Bankruptcy

CHAPTER 7 BK

Chapter 7 bankruptcy stops garnishments and all other collection efforts as soon as the case is filed.  You get a break from debt collectors and a chance to begin a fresh financial start.  We can help you get there.

General Info

Chapter 7 bankruptcy is the liquidation bankruptcy filing. In most cases you can keep all your property and all of your eligible debts are erased (discharged). For most persons filing chapter 7, all their property is exempt. This means that you can keep your property. You will gather your debt information and take a pre-filing credit counseling session, and we will take care of almost everything else. Chapter 7 is normally over in around four months and typically only requires one very short court appearance.

If you are ready for your fresh start, contact Don to schedule your consultation today.

Typical types of debt and how they are handled in Chapter 7:

  • Tax debt – not dischargeable, but collection efforts typically stop during bankruptcy.
  • Student loans – not generally dischargeable without a showing of undue hardship (extremely hard to prove for most debtors).
  • Unsecured debt (credit cards, etc.) – generally fully dischargeable.
  • Stop garnishments – as soon as you have a case number, collection efforts of every type must stop.
  • Protect your retirement account – your retirement account is fully protected.
  • Protect your property – most chapter 7 debtors’ property is fully protected in bankruptcy proceedings.  Occasionally, however, a family with many extras (ATVs, extra cars, etc) may be expected to sell something. We can determine this for you before you file.

For Homeowners:

Resources may be available if you are in danger of losing your home because you are behind in mortgage payments. Government agencies that provide information and assistance include the Department of Housing and Urban Development (Find a Housing Counselor and Avoiding Foreclosure) and the Federal Trade Commission (Facts for Consumers).

In addition, you may be eligible to modify your mortgage to make your monthly payments more affordable through the Home Affordable Modification Program (HAMP), even if you have filed for bankruptcy relief. For more information on HAMP, please review the HAMP Fact Sheet in English and the HAMP FAQs in English, or visit www.makinghomeaffordable.gov.

Oregon Bankruptcy Court’s website: http://www.orb.uscourts.gov/
Court fee information: http://www.orb.uscourts.gov/court-fees

General process:

  1. Gather your debts – pull credit reports (annualcreditreport.com provides free reports from all 3 bureaus once each year), judgments in courts, all regular bills
  2. Fill out an intake sheet at our office
  3. Complete a pre-filing credit counseling course (select one from this page)
  4. Attend the Meeting of Creditors with your attorney (341 hearing)
  5. Complete the post-filing debt management counseling (select one from this page)
  6. Discharge (begin your new financial life!)

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