Information about bankruptcy
Chapter 7 bankruptcy ("Straight Bankruptcy") is the most common
- Available only if income in the previous 6 months was below the median income
- The bankruptcy takes about 3 months from filing to discharge
- The court fee is $299
- Attorney's fees depend upon the number of creditors and complexity
- All of the fees and court costs must be paid prior to filing the bankruptcy
Chapter 13 is a "payment plan" bankruptcy that lasts for 3 to 5 years
- Pay a payment each month to the Chapter 13 Trustee who pays your creditors prorata
- Payment amount varies with each case and depends upon income, monthly expenses and what creditors need to be paid
- The court filing fee of $274 and a portion of the attorney's fees must be paid prior to filing, but the remainder of the attorney's fees may be paid through the Plan
- Cure arrears on your house or car
- Pay tax debts
- Attorney's fees depend upon the number of creditors and complexity
Classes Required:
- Online or telephone: "CREDIT COUNSELING" before filing bankruptcy (within 180 days). www.usdoj.gov/ust/ "Credit Counseling for Consumers" "Oregon"
- Online or telephone: "DEBTOR EDUCATION" after the bankruptcy is filed. www.usdoj.gov/ust/ "Personal Financial Management Courses for Debtors" "Oregon"
Materials required:
- Bankruptcy worksheet (I will provide)
- Tax returns for the last two years with W-2s
- Bills (and credit report, if available) for all debts
- Pay stubs for 6 months and proof of all money received for 6 months
- Bank statements for several months
- Tax assessor's statement for real property owned
- Taxes owed
- List everything owned and its value (on worksheet)
- Business financial statements, if a business is owned
Until the bankruptcy is filed, creditors can continue collection, foreclosure and garnishment. You must make sure that you are reporting everything that you own and all that you owe. Penalty of perjury carries a 5 year prison sentence and a $500,000 penalty for violation