Bankruptcy Puts a Stop to:

Harassment: A bankruptcy filing requires that the creditor immediately cease collection efforts.

Garnishments: Once your case is filed, most creditors are no longer entitled to garnish your wages.

Foreclosures: Under federal bankruptcy law, foreclosure efforts cease immediately upon filing.

Internal Revenue Service: A bankruptcy filing immediately stops the IRS, some taxes can be discharged in bankruptcy.

Oregon Bankruptcy Laws

Individual states have differences in their bankruptcy laws. In Oregon, a debt incurred by one spouse alone during the course of the marriage generally does not become a debt of the other spouse. In Washington, because of community property laws, a debt incurred by either spouse during the course of the marriage is generally considered a debt of both spouses.

Please contact us and we can answer questions about your situation.

Chapter 7 Bankruptcy

Chapter 7, also known as “liquidation bankruptcy”, is the most common type of bankruptcy. While there are certain exceptions, in this scenario, the debtor is relieved of personal liability for all debts.

Not all debts are discharged by a Chapter 7 bankruptcy. The most common being child support, criminal restitution, student loans, spousal support and fines. Depending on the circumstances, other debts may or may not be discharged.

Chapter 13 Bankruptcy

Chapter 13 bankruptcies let the individual or business combine debts and allows for repayment of all or part of the debt. This bankruptcy also gives protection to the debtor and any co-signers from harassment by creditors.

There are several qualifications you must meet in order to qualify for Chapter 13 bankruptcy. You must be an individual, husband or wife, or a sole proprietor of a business and you must have a regular income. Five years is the maximum length of a Chapter 13 plan.