Some people in Oregon who are struggling with debt might want to consider filing for Chapter 7 bankruptcy. Most debts can be discharged in a Chapter 7 bankruptcy, but if a person owns property that can pay for some of the debts, that property might be sold. Eligibility for Chapter 7 bankruptcy requires a person to meet several conditions.
The first step is generally the bankruptcy means test. In order to qualify, the person must make under a certain amount of money. This is based on the median income in Oregon. There are a few cases in which a person might not pass the means test but could still qualify for bankruptcy. An attorney may be able to help a person with this and other elements of a bankruptcy filing.
It must have been at least 180 days since a person’s Chapter 7 bankruptcy filing was dismissed because of violation of a court order, a fraudulent bankruptcy filing or another abuse of the system, or because of the person’s request to dismiss the filing when a creditor asks for the automatic stay to be lifted. The person cannot have had a Chapter 7 discharge in eight years or a Chapter 13 discharge in six years. It is also necessary to get credit counseling, including a course on financial management.
People should be aware that there are certain debts that cannot be discharged in bankruptcy. These include arrears for child support, most tax debt, most student loan debt and court judgments. However, a person might still want to file for bankruptcy if there is other debt since doing so could free up money to pay off the debts that cannot be discharged. People filing for a Chapter 7 bankruptcy are generally allowed to keep some assets to help them get a fresh financial start.