New Oregon Law Makes Filing Bankruptcy Much Easier!
Finally there is greater relief for Oregonians filing Bankruptcy. On July 1,2013, Governor Kitzhaber signed a new law, effective immediately, that allows Oregonians more choices when they file for Bankruptcy. Over half of all Oregonians qualify to file the simplest Bankruptcy of all, known as a Chapter 7 Bankruptcy. In the past, when we filed Bankruptcy, we were allowed to use what is called the “Oregon exemptions” to protect some of our possessions in Bankruptcy. This allowed people filing Bankruptcy to have the tools they needed to continue to work and live productively after a Bankruptcy. This new law allows filers to protect their assets by choosing Federal exemptions instead of Oregon exemptions. Until this law passed, Oregonians were forced to use the Oregon state protections and were prohibited from using Federal protections. Most of my clients will benefit from choosing the newly available Federal protections.
Using the Federal exemptions, Oregonians may be able to retain over $11,000 in cash assets and still file a successful Bankruptcy. In the past, the limit in Oregon was $400. Folks who had extra unprotected equity in their assets under the state exemptions stood to lose their possessions in a Bankruptcy. Now we can apply this Federal $11,000 protection to any previously unprotected vehicle(s) or to any other unprotected assets, and keep them out of the
Bankruptcy.
And the news just gets better. Married couples filing Bankruptcy together can DOUBLE the protections above. So now, married Bankruptcy filers are eligible to protect up to $23,000 in cash or other assets. The exact amount of the exemption will vary depending on how much equity is in your home when you file Bankruptcy. As always, it’s important to seek the assistance of a Bankruptcy attorney to discover how the new law will benefit you.
Many Oregonians have looked into Bankruptcy and decided to wait because they had more property than the Bankruptcy law protected. This new law offers them the relief that they have been postponing. Under the new law, folks who have resisted filing Bankruptcy because they have a car worth more than $3,000, can now feel confident filing Bankruptcy and at long last receive the relief they deserve. We can use the extra protection of the Federal exemptions to protect cars (and other assets) up to $11,500, or $23,000 for married filers. This exemption is available for cars, savings, boats, collectibles…. Anything!
I feel fortunate to assist in empowering Oregon citizens by sharing information about Bankruptcy and how it might offer a fresh start to folks ready to take control of their finances. Feel free to reach out to my office to schedule a free initial consultation and learn more about Bankruptcy and the other options available to find lasting relief and a plan for a brighter financial future. I am eager to meet with you and let you know what type of bankruptcy you can file, and what you can expect when you do.
You can find a chart of the new Federal Bankruptcy protections compared to the Oregon Protections here: http://www.osb-dc.org/exemptionscomparisonchartoregonandFederal.pdf.
I am happy to meet with you to discuss these changes and how they might affect you.
Regardless of your financial situation, the fact that Oregonians now have a choice is a wonderful new development in the law. Bankruptcy is often an important tool in responsible financial planning. Find out whether your financial situation may benefit from the Bankruptcy laws. You are welcome to schedule a consultation even if you just want to find out more about Bankruptcy or the new law. Contact me to schedule a free initial consultation.
We are a debt relief agency. We help people file for Bankruptcy relief under the Bankruptcy Code.
