Bankruptcy
What is Bankruptcy?
Bankruptcy is the process by which individuals and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy laws. On the date one files for bankruptcy protection all creditors are prohibited by law from attempting to collect from you.
What are the differences between Chapters 7, 11, 12 and 13?
Chapter 7 bankruptcy is the typical form of bankruptcy many people consider when their debts become too much for them to handle. Another way to describe chapter 7 bankruptcy is by the term liquidation. Depending on the state in which the bankruptcy is filed, and where an individual lived prior to filing, each individual is permitted to retain certain property, called exempt property. All nonexempt property is available for payment of unsecured debts. If you are interested in filing chapter 7 bankruptcy, click here. Chapter 11 bankruptcy is used mainly by businesses to provide the business protection from creditors while it attempts to reorganize its debt and stay in business. During this process, the business is permitted to continue operating. If you are interested in filing chapter 11 bankruptcy, click here. Chapter 12 bankruptcy is exclusively for family farmers and fisherman. If interested in filing chapter 12 bankruptcy, click here.Chapter 13 bankruptcy requires an individual to put together a budget wherein all funds left each month after paying necessary expenses are turned over to a bankruptcy trustee who uses the funds to pay unsecured creditors. This process typically lasts for a period of three to five years. After which, most of the debts are discharged. If you are interested in filing chapter 13 bankruptcy, click here.
What if I only have some debts I want discharged?
Under current bankruptcy law, all debts must be listed when filing bankruptcy. However, there are no laws prohibiting a debtor from repaying any creditors after receiving a discharge. Am I eligible to file chapter 7? In order to determine eligibility to file chapter 7 bankruptcy, one must follow a multi-step process. The first step is to determine the median income for the state in which you live for your family size. If your income over the last six months is less than or equal to the median income, you are eligible. If your income is more than the median income you must follow a multi-pronged test to determine your eligibility.Why can't I file without an attorney or use a bankruptcy preparer?
The bankruptcy petition consists of several schedules and other forms, totaling between 40 and 60 pages depending on the number and type of creditors, the extent of property, and other factors. Because of the number and complexity of the forms, most debtors will have a difficult time filling the forms. Bankruptcy preparers can fill out the required forms but are prohibited by law to provide any sort of legal advice. To determine the appropriate course to follow and to make sure you are well advised during the process, consider hiring an attorney. For a consultation feel free to contact my office at (503) 364-2176.How much does it cost to file?
Chapter 7 filing fee--$306 Chapter 11 filing fee--$1,046 Chapter 12 filing fee--$246 Chapter 13 filing fee--$281 Attorney fees for filing differ depending on the chapter you are filing. My fees start at $800, depending on the complexity of the case. I charge a flat fee for all chapter 7 filings, due prior to the date of filing, and you will know the total fee due at the end of your consultation. For all other chapters, a retainer will be required, but most of the fees may be paid during the life of the plan.
If you have a question not answered on this page, feel free to send it to me using the contact us page. My typical practice is to respond to all emails by the end of the next business day.