| Chapter 7 bankruptcy is a useful tool to help eliminate consumer debt and help you get the fresh start you deserve. New bankruptcy laws were passed in 2005, but truth be told, most people seeking to file Chapter 7 bankruptcy still qualify under the new law! We are well versed in the new bankruptcy law. We will help make the filing process as simple as possible for you.
The biggest change consumers who are filing under the new law have seen is that there is more paperwork to provide your attorney before you file. Our attorneys will assist you in obtaining this paperwork needed, the most common being proof of your income (save those paycheck stubs!), your tax returns and your bills. We will help you get your tax returns and your credit reports, so that’s less you have to worry about. We have lists of companies that will help you get real estate valuations, car values, title searches and more.
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| Credit counseling / Financial Management The other major change in the law that affects consumers is that you have to complete two classes in order to get your discharge. The first class, Credit Counseling will help you learn about all of your options available to you. We want to be sure that bankruptcy is your best option. Bankruptcy is not something to take lightly, but should only be undertaken after you have exhausted all other options available to you. If you don’t need to file, you shouldn’t. Our Oregon bankruptcy lawyers will review your situation and advise you whether Chapter 7 is your best option. Only once you complete the counseling program we can file a Chapter 7 case for you. The second class is Financial Management, also referred to as debtor education. This class will help you re-establish yourself after you file bankruptcy. It will help you learn from the process, and how to make the small changes to avoid falling into the same pitfalls that may have caused you to file bankruptcy in the past. We view the bankruptcy process as a learning experience. We hope each and every client uses the process to get back on their feet, use their fresh start to start to rebuild their credit, and their lives. Our former clients have taken advantage of the relief the bankruptcy filing has given them by moving on; grasping the opportunity provided them.
Benefits of Chapter 7 - Stop harassing creditor phone calls
- Stop garnishments and wage assignments from being deducted from your paycheck
- Stop creditors from suing you
- Stop the freeze on your bank account
- Stop utility shut off and can re-establish service
- Stop the suspension of your driver's license for unpaid tickets or accident claims
- Discharge hundreds and thousands of dollars of debt
- Discharge certain tax liability
- Discharge all of the penalties and the doubling and tripling amounts of parking tickets
- Get a better payment plan and interest rate on certain car notes
- Get a better payment plan for your furniture, appliances, jewelry and electronics
- Remove judicial liens on your home
- Discharge your obligation for any cosigned debt
- Discharge certain over-payments of government debts, like unemployment and public aid
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| Exemptions Under Chapter 7, most people are able to keep their home and cars. They can keep their pensions, 401(k)’s and they can keep their furniture. In fact, most people keep everything they own when they file bankruptcy; however, there are some exceptions to this. If you have a Picasso painting and file Chapter 7, the bankruptcy trustee will sell it and use the proceeds to pay your creditors. Each state has ‘exemptions’ which are state laws enacted to protect certain assets of a debtor when they file bankruptcy. These statutes are complicated, with many requirements and loopholes, so your bankruptcy attorney should be well versed and knowledgeable about the Oregon exemptions that can affect your case. T We have the experience and knowledge to properly educate you about your bankruptcy case. Call today to speak with a bankruptcy lawyer at our Firm. We will give you a consultation and review all of the options you have available based on your individual case. Bankruptcy Process The chapter 7 bankruptcy process takes about ninety (90) days once your case is filed. We file every week. Our office will file your bankruptcy case using state of the art software and our advanced computer system. The Clerk of the US Bankruptcy Court in Oregon requires all cases to be filed electronically. Your first task after you meet with a lawyer will be to gather up all of the requested information and documents. Next, you need to complete your credit classes. We will then prepare a draft of your bankruptcy petition for you to review. Your bankruptcy petition is a compilation of your financial situation. It lists down all of your assets and personal belongings. It summarizes your monthly income and expenses. It will list down all of your debts and financial obligations. Finally, it will provide a breakdown of your financial affairs. Once you sign off on the final version of your bankruptcy petition and have paid the court filing fee, we will file your case. Once filed, we will have an electronic record of your file, which we will provide you, and it is yours to keep. After your case is electronically filed, the court will send notice to all of your creditors (the companies you owe money to). You will get a copy of this notice as well. This notice will include your case number assigned to you. It will also list usas your attorney. No one can contact you regarding your debts once you are filed. By law, all creditors must contact us. Should any creditor contact you after your case is filed, contact us and we will send them an “automatic stay.” An “automatic stay” is a court order preventing any creditor from contacting you while your case is pending. If a creditor violates the automatic stay after receiving notice of your bankruptcy, the court may award you a monetary award for damages. Your bankruptcy notice will also provide you with a list of important dates; including the date your case was filed, the date for your meeting of creditors (also called your §341 meeting), and the last date that your creditors may object to your bankruptcy discharge. Approximately a month after we file your bankruptcy case, you will need to attend your meeting of creditors, the §341 meeting. This is not court, but basically an administrative hearing. At each meeting, you and your attorney must be present. Although your creditors have the right to attend this meeting also, in actuality they rarely do. You see, the US Bankruptcy Court assigns a Trustee to review your case. The Trustee is usually an attorney. The Trustee represents all of your creditors. The trustee will swear you in and ask you some questions about your bankruptcy schedules and your financial situation. You need to bring a photo ID, your social security card and your bankruptcy notice to the meeting. Your attorney may ask you to bring additional documents as well, such as paycheck stubs, real estate appraisals, or other similar information. Contact your attorney before the §341 meeting to be prepped for the meeting. After the §341 meeting, you are in the homestretch. If you haven’t done so already, you need to complete your financial management course and provide your certificate of completion for your attorney to file with the Bankruptcy Court. If you have financed any items, like a house, car, furniture, appliances, electronics or jewelry, your attorney will send you a reaffirmation agreement. This reaffirmation agreement is a document (usually prepared by your finance company) which states that you want to stay responsible for the debt, (let it survive bankruptcy) in order for you to keep the asset you are buying. Reaffirmation agreements are not required in bankruptcy, so you should discuss your options available with your attorney.
Finally, approximately 3 months after your case was filed, you will receive your official bankruptcy discharge notice. This is a court issued document verifying that all of your dischargeable debts have been eliminated by law. The court may keep your case open a few weeks longer to process any other administrative items, but this means your case is done and you have received a bankruptcy discharge. Congratulations. Your next step is to start the rebuilding process. Take it slow. Speak with our attorneys and staff. We will help guide you on the path to rebuilding your credit. We can help you avoid the pitfalls that can cause you financial difficulty down the road. You are now on the right path to financial freedom! |
