Bankruptcy Process in Oregon
The United States Bankruptcy Code allows individuals and businesses that are unable to repay their debts to seek protection from their creditors. The most common types of bankruptcy include Chapter 7, which eliminates your debts completely, and Chapter 13, which allows you to repay your debts over time. Each state, including Oregon, has different rules regarding who can file bankruptcy and what assets you may be allowed to claim as exempt.
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Pre-Filing
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There are several steps that are required before you can file for bankruptcy in Oregon. At least 180 days prior to submitting your petition, you must complete a certified credit counseling program. You must also pass a means test to determine whether you are eligible to file for Chapter 7. In Oregon, you pass the means test if your median income is no more than $42,495 (as of November 2009) if you are single. The median income limit increases with family size. If your income exceeds the median, you have to file Chapter 13 instead.
Filing
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The District of Oregon has offices in Eugene and Portland, and you must file your petition in the location that is nearest to you. At the time of filing, you must pay a $299 filing fee for a Chapter 7 petition or $274 for a Chapter 13 case. You are also required to submit a copy of your credit counseling certification, a list of all debts and assets and a statement of financial affairs if you're filing Chapter 13. Filing costs are as of 2010.
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Exemptions
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In Oregon, you are allowed to claim certain assets as exempt from liquidation. According to Oregon Fresh Start, a single debtor in 2010 can claim a homestead exemption of up to $30,000 while joint debtors are allowed up to $39,600. You can also exempt up to $2,150 of your vehicle's value, $3,000 in home furnishings, $1,800 in clothing and jewelry, 100 percent of retirement assets and $3,000 in tools used for work.
Meeting of Creditors
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A meeting of creditors typically occurs 20 to 50 days after you file your initial petition. A trustee, who is responsible for overseeing your case from the time you file until discharge, directs the meeting, and your attendance is required. Your creditors are invited to attend, although they typically do not. At this meeting, the trustee will go over the details of your case to ensure that there have been no significant changes to your financial situation.
Discharge
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The time frame for your bankruptcy discharge depends on the type of petition you filed. In a Chapter 7 bankruptcy, your case is typically discharged within 90 days of the initial filing or approximately four to six weeks after the meeting of creditors. In a Chapter 13 bankruptcy, your case is not discharged until all of your debts are satisfied according to your repayment plan. In Oregon, you can also plead for a hardship discharge if you are unable to afford your plan payments.
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References
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