Oregon Bankruptcy—Types Of Bankruptcy
Nobody wants to file a bankruptcy petition. Most of us try to avoid bankruptcy at any cost. However, in situations where you have no option but to file for a bankruptcy petition, it is advisable to gather all financial details and organize them properly. Make sure that you have individual bills, income statements, asset statements, as well as information regarding your debts and other various expenses. This will help the court in restructuring your payment schedule.
Oregon Bankruptcy Laws have two types of bankruptcy laws in Chapter 7 and Chapter 13. Based upon the financial situation of a person, he or she may choose either of these. Chapter-7 takes care of liquidation and Chapter-13 is about reorganization of credit. Some of the key points under these laws are:
- Under Chapter-7, an individual can keep his home or property. He can also keep the proceeds from selling the property subject to a few conditions being met.
- People filing for an Oregon bankruptcy under Chapter-7 has to meet the federal requirement of a means test which establishes a threshold level of income for a household comprising an individual or a couple and so on.
- To become eligible under Chapter-13, an individual should have a regular income and must not have more secured and unsecured debts than a stipulated amount as laid down by the law.
- Under Chapter-13, an individual filing for bankruptcy should be capable of repaying their debts in three to five years time frame.