Oregon Bankruptcy Laws: What are the Laws regarding Bankruptcies in the State of Oregon?
There are several reasons why you are considering filing for bankruptcy in Oregon. When you can’t afford to pay your bills at the moment, following this route will be a huge boon for your finances.
The federal court is the one which will handle your bankruptcy case. When you choose this option, creditors will have to stop all activities regarding the collection of debt. They have to wait until you sort out how much you owe, as per the law of the country.
However, due to the number of laws associated with this process, several people tend to shy away from filing bankruptcy. As a result, they are unable to get the financial relief they need to resolve their situation. Here is what you need to know about the laws regarding bankruptcies in the state of Oregon:
What are the types of bankruptcies in Oregon?
Chapter 7 in Oregon
When you opt for Chapter 7 bankruptcy, it allows you to start new, as it wipes out the majority of your debts. A trustee assigned to handle your case will place all your non-exempt property on sale, and the proceeds will go to your creditors. At the same time, the trustee will get a cut for handling the distribution among various parties.
However, debt such as student loans, child support, and alimony will remain unaffected by Chapter 7 bankruptcy. If you wish to keep the secured property, such as your house or furniture, you need to sign a reaffirmation agreement. To avail this option, you must bring the payment for these debts up-to-date.
Chapter 13 in Oregon
In Chapter 13, you agree to come up with a three – five year plan to repay your debts. The advantage is that you get to keep your non-exempt property. The amount you have to compensate should be equal to how much the creditors will receive if you went with Chapter 7 bankruptcy.
At the same time, you should have enough income to meet your living expenses and make the payments. With this option, you get the opportunity to bring your overdue debt amount up-to-date.
Federal exemptions in Oregon
When you file for bankruptcy in Oregon, you have the option of choosing between federal and the state’s bankruptcy exemptions. However, you can’t select a handful of exceptions from each list and combine them.
Joint bankruptcy in Oregon
If you have a spouse, you and your partner have the option for filing for joint bankruptcy. Each one has the right to register for the complete exemption amount. Keep in mind that these laws don't apply to livestock, household goods, and homestead exemption are not available.
How to file for bankruptcy in Oregon?
Before you can start the process of filing for bankruptcy, you need to participate in a credit counseling course. You should complete it at least 180 days before you submit your documents. Similarly, the state of Oregon expects you to complete a debtor education course so that you can receive a discharge in your case.
For Chapter 7 bankruptcy, you need to meet the requirements of the Means Test, which compares your family income with the state’s median income. To calculate your disposable income, you will have to subtract the living expenses from how much you earn every month. As every county has a different rate, you should find out to ensure you meet the requirements of the Means Test.
Do keep in mind that the average household income for Oregon tends to change, so make sure you get the latest data. If you wish to file Chapter 7 bankruptcy, you need to pay $306 and $281 for Chapter 13. You can avail waivers or make the payments in installments if you are unable to afford the filing fees.