Stop the Debt Cycle Through Chapter 7 Bankruptcy

Have a lot of debt? In the event that you are drowning in debt, declaring bankruptcy may be able to aid you in resuming your normal life. You can eliminate your unsecured debts by filing for chapter 7 or bankruptcy. However, it is essential to know which debts are discharged in chapter 7 bankruptcy in Portland, OR.

At Northwest Debt Relief Law Firm, we believe that everyone deserves a fresh start in life, and we will do our best to help you get your financial health back on track. If you’re dealing with unmanageable debt and not sure what to do, let our Oregon bankruptcy law office help you. Schedule a free debt solutions consultation with us today. 

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a type of bankruptcy under U.S. federal law that provides for the liquidation of a debtor’s assets to pay off their debts. In Portland, Oregon, Chapter 7 bankruptcy is governed by the bankruptcy laws of the United States and is filed in the U.S. Bankruptcy Court for the District of Oregon.

In a Chapter 7 bankruptcy, a debtor’s non-exempt assets, if any, are sold by a court-appointed trustee to pay off their creditors. The debtor’s remaining debts are then discharged, which means they are legally forgiven and the debtor is no longer personally liable for them. However, not all debts can be discharged, such as child support, most taxes, and certain types of student loans.

How To Determine Chapter 7 Bankruptcy Eligibility?

To qualify for Chapter 7 bankruptcy in Portland, Oregon, the debtor must meet certain eligibility requirements, including passing the means test, which assesses the debtor’s income and expenses to determine if they have the financial means to repay their debts. Additionally, the debtor must complete credit counseling from an approved agency before filing for Chapter 7 bankruptcy.

What are the Dischargeable Debts in Chapter 7 Bankruptcy?

In general, the following types of debts may be dischargeable in Chapter 7 bankruptcy in Portland, Oregon:

1. Credit card debt: Unsecured credit card debt, including charges made for personal, family, or household purposes, may be dischargeable in Chapter 7 bankruptcy.
2. Medical bills: Unpaid medical bills may be dischargeable in Chapter 7 bankruptcy, including hospital bills, doctor bills, and other medical-related debts.
3. Personal loans: Unsecured personal loans, such as loans from family or friends, payday loans, and other types of personal loans, may be dischargeable in Chapter 7 bankruptcy.
4. Most types of unsecured loans: Debts that are not secured by collateral, such as most types of unsecured loans, may be dischargeable in Chapter 7 bankruptcy. Examples include unsecured lines of credit, signature loans, and certain types of promissory notes.
5. Certain types of older tax debts: In some cases, older tax debts may be dischargeable in Chapter 7 bankruptcy if they meet specific criteria, including the age of the debt and whether the debtor filed accurate and timely tax returns.
6. Social Security and unemployment over payments: Social Security is a federal government program in the United States that provides financial assistance to retired, disabled, and surviving individuals and their families. It is funded through payroll taxes paid by employees and employers, and the benefits are intended to provide a basic income for eligible individuals during their retirement years or in the event of disability or death.
7. Unemployment overpayment debts in Portland, Oregon refer to situations where individuals who have received unemployment benefits from the Oregon Employment Department (OED) were later found to have been overpaid. Overpayment can occur for various reasons, such as incorrect reporting of earnings, failure to report employment, or other eligibility issues. When OED determines that an overpayment has occurred, they may require the individual to repay the overpaid amount, resulting in a debt owed to the state.
8. Civil court judgments (unless they are related to fraud, intentional harm, or certain other types of misconduct)

However, it is important to note that not all debts can be discharged through Chapter 7 bankruptcy. Some common examples of nondischargeable debts include certain tax debts, child support or alimony obligations, student loans (unless exceptional circumstances exist), government fines or penalties, and debts arising from fraudulent or illegal activities.

Additionally, secured debts, such as mortgages and car loans, may not be automatically discharged in Chapter 7 bankruptcy. The debtor may have the option to surrender the collateral and eliminate any personal liability for the remaining debt. Alternatively, they may choose to reaffirm the debt and continue making payments to keep the property.

It is crucial for individuals considering Chapter 7 bankruptcy in Portland, Oregon, to consult with a qualified bankruptcy attorney who can provide personalized advice based on their specific situation. At Northwest Debt Relief Law Firm, we will guide you through the process, determine which debts can be discharged, and help you understand any potential consequences or alternatives.

When can I file Chapter 7 Bankruptcy again?

It will be eight years before you may file for Chapter 7 bankruptcy again if you previously did so and had your debts discharged. The eight years started ticking when the prior case’s bankruptcy petition was submitted. If you filed for bankruptcy under “Chapter 13” within the preceding six years, you could also have to wait before you can discharge fresh debts in a Chapter 7 case. Bankruptcy could have a ten-year effect on your credit score.

Contact Our Oregon Law Firm To Know More About Dischargeable Debts in Chapter 7 Bankruptcy 

Chapter 7 bankruptcy in Portland, Oregon provides individuals with an opportunity to seek a fresh start by eliminating or discharging certain types of debts. While the specific details may vary depending on individual circumstances and applicable laws, there are general guidelines regarding which debts can be discharged.

It is crucial for individuals considering Chapter 7 bankruptcy in Portland, Oregon, to consult with a qualified bankruptcy attorney who can provide personalized advice based on their specific situation. At Northwest Debt Relief Law Firm, we will guide you through the process, determine which debts can be discharged, and help you understand any potential consequences or alternatives.

Break free from debt! Start your journey towards financial freedom with our Oregon bankruptcy attorneys. We help families in Portland, Salem, Eugene, and Medford, OR. Schedule a free debt solution consultation with us now!