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Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common form of individual bankruptcy filing in Oregon.  A Debtor puts all their assets into the bankruptcy, with any non-exempt assets being sold by your Trustee to pay the Debtor's debts.  Upon the successful conclusion of the bankruptcy, whether money was paid towards them or not, the Debtor's debts are all fully discharged provided they are the type of debt that is eligible to be discharged.

To file a Chapter 7 bankruptcy a Debtor must submit a petition with the United States Bankruptcy Court of Oregon.  This petition will list all of that person's debts and all of their assets.  Different types of debts are treated differently in a Chapter 7 bankruptcy and some do not get "discharged" at the end of a successful filing.  This means a Debtor can file bankruptcy and still owe debt afterwards.  It is important to consult an attorney to determine how your debts will be treated in bankruptcy.  The assets of the Debtor are protected by exemptions.  Exemptions are a certain dollar amount for particular assets that the Debtor is allowed to keep despite filing bankruptcy.  In Oregon we now have a choice between using our State Exemptions or the Federal Exemptions as long as the Debtor has lived in Oregon for the last three years.  Hopefully all of the Debtor's assets are protected and their debt is dischargeable. 

Since certain debts are not forgiven in a bankruptcy and some assets can't be protected, we will discuss these at your free consultation.  

At the conclusion of a Chapter 7 bankruptcy case, usually less than 120 days after filing, the Debtor receives their discharge and the process is complete.  However, if the Debtor is considered to be an asset case, the Trustee takes control and liquidates one or more of the Debtor's assets, than the case will remain open to administer those assets.

Chapter 7 Bankruptcy can...

  • Stop Garnishment

  • Protect your Assets

  • Help you get away from Bad Debt

  • Give you a fresh start

Chapter 13 Bankruptcy

 

Chapter 13 bankruptcy requires a Debtor to reach an agreement with the Court to pay a certain amount of money back to Creditors over a 36-60 month period.   The amount is paid to a Trustee and is usually split over the plan period in equal installments.

A Debtor chooses this type of bankruptcy either because it's their only option or it gives them an advantage.  Chapter 13 bankruptcy may be the only option if you have filed Chapter 7 bankruptcy within the last eight years or you earn too much money to be eligible to file a Chapter 7 bankruptcy.  There are certain advantages available within a Chapter 13 bankruptcy that do not  exist in a Chapter 7 bankruptcy.  These include the ability to protect some assets that would be lost in a Chapter 7 bankruptcy, control the repayment terms of certain secured debt, and get rid of some debts that aren't dischargeable in a Chapter 7 bankruptcy.

A Chapter 13 bankruptcy requires more planning and commitment than a Chapter 7 bankruptcy.  However, the benefits of a Chapter 13 bankruptcy can make it worth the work.  Whether you are looking to cram down a vehicle, strip a second mortgage, or just control your debt repayment please come in and talk to us about your options.

Chapter 13 Bankruptcy can...

  • Stop Garnishment

  • Save your home from foreclosure

  • Save your license from suspension

  • Allow you to buy property for what its worth and not what you owe

  • Pay back tax debt

  • Help you get away from Bad Debt

  • Give you a fresh start

Violation of the Automatic Stay

 

When a person files for bankruptcy they become protected by the "Automatic Stay" which is found in 11 U.S.C. § 362.  This protection means that Creditors are not allowed to attempt to collect this debt  from the Debtor while they are in bankruptcy.  There is an exception if the Creditor has been given special permission by the Court to collect the debt.  Creditors are informed of this rule as part of the notice that they receive from the Court when a person files for bankruptcy.  If the Creditors break this rule than they can be liable for damages to the Debtor for the harm it causes.

At Bishop Bankruptcy Law we protect our clients from start to finish.  Even if you didn't file bankruptcy with us, feel free to give us a call if you are being harassed during or after bankruptcy.  We are here to help. 

 

Violation of the Discharge Injunction

 

After a person successfully completes their bankruptcy, they become protected from future collection of discharged debt by the "Discharge Injunction" which is found in 11 U.S.C. § 524.  This means that Creditors are not allowed to collect this debt from the Debtor ever again.  Creditors are informed of this rule as part of the notice that they receive from the Court when a person is successfully discharged from bankruptcy.  If a Creditor breaks this rule then they can be liable for damages to the Debtor for the harm that it causes.

At Bishop Bankruptcy Law we protect our clients even after their bankruptcy is over.  If you are continuing to be harassed over debts that were included in your bankruptcy, even if you didn't file bankruptcy with us, please give us a call.  We are here to help. 

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