Law Office of Jeffrey Totten - Bankruptcy Information

                     The New Bankruptcy Laws

The biggest changes to the consumer bankruptcy laws are the following:

Credit Counseling
Before you can file a petition for bankruptcy with the court, you must first complete a credit
counseling class. This can be done at home, 24/7, over the phone or online. The session lasts
between 30 minutes and one hour. The cost is usually $50 - though the service may waive the
fee if you cannot afford to pay. You will receive a certificate of completion once you have
completed the course.

Debtor Education Class
Before you can receive a discharge in bankruptcy you will have to complete a debtor
education class. This class can also be done online or over the phone.

Means Test
If you make above the median income in the state of Oregon (based upon family size) you
may be barred from filing a Chapter 7 bankruptcy. You will still be allowed to file for
Chapter 13.
   The chart below shows the median family income for Oregon in the year 2005. Note: the
amounts shown below are just a starting point. Depending on your situation, you may still
be able to file a Chapter 7 bankruptcy even if you make more than the median income level.
Contact the Law Office of Jeffrey Totten for further information.

             Family Size                                        Median Family Income
                     1                                                        $37,530
                     2                                                        $48,676
                     3                                                        $54,633
                     4                                                        $61,209
                     5                                                        $67,509

                                     Chapter 7

Basics
Chapter 7 is the most common form of bankruptcy. The end result of a Chapter 7 filing is
the discharge (elimination) of most consumer debts.

Exemptions
Under Oregon law creditors may not take all of your possessions, no matter how much
money you owe them. Different types of property have different exemption levels. The most
important exemptions are listed below:
Item                                                                Exemption
House                                                              $30,000 indivual ($39,000 joint-debtors)
Motor Vehicle                                                 $2,150 indiv or 4,300 joint-debtors
Home Furnishings                                         up to $3,000
Books, pictures, musical instruments           up to $600 indiv or $1,200 joint
Clothing, jewelry                                            up to $1,800 indiv or 3,600 joint
Tools of trade                                                  up to $3,000 indiv or 6,000 joint
"wildcard"                                                        $400 in any other personal property

The Process

First, it is wise to meet with an attorney to discuss bankruptcy in general and your options
in particular. If you decide that bankruptcy might help your situation, you will receive a
bankruptcy questionnaire to fill out. Fill this out and return it to the law office.

Under the new bankruptcy laws it is now necessary to speak to a credit counseling
agency before filing for bankruptcy. This can be done over the phone or online. It will
usually take about half an hour. When you have completed credit counseling a certificate of
completion will be sent to you or the Law Office of Jeffrey Totten.

The bankruptcy petition will then be prepared and filed with the bankruptcy court.

At this time, an "automatic stay" goes into effect. This prevents your creditors from
contacting you about the debts you owe them.

About a month after filing you will attend a "341(a)" hearing. This is a short, but formal,
meeting with a trustee. The trustee will ask you (under oath) about your finances and your
creditors will have a chance to ask you questions as well, although creditors rarely attend
these meetings.

Before you can receive a discharge, you must complete a Debtor Education class. This can
be done over the phone or online.

Finally, approximately two months after the 341(a) hearing, you should receive discharge
papers from the Bankruptcy Court.

Chapter 13

Creditor Harrasment

Your Credit Score