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How to File for Bankruptcy in Oregon
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Our current economy is making it harder for many people to handle their financial situations and it is leading more people to file for bankruptcy. In Oregon, the percentage of people filing for bankruptcy is 4.75 per capita (per 1,000 people), which makes Oregon about midrange compared to other states and their per capita ratios. Filing bankruptcy allows for a clean slate, but how do you know if your financial situation fits under the “means” test for eligibility and if bankruptcy is the best option for you?
Finding a Bankruptcy Attorney
Seeking legal and financial advice is crucial if you are looking into filing for bankruptcy. A knowledgeable attorney can fill both of those requirements and give you the sound advice you need to move forward. The attorney will be able to assist you in deciding which type of bankruptcy will be most beneficial to you and what exemptions you are entitled to receive. Because the attorney you choose will be representing your case before the bankruptcy trustee and possibly the judge, it is very important that he/she have a good record of cases.
Bankruptcy Options
There are two main options for filing bankruptcy that should be considered:
- Chapter 7 is probably the best choice for those with few to no assets. Most all property will be liquidated in this case and you will get a new start financially.
- Chapter 13 is more suited to for those who have more valuable assets that you would like to retain. It establishes a pay off system for existing debts so that they will be satisfied within three to five years.
Oregon Exemptions
Since over 75% of people filing bankruptcy in Oregon use Chapter 7 of the bankruptcy code, it is essential that you understand the exemptions available for your use. Oregon does not allow for federal exemptions; however, the state exemption laws are relatively generous:
| Homestead | Real property you own up to $30,000 ($39,600 if joint owners). Mobile home on land you own or a houseboat up to $23,000. Joint owners may go up to $30,000. Mobile home on land you don't own, $20,000 ($27,000 if joint). Property may not exceed 1 block in a city or town, or 160 acres elsewhere. Sale proceeds exempt 1 year if plan to purchase another home; soldier or sailor's property during a time of war. |
| Personal Property | Motor vehicle to $2,150; clothing, jewelry, personal items to $1,800 total; household items, furniture, utensils, TVs and radios to $3,000 total; health aids; cash for sold exempt property; books, pictures & musical instruments to $600 total; food & fuel to last 60 days if debtor is householder; earned income tax credit; domestic animals & poultry with food to last 60 days to $1,000; lost earnings payments for debtor or someone debtor depended upon needed for support; personal injury recoveries to $10,000; $400 of any personal property that is not already covered under any other exemption; bank deposits up to $7,500, and cash for sold exempt items; pistol; rifle or shotgun if owned by person over the age of 16, up to $1,000; burial plot; building materials that were to be used for the construction of an improvement; higher education savings accounts up to $7,500. |
| Wages | The greater of the following: $170 per week or minimum of 75% of disposable wages. Judge may approve more for low income debtor; wages withheld in a state employee's bond saving account. |
| Pensions | Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person; ERISA-qualified benefits and payments up to $7,500 including IRAs and SEPs; public officers and employee pension payments up to $7,500. |
| Public Benefits | Crime victims' compensation; proceeds of veterans' loans and veterans' benefits; any of these below listed benefits up to $7,500: old-age assistance, vocational rehabilitation, medical assistance, civil and disaster relief, general assistance, injured inmates benefits, aid to blind and disabled, workers' compensation, unemployment compensation. |
| Tools of the Trade | Tools, team with food that will last 60 days, or library up to $3,000 total. |
| Insurance | Life insurance proceeds or cash value if you are not the insured; group life insurance policy or proceeds; annuity contract benefits up to $500 per month; health or disability insurance proceeds; fraternal benefit society benefits up to $7,500. |
| Miscellaneous | Liquor licenses. |
Filing the Petition
Once you have chosen the type of bankruptcy you will be filing and considered all the exemption possibilities, you and the attorney will be able to file a bankruptcy petition. The bankruptcy trustee will then call for a meeting with those who hold your debts, so that they can ask any questions that pertain to your case. When and if you are granted the bankruptcy petition, you will be free to start a fresh or begin paying off you existing debts.
This article is provided for informational purposes only. If you need legal advice or representation,
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