Wipe Out Debt with Chapter 7 Bankruptcy Oregon and Washington

Going bankrupt comes with a social stigma, so it’s often the last resort that debtors turn to in their efforts to solve their financial problems. Bankruptcies may signify a low point in people’s lives, but they do offer debt relief and a fresh start.

There are different types of bankruptcy provided in the bankruptcy law. Personal bankruptcy is often filed under Chapter 7 or Chapter 13. These chapters usually involve consumer bankruptcy. Bankruptcy Chapter 7 of the United States bankruptcy code is called a “liquidation” bankruptcy, while Chapter 13 is referred to as “reorganization” bankruptcy.

Chapter 7 bankruptcy is a popular choice since it is a shorter process designed to help people who are unable to pay their existing debts. The purpose of filing a Chapter 7 bankruptcy case is to get out of debt by getting rid of all dischargeable debts.

Types of Debt Wiped out by the Chapter 7 Bankruptcy Process in Oregon and Washington:

  • Credit card debt
  • Personal loans
  • Certain tax debt
  • Parking tickets
  • Store card debt
  • Checking account overdrafts
  • Dental and medical bills
  • Social Security and unemployment over payments

Exempt Property

In Oregon, a Chapter 7 bankruptcy trustee takes possession of your personal property that is not considered “exempt.” Common property types that you can keep when you file for bankruptcy under Chapter 7 in Oregon:

  • Bank accounts with a total value of up to $400
  • Clothing and jewelry with a value of up to $3,600
  • Homes with total equity of up to $33,000
  • Automobiles with total equity of up to $3,400
  • Household furniture with a value of up to $3, 000
  • Retirement accounts from a current or previous employer

Non-Exempt Property

In a Chapter 7 bankruptcy petition in Washington, the bankruptcy court allows a trustee in bankruptcy to take possession of property not included in the list of “exemptions.” Certain assets that you can keep in Washington when you file bankruptcy under Chapter 7 include:

  • Personal Property of any kind with a value of up to $2000 or, if the debtor does not own a home, up to a value of $9,000
  • Household furniture with a value of up to $2,700
  • Retirement accounts from a current or previous employer
  • Automobiles with total equity of up to $2,500 or $5,000 for married couples
  • Jewelry with a value of up to $1,000
  • Homes with total equity of up to $40,000

Debt Not Included in a Bankruptcy Discharge

Unfortunately, certain debts cannot be wiped out in Chapter 7 bankruptcy cases. Debts that are not wiped out in bankruptcy under Chapter 7 include:

  • Most taxes
  • Debts obtained through fraud or deception
  • Most student loan debts
  • Child support and alimony
  • United States bankruptcy court-ordered fines and criminal restitution
  • Debts for personal injuries caused by driving while intoxicated

Need Help with Bankruptcy Filings in Oregon or Washington? Contact a Bankruptcy Attorney Today!

If you’re in financial distress and want bankruptcy protection, consult a bankruptcy lawyer right away. Bankruptcy lawyers can explain the relevant points of the bankruptcy act to you and guide you on how to file a petition for bankruptcy as well as navigate the rest of bankruptcy proceedings with you. For legal advice and assistance on your bankruptcy options, call us now at Northwest Debt Relief Law Firm and speak with one of our experienced bankruptcy attorneys.