Chapter 7 Bankruptcy

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The bankruptcy attorneys at OlsenDaines can help you get your financial life back on track, and for many, Chapter 7 bankruptcy will be the right choice. This is a type of bankruptcy that will erase many different forms of debt so that you can move forward with a fresh start — and the benefits are immediately realized.

When you successfully file, you receive an “automatic stay,” this will put a halt to collection efforts, garnishment attempts, foreclosures, repossessions, and utility suspensions.

Do I Qualify for Chapter 7 Bankruptcy?

To qualify for Chapter 7 bankruptcy in Oregon or Washington, you must be able to pass a “means test.” If your income is less than the median income in the state of your residence, you automatically pass this means test. However, under certain circumstances, you may still be able to qualify for Chapter 7 even if your income exceeds this amount. We can apply our expertise to determine whether you will be able to qualify for this form of bankruptcy.

File for Chapter 7 Bankruptcy

Below is a list of common debts that can be washed away through a successful Chapter 7 bankruptcy filing:

Health care bills
Overdue utility charges
Outstanding credit card balances
Checks written on insufficient funds
Lease agreement deficiencies
Collection agency accounts

Keep in mind, you can only receive a Chapter 7 discharge once every 8 years. Other rules may apply if you previously received a discharge in a Chapter 13 case. No one can make you pay a debt that has been discharged, but you can voluntarily pay any debt you wish to pay. You do not have to sign a reaffirmation agreement or any other kind of document to do this. Some creditors hold a secured claim (e.g., the bank that holds the mortgage on your house or the loan company that has a lien on your car). You do not have to pay a secured claim if the debt is discharged but the creditor may take the property.

Can You Keep Your House and Car in a Chapter 7?

If you have limited equity and you are up to date on your mortgage payments, you can retain ownership of your home after you file for Chapter 7 bankruptcy. The same thing is true for your car if you are making payments. After you rid yourself of all your other forms of debt, you should be able to pay your mortgage and your car payment comfortably as you begin to rebuild your credit history.