Medford Chapter 7 Bankruptcy Attorney
Serving Klamath Falls & Medford When You Need a Fresh Start
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
bankruptcy, 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
The Means Test
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 with a Medford chapter 7 lawyer.
