Our law firm offers bankruptcy assistance for clients in a number of cities in Oregon and Washington, including Salem, Portland, Grants Pass, Bend, Vancouver, and TriCities. When you decide to file for bankruptcy in one of these states, you have multiple options, and the circumstances will dictate the ideal course of action. For most individuals, it will be a choice between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy.
Chapter 7 is a “liquidation” bankruptcy, and you receive an automatic stay when you file. This temporarily prohibits creditors from trying to collect on debts that are outstanding. When you successfully file this type of bankruptcy, your unsecured debts like credit card balances and medical bills are completely eliminated. If you are a homeowner and you are current on your mortgage payments, as long as you do not have a great deal of equity, you can file for Chapter 7 and retain ownership of your property. You can also keep your car if you are not behind on the payments and you have limited equity in the vehicle.
In order to qualify for a Chapter 7 bankruptcy, you have to be able to pass a means test. Though there are exceptions, if your income exceeds the median income in the state of your residence, you cannot qualify for a Chapter 7 liquidation. Under these circumstances, if your debt is unmanageable, you may want to opt for a Chapter 13 reorganization.
When you file for chapter 13, you are allowed to keep all of your property, and you use your disposable income to make monthly payments that you can afford. Also, if you are not current on your home or car payments, you can make up these payments over time through the chapter 13 and retain ownership of your home or car. A chapter 7 will only temporarily delay a creditor from foreclosing or repossession if you are not current.
In addition to these two forms of bankruptcy, there is Chapter 11, which is a reorganization plan for businesses and individuals who have very high levels of debt. Chapter 12 is a reorganization bankruptcy that is available to certain family farmers and fishermen.
If you are a resident of Portland, Grants Pass, Salem, Vancouver or TriCities, we will be more than glad to provide you with a free bankruptcy case evaluation. These sessions are very relaxed, and we make every effort to make our clients completely comfortable every step of the way. You can simply click this link to take the first step, and the professionals here at OlsenDaines will take care of the rest.