The bankruptcy code is divided into four chapters. Chapters 7 and 13 are the form of bankruptcy where most people find relief from their debts. Chapter 11 is for corporations or for individuals who want to reorganize but they have more debt than is allowed in a chapter 13. Chapter 12 is for farmers or fishermen.
Chapter 7 is also called “straight bankruptcy” or “liquidation bankruptcy.” An individual, family or business financially struggling is eligible to file a chapter 7. Credit cards, medical bills, deficiency balances on repossessed cars are examples of debts discharged in a chapter 7 bankruptcy. In some instances back taxes are dischargeable in a chapter 7 bankruptcy. A chapter 7 bankruptcy takes about 90 days from start to finish. It is important to remember some debts are not dischargeable including child support, some taxes, student loans, traffic tickets, restitution and court fines. Contact us to discuss whether chapter 7 fits your situation.
Chapter 13 is typically used to reorganize debt between three and five years. During the life of the bankruptcy, a monthly payment is made to the bankruptcy trustee who then distributes the funds to the creditors while protecting the debtor from on-going creditor collection or property seizure. The chapter 13 plan payment may be used to catch up on the back house or car payments. A chapter 13 may be used to reduce the loan amount or interest on a car loan or stop a tax or child support garnishment. Contact us to discuss whether a chapter 13 fits your situation.
Chapter 11 is used by corporations to reorganize debt, but it may be used for individuals who have too much debt to qualify for help under chapter 13. Contact us to discuss whether a chapter 11 fits your situation.
Chapter 12 bankruptcy is for struggling family farmers or fishermen. The bankruptcy allows a chance to reorganize debt and keep the family farm or fishing operation going. It does not pertain to debtors with primarily consumer debts. Contact us to discuss whether a chapter 12 fits your situation.
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Attorneys
M. Caroline Cantrell
Tami Bishop
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Paralegals
Wendi Tibbetts
Jackie Gallagher
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Locations
1500 NE Irving, Suite 100
Portland, OR 97232
549 NW 2nd Ave.
Canby OR 97013
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Phone
Portland Office (503) 236-9211
Fax (503) 236-0209
Canby Office (503) 266-0383 |
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