Bankruptcy is a legal process where a person who is unable to pay their debts can get a new start financially. Federal law provides the right to file for bankruptcy and all cases related to bankruptcy are taken care of in a federal court. In many cases, bankruptcy eliminates your need to pay many of your outstanding debts.
Chapter 7 Bankruptcy
There are a handful of different types of bankruptcy cases, known as chapter 7, chapter 11, chapter 12, and chapter 13. Bankruptcy chapter 7 in Portland, Oregon is one of the most common types of bankruptcy. This type of case is also called “liquidation” or “straight” bankruptcy. In this case, you give up any property of a certain amount in order to pay your creditors. The second most common type of bankruptcy is chapter 13. The two other types are used in specialized situations.
Determining if Chapter 7 is Right for You
What happens with a chapter 7 is that you or your lawyer files a petition with the court. This petition asks for the court to discharge your current debts. Essentially, what happens with bankruptcy chapter 7 in Portland, Oregon is that you give up property in exchange for having your debts cleared. In most cases, the majority of your property will be exempt, but what isn’t will be sold. Those who are not interested in selling off property like automobiles and homes may not be best served by chapter 7 bankruptcy.
Court Appearances
Many people who are considering bankruptcy have concerns about what sort of court appearances are required. In the vast majority of cases involving bankruptcy in Oregon, you will only be required to attend a “meeting of creditors.” At this meeting, you will be present along with the bankruptcy trustee and any creditors who decide to come. In most cases, this will be only a short meeting. You’ll answer some questions about your financial situations. In rare cases, you may need to appear before a judge at an official hearing.
Effect on Credit
In many cases, if you are filing for bankruptcy, you may already be behind on bills and have poor credit. Bankruptcy is not likely to make it worse. It will, however, show the bankruptcy on your credit for ten years. However, having your debt removed may put you in a better credit situation than before.
Questions about Chapter 7 Bankruptcy
If you are considering bankruptcy, Christopher J. Kane, PC can help. To find out more about my services, you can reach me at 503-380-7822 for a completely free consultation.
