What You Need to Know Before Filing a Chapter 7 Bankruptcy
June 27, 2019
Here at Christopher J. Kane, PC, we often get asked about how to qualify for a Chapter 7 bankruptcy requirements in Oregon. There is more than one type of bankruptcy you qualify for. Each case depends on your situation, assets and ability to repay. Chapter 7 liquidates the debtor’s assets to pay off remaining debt but may not be an option for everyone.
The process of Chapter 7 bankruptcy works similarly to other bankruptcy options. You must file with a bankruptcy court in the local area. The court wants to see a financial affairs statement, assets and liabilities schedules, executory contracts schedule, unexpired leases schedule and current income and expenditures schedule. For primary consumer debt relief, debtors file additional paperwork.
According to the United States Courts, all nonexempt assets of the debtor are sold to repay debts to creditors who have a claim. You may have to sell property, but there is no repayment plan like a Chapter 13 bankruptcy. Certain businesses such as sole proprietorships and partnerships may also qualify for Chapter 7.
Once the process starts, most collection actions automatically stop. You should not receive any more collection calls or other forms of harassment from their creditors. You may experience debt relief with six months of filing their petition. The length of time depends on how many assets must sell to pay remaining creditors.
Bankruptcy is a weighty decision you should consider carefully before filing any petition. Our web page has information on how you can find relief through filing a bankruptcy.
If you have questions, want more information or take advantage of our free consultation connect with us today! We are here to help.