Bankruptcy is a legal process that relieves some or all debts an individual or business carries. Attorney Ted Troutman can help you understand the various criteria that must be met to file for bankruptcy and the requirements before, during, and after filing. Our firm can help to alleviate the stress you and your family are experiencing, and can ensure a smooth transition to a fresh financial start. If you are wondering if you should file for bankruptcy, contact our Portland, OR, practice today to schedule a consultation.
Types of Bankruptcy
There are two types of bankruptcy: liquidation and reorganization. Liquidation means that some or all of your property can be liquidated to settle your debts. Certain property is exempt from liquidation in the state of Oregon, including personal and household items, and some secured debts such as a car loan (provided you are current on payments). Reorganization allows you to keep all your property while your debts are reorganized into more affordable monthly payments over three to five years. There are various liquidation and reorganization options available:
Chapter 13: A popular reorganization option for consumers and businesses with reliable income to pay back debts. You must propose a repayment plan. The amount of debt that must be repaid is dependent on your income, your debts, and how much creditors might have received if you had filed for Chapter 7.
Chapter 11: A much more complex reorganization option, usually used by businesses, although it is also available to consumers. This option is used by those whose debts exceed the Chapter 13 limits, or by those who own multiple non-exempt assets, such as real estate.
Chapter 12: Essentially the same as Chapter 13, but Chapter 12 is reserved for those whose debts are associated with of a family farm or fishery.
We will help you understand the various criteria that must be met to file for bankruptcy, and the requirements before, during, and after filing.
Is Bankruptcy Right for You?
Although bankruptcy is a good debt relief solution for some, it is not right for everyone. It is best suited to those who have a large amount of debt and bills and have fallen behind on payments, including credit card debt, medical bills, and mortgage payments. Filing bankruptcy creates a “stay” that halts all credit collection, including wage garnishment and foreclosure. Bankruptcy cannot reduce or eliminate tax or student loan debt. If you are struggling with these debts, you may find relief through negotiation. It is important to remember that bankruptcy stays on your credit report for 10 years. Most companies will not provide loans to those who have filed bankruptcy, while others will do so but with severely inflated interest rates.
Working with an Experienced Bankruptcy Attorney
During your free consultation with Ted Troutman, he will review and discuss your income, debts, and other expenses to determine if bankruptcy is the best course of action. He can also answer any questions you may have regarding the process. He will provide you with a packet of information and a list of documents that he will need in order to file your paperwork. Pay stubs are required to determine which option you qualify for under Oregon law. You are required to undergo credit counseling before the paperwork is filed, and after filing, you must take a debtors education test.
Contact Troutman Law Firm today to schedule your free consultation and discuss the bankruptcy options available to you. We will review your case to recommend the option that best serves your interests.
For any questions, inquiries, or to set up a consultation with us, please fill out the form below.
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