When you file a Chapter 7 bankruptcy, it stops your creditors from collecting on unsecured debts that you owe. This is known legally as an automatic stay. Bankruptcy is meant to give you a fresh financial start, when you find it difficult to repay your unsecured debts such as credit card debt, medical bills, etc.
Here are a few benefits of bankruptcy:
1. You will not be legally obligated to pay most or all of your unsecured debts.
2. You will not have to deal with creditors and debt collectors.
3. You usually can keep most or all of your property.
4. A creditor can not sue you, or garnish wages or a bank account.
Debtors often prefer filing a Chapter 7 bankruptcy over Chapter 13 bankruptcy. Here’s why:
Chapter 7 bankruptcy in Oregon: You do not have to pay any money owed to your unsecured creditors, such as credit card debt, medical bills, and money owed as the result of a vehicle being repossessed. However, there are some unsecured debts that you can not get rid of in a Chapter 7 bankruptcy such as child support, spousal support, money owed to a former spouse as a result of a divorce where you were both legally responsible for paying the debt and a judge ordered you pay that debt, student loans unless you can show it would impose an undue financial hardship on you to pay them back, a debt you owe as a result of committing fraud or being fraudulent, and some taxes.
A person filing for Chapter 7 bankruptcy can usually protect or keep all of their assets.
In a Chapter 13 bankruptcy the most a person or business can owe is $394,725 on unsecured debts, and $1,184,200 on secured debts. A Chapter 7 bankruptcy does not have any limitation on the amount of debt that someone, or a business, can owe.
In a Chapter 7 bankruptcy once the debt is discharged the debtor is not legally obligated to pay back that money, and the creditor can not try to collect the money owed. This is not the case in Chapter 13 bankruptcy where a debtor will pay back a certain percentage of what they owe to their unsecured creditors, over a period of three to five years.
To avail yourself of the benefits of a Chapter 7 bankruptcy, you need to have a bankruptcy lawyer in Grants Pass who can guide you through all the legal proceedings in and out of court.
Author’s Bio: Author is an avid reader and writer. This article is about class 7 bankruptcy in Oregon.
Keywords: Grants Pass Bankruptcy Lawyer, Chapter 7 Bankruptcy Oregon
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