Oregon Bankruptcy Rules
If managing your debt has become overwhelming or even impossible, bankruptcy may be your only alternative. Residents of Oregon may seek consumer bankruptcy protection by filing Chapter 7 or Chapter 13. Chapter 7, or liquidation bankruptcy, eliminates your debt while Chapter 13 bankruptcy allows you to repay what you owe over time. Before filing bankruptcy in Oregon, it's important to understand what the process involves.
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Chapter 7 Means Test
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Eligibility to file Chapter 7 in Oregon is determined by the means test. The means test is a comparison of your previous six months' income against the median income for your family size. Median family income limits are established by the U.S. Census Bureau. As of 2010, a single filer in Oregon is allowed a maximum median income of $42,344. The limit increases to $72,408 for a family of four. If your income is greater than the allowed limit, you will have to file Chapter 13 instead.
Chapter 13 Eligibility
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To file Chapter 13 bankruptcy in Oregon, you must be able to show the court that you have a regular source of income. In addition, you must also be able to demonstrate that your income is sufficient to allow you to make regular payments on your debt each month. Your total debt cannot exceed certain limits. As of 2010, the federal government allows you to claim a maximum of $360,475 in unsecured debt and $1,081,400 in secured debt in a Chapter 13 bankruptcy.
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Filing Requirements
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Before you can submit your bankruptcy petition, you must complete court-approved credit counseling. All bankruptcy petitions must be filed with the district bankruptcy court, either in the Eugene or Portland office. When you file, you must pay all the required fees. In 2010, a Chapter 7 case costs $299 to file. A Chapter 13 petition costs $274. You must provide the court with a creditor matrix, a list of your debts and assets, proof of income, tax records and a statement of financial affairs.
Chapter 7 Exemptions
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In Chapter 7 bankruptcy, you agree to forfeit some of your assets to the court. Oregon state law does allow you to claim some of your property as exempt. In 2010, this included up to $30,000 in home equity value; a motor vehicle up to $2,150; clothing and personal items up to $1,800; electronics and household goods up to $3,000; bank deposits up to $7,500; and tools of the trade up to $3,000.
Chapter 13 Repayment
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If you file Chapter 13, you agree to repay your debts over a three or five year period, depending on your income. Oregon state law requires that you repay alimony, child support and tax debts first and in full. If you want to keep your home or vehicle, you must also repay these secured debts in full. Unsecured debts, including medical bills and credit card debts are considered low priority. You cannot receive a discharge until you complete your repayment plan.
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References
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