Chapter 7 is the most common and least expensive type of bankruptcy. From the moment you file chapter 7 creditors must stop all collection calls, all garnishments, and any other act to collect from you or your property. Chapter 7 was designed by Congress to give you a fresh start. In most cases you can keep all of your assets and wipe out all of your debts.
What chapter 7 cannot do
While chapter 7 can stop foreclosure for a few weeks or months, it does not allow you to catch up the missed payments on your home. Also, chapter 7 cannot discharge recent taxes, child or spousal support, or student loans. Chapter 7 cannot wipe out any of your debts if you have filed chapter 7 within the past 8 years.
Chapter 7 eligibility
Chapter 7 is available for individuals or companies. There are no debt limits to file chapter 7. If your debts are primarily consumer debts (such as credit cards, vehicle loans, or home loans for personal or family use) then you must pass the means test to file chapter 7. If your income is below the Oregon average then you are eligible to file chapter 7. If your income is above average the means test will compute your ability to repay your debts based on standard living expenses. If the means test calculation shows you have no money to repay your creditors, you may file chapter 7.
Keith Karnes has filed chapter 7 for individuals and businesses throughout Oregon. He offers a free consultation and flat fee arrangements. You will know before you file how much you will need to pay to file bankruptcy. We are a full service law firm. We will prepare your bankruptcy forms, provide the correct information to the trustee, attend your meeting of creditors with you, and guide you each step of the way.
Our services do not stop with the end of your case. If you have creditors that continue to collect during or after your bankruptcy we can help. We typically will send warning letters to creditors who continue to collect after you have filed bankruptcy. If this does not stop the problem then we can sue your creditors for violating your right to a fresh start.
In additon, we will review your credit reports to help you rebuild your credit after bankruptcy. While many creditors understand that people sometimes file bankruptcy, they do not understand when your credit report shows delinquent debts after your bankruptcy is over. This makes it appear as though you have debts that you did not pay after you filed bankruptcy. We can help you dispute the inaccurate information on your credit report and make sure it is accurate. This is the best thing you can do to improve your credit score after bankruptcy. If your disputes about your credit report do not solve the problem we can sue those responsible for wrongfully damaging your credit.
Contact Keith Karnes for a free full length consultation to discuss if chapter 7 is right for you.