a simple pass-fail test. If you fail the first section, you can pass the second section and still qualify under Chapter 7.

    You can learn more about passing the Chapter 7 means test when income exceeds the median.

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