Home Bankruptcy Oregon Bankruptcy

Oregon Bankruptcy

Oregon Bankruptcy


Oregon Bankruptcy Law


Oregon bankruptcy laws closely reflect federal laws, and the state requires the same procedures as many other states.  Although Oregon orders some tough restrictions on exemptions, the Oregon bankruptcy laws are there to help a person in the long run.  A person or family must accept the fact that the choice of Oregon bankruptcy will negatively affect their credit but often save their credit years down the road.  


Like most states, Oregon requires a person to attend a credit counseling course six months before the officially file for OR bankruptcy.  The same person must also present evidence of attending a debtor education course before reaching an official settlement.  


Oregon Bankruptcy : Personal and Corporation


Individuals, families, and corporations can file for different kinds of Oregon bankruptcy.  Depending on their amount of debt and means to income, a person or family will generally choose to file Chapter 7 or Chapter 13 bankruptcy.  If a corporation is struggling and needs time to develop a better business plan, the company may choose to file for Chapter 11. 


OR Bankruptcy : Chapter 7


If a person or family has a large amount of unsecured debt and limited resources for income, a judge and creditor may let them file for Chapter 7 bankruptcy.  In order to qualify for Chapter 7, though, a person or family must fall below the average household income.  The unemployment rate is quite high in Oregon (10.8%), and the average household income is $46,536.  


Even if a family falls below the average household income, a judge will sometimes order the family to file for Chapter 13.  If a person goes through with Chapter 7, they may receive the following exemptions:


• Up to $50,000 in homestead

• $840 of wages/month

• One vehicle

• Up to $9,500 in personal property


OR Bankruptcy : Chapter 11


If a corporation is facing economic instability, an owner may decide to file Chapter 11, giving them time to make necessary changes in order to turn more profit and reduce owed debt.  The owner is often granted the ability to oversee the changes and report back to a judge and creditor after a certain amount of time.  


OR Bankruptcy : Chapter 13


If a person chooses or is forced to file Chapter 13 bankruptcy, they are required to make payments over a period of three to five years.  In some cases, a judge may order the repayments to last longer.  If the debt is large enough, a person or family is often required to pay back at least 25% of the overall debt.  The main advantage to this measure is having a chance to keep your house.  




A creditor may collect your federal and state tax returns in some cases if you choose to file for Chapter 7 bankruptcy.  The tax returns qualify as assets in Chapter 7, but the funds are generally returned to you in a Chapter 13.  


Filing for Oregon Bankruptcy


You should immediately hire a lawyer if you are considering filing for Oregon bankruptcy.  A lawyer will help you with the dauntingly complex process of submitting certain documents, files, and fees.  They can also help you reach the best possible settlement with a creditor.  You can also file for OR bankruptcy through a state filing service, but you should attempt to hire a lawyer as much as possible.