State of Oregon Bankruptcy Information
Bankruptcy allows you to reorganize or discharge your debt. Chapter 7 and Chapter 13 give consumers an option when they cannot pay their debts on time any longer. Each state has its own exemptions and guidelines regarding this legal act. In Oregon, for example, more than 30 exemptions allow you to hold onto some of your property.
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Exemptions
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State law determines property exemptions even though Federal laws govern bankruptcy. The exemption specifies which property you will keep even after the debt is discharged. For example, you can keep a vehicle with equity of $2,150 or less. That means if the car's value is $10,000 and you owe $8,000 on the vehicle then the equity equals $2,000 -- less than the maximum allowed for an Oregon exemption. Therefore, you could keep the vehicle. Other Oregon exemptions include $30,000 for homes, $1,800 for clothes and jewelry, and $3,000 for furniture for a single debtor as of April 2010.
Means Test
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Under the 2005 revisions to the federal bankruptcy law, if you want to file for Chapter 7 bankruptcy you must pass a means test to determine if you have sufficient income to pay part of your debts. In Oregon as of September 2009, a family of four must earn less than $72,667 for you to qualify while a single person must earn less than $42,495.
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Fees
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Federal law sets the filing fees for bankruptcy. The costs equal $299 for Chapter 7 and $274 for Chapter 13, as of April 2010. In Oregon, the filing fee can be paid in three installments within an 84-day period. If your income is sufficiently low, the filing fee can be waived entirely.
Legal Representation
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Although Oregon does not require you to have an attorney to file for bankruptcy, having the representation may be useful. A Bankruptcy Clinic sponsored by the Oregon Bar Association and Legal Aid offers assistance to low income people considering filing for bankruptcy. The Oregon Bar Association can also refer you to attorneys who offer free or reduce cost consultations.
Time Issues
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According to Pacific Bankruptcy, Chapter 7 bankruptcies typically take 3 to 4 months to complete starting at the time of filing until the time of debt discharge. Chapter 13 bankruptcy can last between 36 and 60 months. Bankruptcies stay on your credit report for up to 10 years after the debt has been discharged.
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References
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