Chapter 7 Filings are common for individuals who need full relief from their debt burdens, and are willing to liquidate their existing assets for a chance to start over. A typical chapter 7 bankruptcy requires that a trustee be put in charge of liquidating any non-exempt assets and uses the generated cash to pay off petitioning creditors. This is not the only option, and citizens with income producing assets such as businesses will frequently pursue a differnt course of action which allows them to continue to operate their business and to repay debts under a longer time frame or a reduced debt load.
In order to qualify for chapter 7 filing, an individual must undergo credit counseling from an approved credit counseling agency within the past 180 days of filing. There is no specific amount of debt required to qualify, but an individual petitioner is subject to a means test, to show that they do not have the means to repay the debt otherwise.
In Oregon, an individual wishing to file Chapter 7 bankruptcy must file a petition with their local federal court. In addition, they must file supporting papers including a schedule of assets and liabilities, a schedule of income and expenses, a statement of financial affairs and schedule of contracts and leases. A local oregon attorney can assist you in preparing the appropriate documents. Follow this link to receive a Free Chapter 7 Consultation from a local Portland area lawyer.
This site is for informational purposes only and is not meant to serve as legal advice. Please consult a licensed attorney for help in your bankruptcy process.