Those individuals who are considering declaring bankruptcy should certainly comprehend the basics of the choice. When you study bankruptcy options and start to understand what bankruptcy is all about, the information you gather will let you make your decision. While it’s a wise decision to work with a bankruptcy attorney, it’s also important you understand what’s going on. When you choose the right lawyer, he or she will be able to help you through the form of bankruptcy you are qualified to file.
There are two varieties of bankruptcy available for personal cases: Chapter 7 and Chapter 13. Chapter 7 is used generally by people with limited or no income. There are established ranges of personal property which is exempt from being taken and sold by the bankruptcy court. That means depending on the value, a used vehicle, personal property and clothing will not be lost through a bankruptcy proceeding.
If you have a loan on a vehicle or a mortgage on your house, there is a good possibility you will lose them during the process. In these cases, the lien holder will reclaim the property that has been used as collateral for the loan. All the other unsecured loans (charge cards, medical bills) will be discharged in a Chapter 7 bankruptcy.
If you want to keep all of your individual property and meet income criteria, you should consider Chapter 13 bankruptcy. Using this type of proceeding, all of your current debts will be consolidated into one payment amount. You will make the payment to the bankruptcy court trustee, who pays off your creditors. In the beginning, your payments will be broken down among those with the greatest balances. Although, all of your creditors are going to be paid.
With a Chapter 13 individual bankruptcy, any past-due payments to any creditor, like utility bills and medical bills, will be part of the total amount that you owe and will be paid via the bankruptcy plan. Usually, the plan will be for a period of three to five years. If your earnings are sufficient to provide basic cost of living and pay the monthly loan amount, you can receive Chapter 13. However, if the income you generate each month does not allow room for the minimal payment and basic expenditures for living, you are going to be rejected for a Chapter 13 bankruptcy.
All in all, bankruptcy is not the best choice for everybody. However, it may be very beneficial for others. If you are thinking about declaring bankruptcy, working with a competent Oregon bankruptcy lawyer may help you have a far better chance at getting the bankruptcy accepted.
The Oregon bankruptcy attorneys of Northwest Debt Relief Law Firm are committed to helping people throughout both Oregon and Washington get out of debt, including, where appropriate, filing petitions for relief in the United States Bankruptcy Courts. Whether chapter 7 bankruptcy or Chapter 13 is right for you, Northwest Debt Relief Law Firm can help you get a fresh start and get your personal finances back on track.