Written by Attorney Tina Tran.
Updated July 11, 2019
If you are thinking about filing bankruptcy, you are not alone. Recently, Oregon’s second largest dairy farm, Lost Valley Farm, filed for bankruptcy due to an overwhelming amount of debt. The number one reason people file for bankruptcy in Oregon, is due to piled up medical bills. Bankruptcy can be a way to help you get out of debt and start enjoying your life again. There’s no shame in filing bankruptcy. The first step to filing an Oregon bankruptcy, is qualifying under the Chapter 7 Means Test. Congress passed the Bankruptcy Reform Act in 2005. There was concern that people filing for relief under Chapter 7, were filing fraudulent bankruptcy petitions. Congress implemented the Means Test to make certain that the only people filing Chapter 7 cases where those who truly needed that relief. The Chapter 7 Means Test, compares your household income to Oregon’s median household income. If your household income falls below Oregon’s median income, you immediately qualify for Chapter 7 bankruptcy. If your household income is above the median household income, then you will need to complete the second part of the Means Test to see if you qualify for a Chapter 7 bankruptcy.
Oregon Median Income Levels
Oregon Median Income Standards for Means Test for Cases Filed On or After May 1, 2020
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Discharge in Bankruptcy for Oregon
An Oregon bankruptcy discharge, is an order issued by the Bankruptcy Court, stating you no longer have to pay your creditors for the debts that you owe them. A bankruptcy discharge also notifies creditors that they are no longer allowed to contact you. A discharge is your ultimate goal when you file a Chapter 7 bankruptcy. Only non-dischargeable debts are not wiped out. Some debts that are not dischargeable include: student loans, tax debt, child support and alimony.
Shortly after you receive your bankruptcy discharge,your bankruptcy case usually closes. To get a discharge in a Chapter 7 bankruptcy, you have to register for and complete a credit debtor education course. If you are filing as a married couple, both you and your spouse have to take the courses individually. The Court will require proof that you both completed these courses. If you do not complete the debtor education course, the Court can deny your discharge. A discharge usually occurs within the first 60-90 days after you attend your first Court hearing in front of the Trustee. The Trustee, is an attorney who represents your creditors. The trustee acts as a gatekeeper to make sure that you are being honest. After the bankruptcy Court issues your discharge the Court will close your bankruptcy case as long as there are no other issues.
It is important to note that a bankruptcy discharge is not an absolute right. If you are not honest, or misrepresented something on your bankruptcy petition or in Court, these can be grounds to have your discharge denied.
Oregon Means Test Calculator
The Oregon Means Test calculator, is used to determine whether or not you qualify for a Chapter 7 bankruptcy. The calculator uses a formula to determine your disposable income. There are many online calculators you can use, but it is important you use one that is up to date with the correct calculations.
The first step to the Chapter 7 Means Test is to determine whether your income is below Oregon’s median income level. The Statement of Your Current Monthly Income form, calculates your income and compares it to the median income for households of your size in Oregon. If you take the Means Test and there is enough money left over to repay some of your debt, then you may not be able to file a Chapter 7 bankruptcy. When Calculating whether you qualify under the means test it is important to gather all sources of income, including wages, alimony, and child support, and calculate your monthly income by adding up your income for the previous six months before you filed for bankruptcy. The court compares your annual income to other households of the same size in Oregon. You have passed the oregon Means test if you fall below the income levels of households of your size in Oregon. If your income is above the median income levels, you will need to move on to complete the next part of the Means Test. Online you will find many different Oregon Means Test calculators. However, not all of these are created equally. Many are out of date or inaccurate. It is important to use a Chapter 7 Means Test calculator for Oregon bankruptcy because different states vary on how they calculate median incomes. To provide you with the most efficient and up to date information Upsolve provides an accurate, up-to-date Means Test calculator.
Upsolve may be able to assist you in filing a Chapter 7 bankruptcy. Upsolve offers free services to help people file bankruptcy on their own. .
What Happens If I Fail The Means Test Calculator For Oregon?
If you fail the bankruptcy Means Test in Oregon, the first step is to make sure that you calculated your income correctly. Sometimes even one number can throw your numbers off. If you still do not qualify then you may want to speak with a local attorney that can help you review your expenses. Sometimes, people forget little expenses each month. An attorney can help you go over those expenses to make sure you have included everything correctly. If you still do not qualify, then perhaps your circumstances may change in the future. If you will be out of work, work less overtime etc. then you may qualify in a few months. If you have exhausted all options and still do not qualify then you may have to file a Chapter 13 bankruptcy.