Are you choking in debt and unsure what to do next? Are creditors giving you sleepless nights? Has a significant life event taken a toll on your finances? If your answer is yes to these questions, then it might be time to consider declaring bankruptcy.
While bankruptcy can give you a fresh start, financially speaking, not all bankruptcies are created equal. For a start, you need to understand the difference between Chapter 7 and Chapter 13 bankruptcies.
Once you have made up your mind that Chapter 7 bankruptcy is right for you, you need to go ahead and find out if you qualify for it.
So how do you qualify for Chapter 7 bankruptcy?
Chapter 7 bankruptcy, also known as liquidation bankruptcy is used for discharging unsecured debts. However, not just anyone can declare this type of bankruptcy. Here are some of the requirements you need to fulfill when declaring Chapter 7 bankruptcy:
- You must pass Oregon’s means test. Basically, your monthly income for the past six months must be less than Oregon’s median income. However, you may still qualify for Chapter 13 bankruptcy if your household is greater than the state’s median income.
- You must not have filed Chapter 7 bankruptcy in the last eight years or Chapter 13 bankruptcy in the last six years.
- You must not have unsuccessfully filed Chapter 7 or Chapter 13 bankruptcies in the previous six months.
- You must not have attempted to defraud your creditors or provided falsified information during your petition for bankruptcy.
- You must undertake financial counseling court by a certified credit counseling agency within six months before declaring bankruptcy.
Bankruptcy can be a welcome relief when you are heavily in debt. Find out how you can safeguard your rights and interests while declaring bankruptcy in Oregon.