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What is a debtor’s examination?

As you are aware from previous blog posts, when you file for bankruptcy, you need to be completely honest about your employment and financial situation. The same honesty is just as crucial if you are called in to a debtor’s examination. This procedure may be a daunting experience for you and other Eugene residents; however, it is not one that you can avoid if you are summoned. Therefore, it may help to understand what happens during this process.

OregonLaws.org points out that a debtor’s examination is a brief court procedure that gives a creditor information on whether it may be able to collect a debt from you. This is an official court summons, and may not be ignored without being held in contempt of court. You will be required under oath to give honest information about your income, additional debt, assets that you own and other information. This may give the creditor enough information to determine whether it is unlikely to collect any money from you, or if it might be able to take measures to garnish your wages or bank account. A debtor’s examination may also be a way for a creditor to pressure you to repay the debt before further action is taken.

Either before or during a debtor’s examination, you might be able to negotiate terms with the creditor that you are able to meet. Considering bankruptcy might be another option if you are worried about the debt you owe. Since this area of law is complex, the information in this blog should not be taken as legal advice.

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