A Chapter 7 bankruptcy can be a good choice for people who are looking for a fresh start. Many debts can be discharged through a Chapter 7 filing, but there are some types of debts that are not dischargeable. Before we get into the distinctions, we should explain a bit about Chapter 7 eligibility. To be able to file for this type of bankruptcy a person needs to pass a means test.
We have offices in Medford, Eugene, Portland, and numerous other cities in Oregon. If you live in the Beaver State, and your income is less than the median, you will pass this means test, and you would be able to qualify for a Chapter 7 filing. Even if you do not pass the test on this level, you may still be able to qualify if you have very limited disposable income after to your essential responsibilities are met.
Secured debts are debts that have a lien on property that was purchased with credit. If a person wants to keep collateral during a chapter 7, that person needs to stay current on the payments or the lender will be able to repossess the collateral. Other debts that survive bankruptcy are spousal support and child support, student loans and most taxes. Some taxes can be eliminate in bankruptcy and an experienced bankruptcy attorney can analyze a person’s taxes to determine if they can be discharged.
Debts that can be discharged include, but are not limited to, unsecured debts like credit card balances, health care bills, accounts that have been turned over to collection agencies, personal loans, utility bills that are overdue, and checks written on insufficient funds (assuming there was no criminal intent) and business debts.
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