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Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6392
Experience:  20 years of professional experience
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In state of Oregon. We recently had twins, were already

Customer Question

In state of Oregon. We recently had twins, were already struggling with normal bills. Now we are overwhelmed with medical, many have been sent to the Oregon revenue department for collections by Ohsu hospital. How does bankruptcy work for personal debts? What are rules for attaching debt to business and having business bankruptcy?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Maverick replied 12 months ago.

Welcome! My name is Maverick. Please give me a few minutes to analyze and/or research your inquiry and I will be back.

Expert:  Maverick replied 12 months ago.

You can file a chapter 7 or a chapter 13 personal bankruptcy. The chapter 7 is a liquidation type of bankruptcy where you will loose everything except exempt assets in favor of a fresh start. In a 13, you will be required to pay back some of your debts [ the secured debts like a car note or home loan] in a 3-5 year payment plan and you will likely pay pennies on the dollar for unsecured debts such as most medical bills and credit card debts. The business debts of a sole proprietor are his personal debts as well.

If you have a business that is not a sole proprietorship then it has to file a separate BK.

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Customer: replied 12 months ago.
Are there specific rules for whether a chapter 7 can be filed or not? We have very little assets, even if we do chapter 13 we have little disposable income. Quite literAlly all pay goes to bills and living expense basics and would prefer chapter 7
Expert:  Maverick replied 12 months ago.

Yes, you will need to take the means test here to see if you can file a 7.

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