$7 more to file Bankruptcy soon. New Bankruptcy Fees as of November 1, 2011

As of November 1, 2011, the following fees will be in effect for the US Bankruptcy Court

Chapter 7 Filing Fee – $306.00 (was $299)

Chapter 13 Filing Fee – $281.00 (was $274)

Adversary Proceeding Filing Fee – $293.00 (was $250)

Amendment to Petition Fee – $30.00 (was $26)

For a full list of the new fees, visit http://www.orb.uscourts.gov/Home/file_attachment/115_prending.pdf

Do I lose my home automatically if I file Bankruptcy in Oregon?

Many homeowners fear that if they file chapter 7 or chapter 13 bankruptcy they will automatically lose their home.  The fact is that is is very rare for a home to be lost in a bankruptcy. If you are a homeowner, and want to keep your home and file bankruptcy, chances are you will be able to if you are able to maintain your mortgage payments.

In Chapter 7 some assets can be liquidated if they are not "exempt" or protected under law.  In Oregon, the equity in a home is exempt up to $40,000 for an individual and $50,000 for a couple (or, "joint" bankruptcy).  So, if the Trustee does sale your home they need to pay you your exemption amount after closing.  The truth is, you probably need quite a bit of equity more than the exemption amount because if a Trustee in chapter 7 liquidates your home, they need to pay for the cost of sale (around 5-8%), pay the debtor their exemption amount ($40,000 - $50,000) and have enough leftover to pay the creditors a meaningful amount.  Given the current housing market it is fairly rare for homeowners to have too much equity in their home to lose in Chapter 7.

If you are uncertain about your home value a good place to start is www.zillow.com.  This is a website that looks at comparable homes in your area that are on the market and have sold and tries to give an estimate of your home's value. Of course, this won't always be truly accurate, but it is a good place to start when trying to determine the value of your home.  Normally, it is fairly clear on whether the home is in danger of being liquidated in a Chapter 7. Many homes right now are "upside down" meaning that the value of the home is less that what is owed against the home.  However, if the home has equity that approaches the exemption amounts it is a good idea to get an appraisal on the home before filing the Chapter 7 bankruptcy.

If a home has too much equity and would be at risk of being liquidated in a Chapter 7, a homeowner can still get bankruptcy protection while keeping the home by filing Chapter 13 bankruptcy. Since Chapter 13 is not a liquidation bankruptcy, rather a reorganization, homes are not sold by the Chapter 13 Trustee.  There are several complicated issues to be aware of in Chapter 13 and it is best to discuss a potential Chapter 13 with a qualified attorney in your area.

For more Chapter 7 and Chapter 13 Bankruptcy information in Oregon and SW Washington visit www.pacificbankruptcy.com

Portland Oregon Chapter 13 Meeting of Creditors

For every chapter 13 Case that is filed in the Portland area an initial hearing is set. This hearing is known as a "meeting of creditors" and chapter 13 debtors are required to attend.

For Chapter 13 cases filed in Portland and the surrounding areas the hearings are typically held about 6 weeks from the time the case is filed.

These hearings are located at the Chapter 13 Trustee's office at: 1300 SW 5th Ave
Suite 1700 Portland, OR 97201.

Although the debtors are sworn in and asked questions under oath, this is not held in a Court of Law.  Debtors are free to wear normal casual clothing and will not appear in front of a Bankruptcy Judge.

For more information about Portland, Oregon Chapter 13 and Chapter 7 please visit www.pacificbankruptcy.com.

Do you have to go to Court if you file Bankruptcy in Oregon?

As a bankruptcy attorney I get this question a lot. Bankruptcy cases are processed through the Federal Court system, so it would make sense that debtors who file need to go to "Court". However, normally a debtor in bankruptcy needs only to attend a meeting with a Trustee (also called a "hearing"). The Trustee is not a Judge. I've often heard debtors at their meeting respond to a question as "Yes, your honor". The Trustees are quick to remind the debtors that they aren't wearing a robe, and are not one of the Bankruptcy Judges.

The meeting with the Trustee is called the "341 Meeting of Creditors". The reason is has the "341" in the title is because it is the section of the bankruptcy code that requires this hearing. In Oregon, when an attorney represents a debtor in either a Chapter 7 or Chapter 13 bankruptcy the attorney is required to be present with the Debtor at the hearing.

At this meeting, the Trustee will swear the debtor in, check his or her photo ID and proof of social security number and proceed to ask a handful of questions. There are several different bankruptcy trustees in Oregon and they all have a different style, but their questions are all similar. A good attorney should be able to let the client know ahead of time what the Trustee will be interested in talking about the most in the specific case.

These hearings typically last 5 to 10 minutes in most cases. Despite my assurances that the meeting will be very easy an uneventful, many of my clients get nervous about this meeting. It is natural to be nervous because most people haven't had to do this before and are not sure what to expect. I usually advise my clients to show up a little early to their hearing so they can listen to a couple of them. This gives them an idea on what to expect. The most common comment I get from my clients after this hearing is "that was it" or "wow, that was easier than I thought".

This hearing occurs approximately 4-5 weeks after a case is filed. My office has a strict system in place to get any documents the Trustee needs as soon as possible after the case is filed and well before the hearing. This really helps the hearing go smoothly because the Trustee has had a chance to review everything well before the hearing.

For more information and frequently asked questions feel free to visit our Oregon Bankruptcy Firm's website at: www.pacificbankruptcy.com

Take Care,

Ryan