A Chapter 7 bankruptcy is a liquidation bankruptcy. Speaking in a very general sense, this means that your property is turned over to a trustee when you file for this type of bankruptcy. The trustee is required to liquidate the property and the proceeds will be used to pay back as much of your debt as possible. This may sound like a rather unfavorable arrangement, but it is not as bad as it sounds, because most or all of your property is considered to be exempt. This means that you won’t have to surrender this property to the bankruptcy trustee.
If you own your own home, it is probably your most important possession. We practice law in the state of Oregon, with offices in Portland, Eugene, Salem, Medford, and several other cities. In Oregon, up to $50,000 in equity in your home including a mobile home is exempt when you file for a Chapter 7 bankruptcy. We also have offices in the state of Washington serving Vancouver and Tri-Cities residents. In Washington, the exemption for homeowners is $125,000.
Your home is not the only type of property that will be exempt when you file for Chapter 7 in Oregon. Money you received from alimony and child support payments, social security or pensions is all exempt. There are additional exemptions if you receive a settlement for a bodily injury claim. In addition, if you receive compensation to account for a loss of future earnings, you will not be required to surrender it to the trustee. There are additional exemptions for cars, furniture, personal items, guns and other items. If a person does not need to use the State homestead exemption (see above), then Federal exemptions can be used which include a “wildcard” exemption in the amount of $13,100 which can be used to protect any asset.
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We understand the fact that it can be disconcerting to speak about sensitive financial matters with an attorney that you just met. The members of our team have been assisting people for many years, and we chose this area of the law because we sincerely want to help others. When you engage our services, you will speak with a friendly, down to earth bankruptcy attorney who will answer all of your questions and help you make the right decisions. If you would like to set up a complimentary case evaluation, send us a message through the following link: bankruptcy lawyer.