Monday, August 12, 2013

How Oregon residents filing chapter 13 may benefit from new exemption law

As of July 1, 2013 bankruptcy filers in Oregon may elect to use federal exemptions. For general information on this change see my prior article here.

Most people understand that this is a big help fro people looking to file chapter 7 - essentially they have a better chance of protecting more assets that would otherwise be liquidated by a bankruptcy Trustee.

However, this change may also help people who are going into chapter 13 bankruptcy in Oregon.

In Chapter 13 one requirement of debtors is to pay an amount into their plan that is sufficient to cover their "Best Interest Number".  This number basically says a debtor will pay at least as much to their creditors if they were to file a chapter 7 bankruptcy.  So, if a chapter 13 debtor has assets that would not be exempt in a chapter 7 bankruptcy they may need to pay more money during their chapter 13.

With the new Federal Bankruptcy exemptions that are available now in Oregon many debtors may have a lower best interest number and will be able to propose plans in chapter 13 that pay their creditors less than they would have had to before the change.

To discuss your debt relief options, including a possible chapter 7 or chapter 13 bankruptcy feel free to call our office at 503-352-3690 or visit  We always offer free consultations.