BANKRUPTCY
Making the decision to file Bankruptcy is never an easy one. However, we can assist you in the decision process to make your financial burdens more bearable. It is not only essential to file your bankruptcy properly and efficiently, it is also important to have an understanding of the process, your options, potential consequences and what happens after a bankruptcy. Gunn Cain & Kinney, LLP will assist you in all areas and will not leave you feeling the shame associated with the many taboos of bankruptcy.
Bankruptcy Abuse Prevention and Consumers Protection Act of 2005
The Bankruptcy Abuse Prevention & Consumer Protection Act requires debtors to pass more stringent guidelines to determine whether they can have their debts liquidated through Chapter 7, or whether they must enter a repayment plan through Chapter 13.
Claims of Exemption
Exemptions are designed to allow debtors to retain equity in certain real and personal property. To claim an exemption under Oregon law, the debtor must be domiciled in Oregon for the 730-day period immediately preceding the filing of the bankruptcy petition. Otherwise, the law of the state where the debtor was domiciled for the 180 days immediately preceding such 730-day period is used. One way to maximize the use of exemptions is to consider changing nonexempt assets into exempt assets.
Chapter 7: Liquidation
The chapter of the Bankruptcy Code providing for "liquidation," ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.) A chapter 7 bankruptcy case does not involve the filing of a plan of repayment. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets.
Chapter 11: Reorganization
The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements.
Chapter 12: Family Farmer or Family Fisherman Bankruptcy
The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code. Chapter 12 is designed for "family farmers" or "family fishermen" with "regular annual income." It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. Under chapter 12, debtors propose a repayment plan to make installments to creditors over three to five years.
Chapter 13: Individual Debt Adjustment
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
Loan Modification
A modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.
Located in Newberg, Oregon, our lawyers represent clients throughout Yamhill, Marion, Washington, Polk, Multnomah, and Clackamas counties. Contact Gunn Cain & Kinney, LLP today to assist you in filing your bankruptcy.
