Major life events, such as a medical emergency or job loss, can sideline you from paying bills and put you in a difficult financial situation. When you're overwhelmed with a huge burden of debt, filing for bankruptcy is an option you can pursue to achieve debt relief and find the financial fresh start you deserve. If you're considering filing for bankruptcy, consulting with an experienced Oregon bankruptcy attorney is crucial for detailed guidance.
At Oregon Fresh Start, I am dedicated to offering comprehensive legal guidance and strong advocacy to clients in bankruptcy-related matters. I'm available to discuss your unique financial condition, explore your possible bankruptcy options, and determine what bankruptcy chapter is right for you. Using my 42 years of extensive experience, I can guide you through complicated bankruptcy proceedings and help you navigate important decisions.
My firm – Oregon Fresh Start – proudly serves clients across Bend and Hermiston, Oregon, and the surrounding areas of Portland and Eugene.
Bankruptcy is a tool designed to help individuals and business owners who are overwhelmed with debt receive immediate financial relief. If you're going through financial adversity, filing for bankruptcy may be one of the possible ways to remedy your condition and get the financial clean slate you need.
The most common bankruptcy options available for individuals and business owners in Oregon include Chapter 7, Chapter 13, and Chapter 11.
Chapter 7 bankruptcy, or liquidation bankruptcy, is designed to help you eliminate most of your general unsecured debts. When you file for Chapter 7, the court will appoint a trustee to oversee your bankruptcy case. In almost all cases, you will get to keep all of your property.
Chapter 11 bankruptcy, or reorganization bankruptcy, is designed to help businesses restructure their affairs, operations, assets, and debts. This bankruptcy option gives the company sufficient time to reorganize their business and gradually repay their debts while keeping the business afloat. Creditors will be classified into priority debt creditors, unsecured debt creditors, and secured debt creditors. Both the creditor and the court must approve the proposed reorganization plan.
Chapter 13 bankruptcy, or wage earner's bankruptcy, is available to individuals who earn a regular income but are overwhelmed with debt. This bankruptcy chapter allows the debtor to pay back their debts through a structured repayment plan over three to five years. Chapter 13 allows you to keep hold of your assets, including your cars, home, and other belongings. Some of your unsecured debt may be discharged at the end of the Chapter 13 repayment plan.
If you're considering filing for bankruptcy here in Oregon, it is important that you understand the option that is right for your unique situation. Note the following:
Who Can File?
Filing for Chapter 7 requires passing the bankruptcy means test. Conversely, Chapter 11 is available to large businesses and corporations that need time to reorganize their affairs, while Chapter 13 is available for regular income earners who are burdened with debt.
Is a Payment Plan Required?
Chapter 11 and Chapter 13 require proposing a debt repayment plan to settle your creditors. In contrast, no repayment plan is required in a Chapter 7 case.
What Happens to Your Debts?
Filing for Chapter 7 eliminates most of your general unsecured debts. In contrast, filing for Chapter 13 will require you to repay some of your creditors. Chapter 11 is a reorganization plan for businesses.
Who Oversees Your Bankruptcy Case?
A court-appointed trustee will oversee your Chapter 7 or Chapter 13 case. This is optional in a Chapter 11 case.
What Happens to Your Assets?
Under Chapter 11 and Chapter 13, none of your assets will be sold.
What’s the Impact on Your Credit Score?
Filing for any bankruptcy chapter will lower your credit score temporarily. However, you can recover financially and improve your credit score gradually by maintaining good financial habits.
Bankruptcy is quite common in Oregon, and it isn't anything to be ashamed of. According to the American Bankruptcy Institute’s Bankruptcy Filing Trends in Oregon, there were 6,636 total business and non‐business bankruptcy filings in the state in 2020. These consumers didn't go through the process alone, and neither should you. If you're thinking about filing for bankruptcy, you need to speak with an experienced bankruptcy attorney to evaluate your available options and provide detailed guidance.
For more than 40 years, I have devoted my career to offering outstanding legal services and guiding clients through the complexities involved in bankruptcy proceedings. As your legal counsel, I can evaluate your financial condition, enlighten you about your possible bankruptcy options, and decide the right bankruptcy chapter for you. I can outline an effective solution to protect your assets, avoid potential pitfalls, and help you make informed financial decisions.
If you need proper guidance filing for bankruptcy, contact my firm – Oregon Fresh Start – today to schedule a one-on-one consultation. I can offer you the experienced legal counsel, support, and brilliant advocacy you need to navigate important decisions in your bankruptcy case. My firm is proud to serve clients across Bend, Hermiston, Portland, and Eugene, Oregon.