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Oregon Bankruptcy Laws



Oregon Bankruptcy Laws should be known by every resident of the state of Oregon. Over the past decade, the state of Oregon reached the second spot in terms of unemployment cases. In relation to this, the incidence of bankruptcy application has also increased noticeably. While it may be the federal government’s aim to provide safety nets for citizens of the country in times like these, it does not promote bankruptcy declaration. The same holds true for Oregon bankruptcy laws since the state follows federal rules with some minor exceptions where state-specific laws and regulations apply.

Knowledge is power. This is true and every debtor considering bankruptcy protection should know all there is to know about the complex Oregon laws regarding bankruptcy declaration. Another important aspect that should be studied carefully is the eligibility for bankruptcy. Since the Bankruptcy Abuse Prevention and Consumer Protection Act was imposed in 2005 the complex criteria for bankruptcy application have become more complex. Tons of paperwork are also needed for filing bankruptcy from financial statements to a credit matrix. Even more vital is the necessity of a lawyer’s services to help you go through the process successfully.

Have you decided on the bankruptcy protection program you are applying for? Will it be Chapter 7 or 13? The first criteria for a debtor to pass the screening for the Chapter 7 bankruptcy program is a monthly income less than the median income level of the state of Oregon. Based on the financial statements presented during application, if this can be proved by the trustee, then you qualify for the said program. If your income is more than the median income level, there is still another chance to qualify for Chapter 7. The debtor’s expenses and monthly obligations should be deducted from the monthly income, and if the debtor’s dispensable cash does not reach a minimum of $100 per month to pay the creditors.

If you fail to qualify for any of the abovementioned criteria, the only bankruptcy option left is Chapter 13. This program is also called as debt reorganization because the debtor is given the chance to pay his debts through a repayment program. The court’s approval is needed before the implementation of the plan and it will run for 3 to 5 years until all of your debts are paid. For a debtor to qualify in this program, he must have a regular monthly income.

The primary advantage of this bankruptcy protection program is you won’t have to put up your assets to pay the debts you owe. An automatic stay will be issued by the bankruptcy courts to the creditors to prevent them from harassing the debtors while enrolled in the repayment program.

Oregon bankruptcy laws have provided provisions for assets or properties shielded from the creditors. Although there are federal exemptions, the state gives you the option to choose between the better exemptions of the two. Here’s a partial list of the exemptions:

• A home worth $30,000 or the same amount from the proceeds of your home;
• A mobile home with lot worth $23,000 in lieu of the homestead exemption;
• Personal items, clothing, and jewelry worth $1,800;
• A vehicle worth $2,150; and
• Other personal property and benefits.

The exact list of the state’s exemptions will encompass this page. It is best you seek your lawyer’s help to explain all these details to you.