Oregon Bankruptcy Changes
Bankruptcy is designed to help those who have found themselves unable
to relieve debt due to varying factors. Most bankruptcy cases include a
loss of a major client, a current divorce settlement, severe illness
and hospitalization, and the loss of employment.
Bankruptcy is not for those who have the capabilities to extinguish
their debts but choose not to. Since bankruptcy abuse has become a
prominent factor in the United States, the government passed two acts
to prevent abuse as much as possible. Both of these acts are in place
in the state of Oregon.
Bankruptcy Abuse Preventions Acts
The 2005 Bankruptcy Act set new limits on who is eligible for
bankruptcy, especially Chapter Seven bankruptcy. The monthly payments
for Chapter Thirteen bankruptcy were significantly increased in this
act. The documents for filing for bankruptcy are now more in depth,
have many more details, and include twice as much paperwork in
comparison to recent years.
The Abuse and Prevention Act limits the access to the United States
bankruptcy courts in all fifty states. A mandatory means test has also
been implemented to weed out those not needing bankruptcy. A means test
will compare an individual's average income for a six month time period
to the median income of the state of Oregon.
Depending on where the individual's income average falls on the scale,
he or she may qualify for bankruptcy or may have a case dismissed.
Instructional courses are also mandatory at least six months before
filing and at least ninety days after the process is completed. Both of
these can be done in person, on the Internet, or over the phone.
Oregon Bankruptcy Basics
Bankruptcy petitions are to be sent to the Oregon bankruptcy court for
evaluation. Bankruptcy can be filed using a bankruptcy attorney or by
using a do-it-yourself application. Both of these can be done online
through Internet databases. Attorneys are often recommended to ensure
that all the necessary details are included.
Do-it-yourself methods can eliminate a middleman, but even those who
have petitioned in the past may have complications with the new forms
of bankruptcy. If a petition reaches the court and is later found to
have false information or incomplete information, the petition will be
dismissed from the court. When a case has been granted all foreclosures
and creditor statements will be frozen until the process has been
Chapter Seven Bankruptcy
If an individual's average income comes below the Oregon average, he or
she is often eligible for Chapter Seven bankruptcy. An assigned trustee
will be established through the court to liquidate all non-exempt forms
of property. Each kind of property will be liquidated at its necessary
value. The acquired compensation will then be used to pay off
creditors. Exempt property can include cars, homes, pensions, and
Chapter Thirteen Bankruptcy
If an individual's average income comes above the Oregon average, he or
she is often eligible for Chapter Thirteen bankruptcy. The court will
designate a repayment plan according to the individual's income and
expenses. The plan will not exceed five years and will be done with his
or her own personal income.