Oregon Bankruptcy:
Non-Dischargeable Debts

Can I Discharge Every Debt if I Claim Oregon Bankruptcy?

No. If you claim Oregon bankruptcy, there are some debts that cannot be discharged under any circumstances. According to Oregon bankruptcy laws, some non-dischareable debts are child support, alimony, any debt owed as a result of drunk driving, and criminal restitution.

You cannot use Oregon bankruptcy to discharge a debt where fraud was present or where there was a willful or malicious injury. An example of fraud would be where you gave false information on a credit application and the creditor granted you a loan based upon the false information. Oregon bankruptcy law classifies that debt as non-dischareable. Another example would be where you made a large purchase or obtained a large cash advance on a credit card knowing that you were having financial problems and would have difficulty repaying the debt. An Oregon bankruptcy will not discharge that debt. Generally, you cannot use an Oregon bankruptcy to discharge old taxes unless it has been more than three years since you filed your tax return for that year. Student loans present particular problems because Oregon bankruptcy laws have tightened considerably over the past several years. To discharge a student loan through Oregon bankruptcy, you are required to sue the government and prove, among other things, that if you were required to repay the loan, it would create an "undue hardship" for you. Lawsuits against the government are very expensive so you should probably approach filing Oregon bankruptcy knowing that you will end up having to repay the student loan. The government now has programs that will allow you to repay the loan over as many as 30 years. The result is low payments over a long period of time.

In a Chapter 13 Oregon bankruptcy filing, you can discharge tax debts at the end of the 3-5 year period even if you did not file a tax return

The rules regarding the elimination of debts in Oregon bankruptcy are complicated. You should consult with an expert from OREGON FRESH START before filing for Oregon bankruptcy.

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