The unknown is always frightening. This is why knowing what you can expect after declaring bankruptcy will help make the process a bit less intimidating. The following will cover what to expect during the personal bankruptcy procedure in Portland.
Once you file, you are issued a case number and a trustee on your case. The trustee’s job is to oversee the filing, review the necessary forms, and may request additional documents for information. The trustee is also in charge of a meeting with your creditors.
Filing for personal bankruptcy in Portland means you are immediately shielded from creditors. This protection, the automatic stay, means creditors cannot take any action against you for collections. This means no calls, collections for medical and credit cards, personal loans, unsecured debt, and other debt. Any wage garnishments previously ordered also cease immediately upon the filing process.
All bankruptcy filings in Oregon appear on a credit report with the major credit reporting firms. A Chapter 7 filing will remain on credit reports for 10 years. A Chapter 13 filing will remain for 7 years after filing date and for 10 years if the case was not completely discharged.
This does mean your credit rating will be affected. Most people experience a credit decrease of between 100 to 200 total points.
Many are despondent upon the news of their credit, but there is good news to be found – you can start the rebuilding process once the discharge is entered. This means from one to two years later you can start the rebuilding process. Most credit scores are low because of previously missed payments. The grant of a discharge erases most, if not all, unsecured debt. Credit scores rebound because of a lack of missed payments and a zero balance.
You will receive credit card offers soon after. Wise usage is recommended, as is getting a new card. Making the required payments is vital to good credit, so pay the bill fully each month.
The filing process is the most time-consuming process. Here are the steps you will take as you move forward with your life.
Payments – The filing fee is necessary. You may qualify for a waiver or apply to pay in installments. The installments are due within 120 days of filing. Failure to make the payments may result in your case dismissed and no relief for the personal bankruptcy in Portland.
Counseling – You will take two required credit counseling courses. The second course must be done within 60 days of meeting with your creditors. A completion certificate is required for court filings.
Meet with creditors – Be prepared with a picture ID and copy of your social security card. You will also need documents. The trustee will send you the required list. Make sure you have these, or your case may be dismissed.
The meeting – This creditors meeting, the 341 hearing, will take 5 -10 minutes. Creditors may or may not attend. Here you will meet your trustee and answer questions about your filing. You are almost done with your personal bankruptcy in Portland at this point because you are eligible for a discharge of your Oregon bankruptcy case.
These steps mean you will be well on the way to your fresh start, an opportunity to rebuild your credit, and move on with your life.
My bankruptcy law office is in Portland and that means we have the ability to work with anyone who needs to file bankruptcy in Oregon. This includes the following handling cases in the following counties: Multnomah, Clackamas, Washington, Columbia, Tillamook, Yamhill, and Mt. Hood. Contact us for a free consultation.
Every case is different, and we approach each client this way. Generally, filing for bankruptcy comes down to helping you with the following situations:
Ceasing salary and wage garnishment.
Stopping the foreclosure process on a home.
Eliminate annoying and harassing phone calls.
End abuse on the part of collection agencies.
Protect the home utilities from shutting off.
Protect your car from repossession.
Return your car to you in the case of repossession.
Pay unpaid child support.
Protecting your driver’s license.
Take your next step to your “Fresh Financial Start!”
If you have questions, want more information, or want to take advantage of our free consultation, connect with us today! We are here to help.