According to the Oregon U.S. Bankruptcy Court, when you file for Chapter 7 bankruptcy, you hand over possession of certain assets to a trustee, who then sells the assets and pays as many of your debts as possible. However, during this process you may be able to keep property that is exempt from liquidation under federal or state bankruptcy laws. If you file for Chapter 7, you may choose to use either state exemptions or federal exemptions, but are prohibited from using both.
November 2015 Archives
If you have bills you are unable to pay in Oregon, creditors are allowed to contact you in order to arrange payment of the debt. According to the Oregon Department of Justice, a state law and the federal Fair Debt Collection Practices Act both prohibit creditors from engaging in harassing behaviors as they attempt to collect payment from you. The laws also outline how you can protect yourself and stop any harassment that may occur.
Wage garnishment is a device that the courts use in Oregon to ensure that a debtor repays a debt within a reasonable amount of time. In order to set up a wage garnishment, a creditor must usually first ask the court to intervene and determine that the debt is valid. Following a court order, the creditor creates a garnishment with the debtor’s employer. This requires the debtor’s employer to take a specifically allotted amount of money out of each of the worker’s paychecks in order to directly pay the creditor.
If you need to file bankruptcy in Oregon, a Chapter 13 filing may be the right choice for you. According to the Oregon State Bar, Chapter 13 is a type of bankruptcy that you can use to repay some or all of your debts while finding protection from creditors. This is in contrast to the more commonly used Chapter 7, which liquidates all of your non-exempt assets in order to pay off creditors. While both have their advantages for certain situations, you may find Chapter 13 to be the right choice for you.