Apr 23, 2013

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Filing chapter 7 bankruptcy

Living paycheck to paycheck and still don’t have enough money to pay your bills? Sinking in the quicksand of debt can be a very scary and stressful time. Filing for chapter 7 bankruptcy in Portland may be a way to put yourself back on level ground.

Chapter 7 bankruptcy wipes out all unsecured loans, like credit card and medical bills, usually in as little as a few months. However, be sure this is the right point in your life to file this type of motion because it cannot be done again for another 7 years. It is however, a good idea to do this when you are standing at the bottom of a mountain of debt that you cannot repay anytime in the near future. Maybe you have become ill and can no longer work or are a victim of the recession and have lost your job; whatever the reason filing may be a good way to help get your life back on track. Keep in mind though; your income at this time does play a part in whether or not you can file this type of motion. The more income you have the less chance you have of being approved for a chapter 7 motion.

Be aware, however, that this will not by any means wipe out all of your debt. If you owe child support or back taxes, for instance, you will still be liable for repayment. Chapter 7 is generally known as a no assets form of bankruptcy, although if you have them non-exempt assets must be relinquished. This non-exempt property can be anything from a car loan to a house. Any propery that you may have used as collateral, to obtain a loan, is considered to be non-exempt and can be seized during bankruptcy.

Think about your decision to file bankruptcy carefully, especially, if you have put up property as collateral against a loan. Decide what is more important, starting with a clean slate or keeping your property. Filing for bankruptcy is a major life decision and should not be undertaken lightly. Know the laws and how you can benefit, but also what you stand to lose in this process.

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