Bankrupt individuals who are struggling financially aspire to pay off all types of debt to have a fresh start. Everyone wants to experience financial freedom and have a debt-free life. If you are unable to pay back your outstanding debts to creditors, you have the option to file bankruptcy as the last resort to solve debt problems. The bankruptcy filing allows you to pursue debt settlement and restructure your finances. It is a legal process that is designed to help a debtor eliminate a part or all of the total amount that they owe to their creditor.

There are different types of bankruptcy that you can choose from depending on your financial status. The most common types are Chapter 7 and Chapter 13 bankruptcy. You have to select the most appropriate bankruptcy chapter that will result in total debt repayment.

Bankruptcy rules differ from state to state. In Oregon, there are certain criteria that you need to meet before you can file for bankruptcy. Here are some of the requirements that you must prepare for the bankruptcy filing process:

  1. Bankruptcy Forms
  2. Credit Counseling and Debt Management Course
  3. Bankruptcy Exemptions
  4. Means Test
  5. Median Income in Oregon
  6. Standard Deduction Figures
  7. Oregon Bankruptcy Court

Bankruptcy Forms

Bankruptcy Filing in Oregon You may begin your bankruptcy filing by accomplishing the official online bankruptcy forms. You need to fill out the form with the complete details of your current financial situation. You need to declare all your assets, liabilities, monthly income, living expenses, bank account information, credit card debt, loan debt, and property transactions. You need to ensure that all information and figures in your paperwork are accurate before you submit it to the local bankruptcy court. A competent Oregon bankruptcy attorney can assist you in such filing.

Some bankruptcy courts require bankruptcy filers to accomplish additional “local forms.” You may contact the bankruptcy filing clerk to check if your court needs additional requirements and information. Some courts post these forms online on the court’s website.

Credit Counseling and Debt Management Course

Before qualifying for any bankruptcy chapter, you are required to complete credit counseling sessions from accredited credit counseling agencies within the grace period of 180 days before filing for bankruptcy. Furthermore, it is mandatory to take a debt management education course after bankruptcy or before receiving your bankruptcy discharge.

Bankruptcy Exemptions

The rules on bankruptcy exemptions vary from each state. These rules can help you determine the amount and type of property you are allowed to keep when you declare bankruptcy in Oregon. These exemptions play an important role in calculating the amount that you will repay to unsecured creditors under bankruptcy Chapter 13.

Means Test

When you file bankruptcy Chapter 7, you must pass the “means test”. In this test, your monthly income will be compared to the average or median income of typical household size in Oregon. If your monthly income is lower than the state’s median income, then you are qualified to file Chapter 7 bankruptcy.

On the other hand, if the income of your family is greater than the median income, you may still be qualified to pass the means test after you deduct the allowable living expenses. If you file Chapter 13 bankruptcy, you have the option to select a repayment plan for three years instead of five.

Median Income in Oregon

In Oregon, the single-person household median income is $42,877, while for a two-person household, the median income is $52,316. The value increases based on the size of your family and it must be updated regularly. It is advisable to consult a competent Oregon bankruptcy lawyer to know about the latest figures and requirements.

Standard Deduction Figures

Forms 22A and 22C specify the categories of allowable living expenses which include rent or mortgage (housing), healthcare, and food. Some categories like child care or child support, require you to make a list and subtract the exact amount that you need for spending. In other categories, you set a prearranged amount that will be used as a national standard based on your county of residency.

Oregon Bankruptcy Court

The bankruptcy courts in Oregon are located in Portland and Eugene. You can file your complete bankruptcy paperwork in the present location where you live for the past 180 days or the location where you were domiciled.

The Role of Bankruptcy Attorney

Filing for bankruptcy requires a lot of hard work and effort. It is a step-by-step process that will help you solve your financial problems. You need to focus on debt repayment and reorganization of your finances. It is crucial to understand the bankruptcy laws implemented in your state to avoid unnecessary errors and penalties in your bankruptcy filings. You have to ensure that all the personal and financial information is accurately declared. For legal help in your bankruptcy filing, do not hesitate to schedule a consultation with an experienced Oregon bankruptcy attorney at Northwest Debt Relief Law Firm. Our lawyers will guide you throughout the whole bankruptcy process from the beginning until the end.

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