Oregon residents may not file for bankruptcy because of the stigma surrounding it. However, it may be harder to truly get a fresh start after filing for those who wait too long to file. As a general rule, anyone who has a debt-to-income ratio of more than 40 percent should file for either Chapter 7 or Chapter 13 protection in the near future. The same is true for anyone who is not able to buy food or other necessities.

However, certain types of debt cannot be eliminated in a bankruptcy. For instance, student loans and court judgments are generally ineligible to be discharged. However, people who have credit card, medical or similar types of debt will likely find relief by filing for bankruptcy. Finally, a key sign that filing for bankruptcy may be prudent is the fact that a person goes into debt to pay off old debt.

In many cases, an individual’s credit score will go up after filing for bankruptcy, according to a 2014 report from the Federal Reserve Bank of Philadelphia. On average, a person’s score will increase by 82.1 points between the time he or she files and the time a case is discharged. Debtors who are unsure about what type of bankruptcy to file for should speak with an attorney or credit counselor.

Individuals who are looking to get a better handle on their debt may benefit from filing for Chapter 13 bankruptcy. This may allow them to reorganize their debt balances and repay them over a period of three to five years at an affordable monthly payment. During this time, creditors generally cannot take action like foreclosing on a home or repossessing a car. A lawyer may be able to advise someone more about the additional benefits of filing for bankruptcy.