A Chapter 7 is a commonly utilized form of bankruptcy that can give you a fresh start if you are incapable of meeting your financial obligations. As long as you do not have enough disposable income to pay back your debts over time, you can probably qualify for this form of bankruptcy. Unsecured debts, which would include unpaid medical bills and credit card debts, could be discharged if you successfully file for a Chapter 7 bankruptcy.
This is a liquidation bankruptcy, so you are required to turn over all of your nonexempt property to a bankruptcy trustee. The property would comprise your bankruptcy estate, and the trustee would be required to liquidate the property to pay back some of the debt. Certain debts are considered to be priority debts, and they would be paid first. Once the property is liquidated and the monies are exhausted after the disbursements, most unsecured debt that is left unpaid would be discharged.
When you hear about the bankruptcy estate, you may have some serious concerns with regard to surrendering your property so it can be liquidated. Along these lines, there is some good news to report: some of your most valuable property is exempt. We have offices in Eugene, Portland, Medford, Salem, and several other cities in Oregon. In our state, if you own a home we can protect up to $47,000 in equity as exempt.
Plus, health savings accounts are not subject to liquidation, and you could keep up to $23,000 if you receive a settlement or a reward via a personal injury claim. Up to $3775 in equity in a motor vehicle would be exempt for each individual as well. These are a handful of the exemptions, but there are a number of others.
Our Doors Are Open!
You have recourse if you are faced with overwhelming debt that is having a negative impact on your life. A Chapter 7 bankruptcy filing is one possibility, but there are other debt relief options that you may want to explore. If you would like to discuss your situation with one of our licensed bankruptcy attorneys, our doors are wide open. We offer free consultations to people throughout the state of Oregon, and we also have offices in Vancouver, and Tri-Cities in Washington. To schedule an appointment, send us a message through our contact page.