| I heard the bankruptcy laws have changed. Can I still file? Yes, you can still file. The bankruptcy laws changed in October, 2005, making it more complex, time consuming, and expensive to file your case. However, for most people, the end result (a discharge of your debts) remains the same. Who should file bankruptcy? There are a variety of reasons why people file for bankruptcy. Common examples include: - Home foreclosure - Wage and/or bank garnishments - Overwhelming debt - Harassment by creditors or collection agencies. - Divorce How much does it cost to file bankruptcy? Court costs - $ 299 for a chapter 7; $274 for a chapter 13. Credit class - $30-50 depending on the company you choose. (taken before filing) Debtor education class - approximately $15 per person (after filing) Attorney fees Chapter 7: for a basic chapter 7 are usually between $900 to $1,300. Complex cases are more expensive. An exact quote is given after the free consultation. Chapter 13: typically $3,200. *Most of the fee is paid through your payments to the chapter 13 trustee. The amount needed before filing a case varies from $300 to $1500. What is the bankruptcy process like? After the free consultation, you can retain my services with a downpayment of at least $200. This allows you to refer your creditors to my office. For Chapter 7 cases, the remainder of the attorney fee will need to be paid prior to filing the case. Under the new bankruptcy laws it is now necessary to complete a credit counseling course. 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. Within 40 days after filing the bankruptcy petition you will be required to attend a "341(a)" hearing. This is a short, but formal, meeting with a trustee. The trustee will ask you (under oath) about your assets, transfers you may have made prior to filing, and about your recent financial history. Creditors have the opportunity to come to this hearing but they rarely do. Before you can receive a discharge, you must complete a Debtor Education class. This is typically done online and costs approximately $15 per person. Finally, approximately 90 days after the 341(a) hearing, you will receive a discharge in bankruptcy. If your case is a "No Asset" case, then your case will be closed and the bankruptcy process is over. If your case is an "Asset" case, then your case will remain open until the trustee collects and/or liquidates any assets and distributes the proceeds to your creditors. Asset cases can remain open a year or longer after discharge. |
| For additional answers to Frequently Asked Questions visit the webpage of the US Bankruptcy Court for the District of Oregon by clicking here. |
Frequently Asked Questions
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