Best Bankruptcy Lawyers in Oregon

About Bankruptcy Law in Oregon, United States

Bankruptcy is a legal process that offers individuals and businesses the opportunity to eliminate or restructure their debts when they are unable to pay them. In Oregon, bankruptcy is primarily governed by federal law, specifically the United States Bankruptcy Code. However, Oregon has specific local rules and guidelines that supplement federal statutes. The main goal of bankruptcy in Oregon is to provide honest debtors with a fresh start while ensuring that creditors receive fair treatment.

Why You May Need a Lawyer

Filing for bankruptcy can be a complicated and emotionally taxing process. There are several situations in Oregon where seeking legal help is highly recommended:

• If you are overwhelmed by credit card debt, medical bills, or personal loans
• If your wages are being garnished or you are facing foreclosure
• If you are unsure which bankruptcy chapter applies best to your situation
• If you want to protect certain assets, such as your home or car
• If you own a small business facing financial difficulties
• If creditors are harassing you or threatening lawsuits
• If you want to understand the long-term consequences of filing for bankruptcy

A qualified Oregon bankruptcy attorney can help you navigate the complex legal process, explain your options, and increase your odds of a successful filing.

Local Laws Overview

While bankruptcy is governed by federal law, Oregon has specific local rules and exemptions that are important to understand:

• Oregon Exemptions: Oregon residents may use Oregon’s state exemptions or, in some cases, federal exemptions to protect certain property from being liquidated in bankruptcy. Common exemptions include a portion of equity in your home (homestead exemption), vehicles, personal property, tools of the trade, and more.
• Filing Requirements: Bankruptcy cases in Oregon are handled by the United States Bankruptcy Court for the District of Oregon. The state has two courthouse locations - in Portland and Eugene.
• Types of Bankruptcy: The most common types are Chapter 7 (liquidation) and Chapter 13 (reorganization). Chapter 7 is typically for individuals with limited assets, while Chapter 13 allows you to catch up on missed payments through a repayment plan.
• Means Test: Oregon debtors must pass a means test to qualify for Chapter 7, which compares your income against the state median.
• Mandatory Credit Counseling: Before filing, you must complete a credit counseling course from an approved provider.

Local law can impact what property you keep, how your debts are treated, and the overall bankruptcy process. Consulting with an attorney familiar with Oregon’s unique practices is always advisable.

Frequently Asked Questions

What types of bankruptcy can I file in Oregon?

The two most common types are Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is best for those with little income and few assets, seeking to eliminate most debts. Chapter 13 is for those who wish to keep certain assets and pay back debts over time.

What do I need to qualify for bankruptcy in Oregon?

Eligibility depends on your income, assets, debts, and recent financial activity. For Chapter 7, you must pass the means test. Chapter 13 requires a regular income and total debts under certain limits specified by federal law.

Will bankruptcy stop foreclosure or repossession?

Yes, filing for bankruptcy triggers an automatic stay, which temporarily halts most collection actions, including foreclosure and vehicle repossession. Depending on the type of bankruptcy, you may be able to keep your home or car.

Can I keep any property if I file for bankruptcy?

Oregon law provides exemptions that allow you to keep certain property, such as a portion of your home equity, vehicle, personal belongings, and retirement accounts. The exact amount depends on your circumstances and whether you use state or federal exemptions.

How does bankruptcy affect my credit score?

Bankruptcy will impact your credit score. Chapter 7 may remain on your report for up to 10 years, while Chapter 13 typically stays for 7 years. However, many people are able to start rebuilding credit soon after discharge.

How long does bankruptcy take in Oregon?

A typical Chapter 7 case can be completed in about 3 to 6 months. Chapter 13 involves a repayment plan that lasts 3 to 5 years.

What debts can be discharged in bankruptcy?

Most unsecured debts, such as credit card balances, medical bills, and personal loans, can be discharged. Certain debts, like child support, alimony, most student loans, and some taxes, are generally not dischargeable.

Do I have to appear in court?

You will most likely need to attend a meeting of creditors, also called a 341 meeting, but you typically do not have to appear before a judge unless there are disputes or complications.

Can bankruptcy help with medical debt?

Yes, medical debt is considered an unsecured debt and is often dischargeable through bankruptcy.

How do I choose between Oregon and federal exemptions?

Oregon generally requires residents to use the state’s exemption system, but certain circumstances may allow the use of federal exemptions. Consulting with a bankruptcy attorney can help determine which set best protects your property.

Additional Resources

If you are seeking guidance or additional support regarding bankruptcy in Oregon, consider contacting the following:

• United States Bankruptcy Court - District of Oregon: Provides official forms, filing information, court locations, and public resources.
• Oregon State Bar Lawyer Referral Service: Connects you with licensed bankruptcy attorneys in your area.
• Legal Aid Services of Oregon: Offers free or low-cost legal assistance to eligible individuals.
• Consumer Credit Counseling Agencies: Can help you understand your options before you file.
• Oregon Department of Justice: Offers resources and guidance about debt collection and consumer rights.

Next Steps

If you are considering bankruptcy in Oregon:

1. Gather information about your finances, debts, assets, and income.
2. Consider scheduling an appointment with a qualified bankruptcy attorney to discuss your options and whether bankruptcy is right for you.
3. Review credit counseling requirements, as you must complete a course from an approved provider prior to filing.
4. If eligible for legal aid, reach out to organizations for support and guidance.
5. Once you decide to proceed, your attorney will help you prepare and file the appropriate paperwork with the United States Bankruptcy Court for the District of Oregon.

Remember, bankruptcy is a significant decision that can offer relief and a path forward when done correctly. Consulting with experienced professionals can make a positive difference as you navigate this process.