Medford Chapter 7 Bankruptcy Attorney
When You Need a Fresh Start
Serving Klamath Falls & Medford
When an individual or business is insolvent, or unable to pay the debts
they owe, they may turn to bankruptcy for a fresh start. Chapter 7 bankruptcy,
sometimes called liquidation, is one of the most common types of bankruptcy
and is widely used by individuals, married couples, and businesses. Before
petitioning for Chapter 7 bankruptcy, it is important to understand the
benefits and risks. The knowledgeable and professional Chapter 7 bankruptcy
lawyer in Medford at our firm works primarily in this area and knows what
to expect. We help clients meet requirements and overcome obstacles at
every stage of the process, from the initial determination of their eligibility
for Chapter 7 all the way to the discharge from indebtedness that wipes
the slate clean.
Is Chapter 7 Right for You?
Chapter 7 bankruptcy can be a solution for those with few other options.
It blocks creditors from trying to collect, while a trustee sells off
the debtor's property to repay creditors to the extent possible. Debtors
are allowed to keep exempt property, which can include equity in a home,
a pension, a car, and other possessions. Because each state has its own
rules, and because there is also a federal list of exemptions, it's important
to consult an attorney about which assets will be liquidated. Debtors
emerge from this process debt-free unless they have certain debts that
cannot be erased by Chapter 7 such as child support, student loans, some
tax debts, and lawsuit liabilities. Our firm confidentially reviews these
issues with clients to ensure that Chapter 7 is the right choice.
Qualifying for Chapter 7
Before seeking protection under Chapter 7, debtors must be able to show
that they received credit counseling from a government-approved credit
counseling agency. Next, they must demonstrate that they can pass what
is called the means test. This is a two-step process that determines whether
or not the debtor is eligible for this type of bankruptcy. First, they
must demonstrate that their household income is below their state’s
median. Second, if their income exceeds the state median, they must demonstrate
that their disposable income is below the amount set by their state law.
They can then file a voluntary petition, along with detailed financial
disclosure, with the bankruptcy court. This filing leads to an automatic
stay, blocking most collection activity by creditors. A trustee is assigned
to review the information and, within a few weeks, there is a meeting
of creditors, at which the debtor, under oath, must answer questions from
the trustee and creditors. If all goes well, the debtor will receive a
discharge from indebtedness. Strategic advice and technical assistance
from a skilled attorney will prove invaluable at every step.
Call Oakes Law Office, P.C. today at (541) 204-2037
to schedule a consultation.