Bankruptcy Attorneys in Salem, OR
Find Out If Bankruptcy is Right for You
Bankruptcy is sometimes shown as an intimidating legal process, yet it can often be the best step toward a fresh start. When faced with overwhelming debt, filing for bankruptcy can help you eliminate or reorganize your debt and provide you with a chance to rebuild your financial foundation. Pacific Cascade Legal and our Salem bankruptcy lawyers are committed to helping you navigate the complexities of bankruptcy and emerge better equipped to manage your finances moving forward.
Call (503) 427-9033 to see if bankruptcy could be right for you.
Chapters 7, 13 & 11 Bankruptcy
Bankruptcy is a legal process through which you can seek relief from mounting debts. There are several types of bankruptcy, though, so the process is not as easy as filing and waiting for the debt to go away. Our Salem bankruptcy attorneys are here to help you understand all types of bankruptcy, so you can be confident that you use the right one to resolve your financial troubles. It might even be possible that not using bankruptcy is the best decision based on the uniqueness of your situation.
The three most common types of bankruptcy used by individuals or small businesses are:
- Chapter 7: Chapter 7 bankruptcy, also known as a "liquidation bankruptcy," involves the sale or liquidation of some of the debtor's non-exempt assets to pay off outstanding debts. Most debts are discharged at the end of the process, meaning that the debtor is no longer responsible for them. A means test must be passed to use Chapter 7. It is usually only recommended for people with overwhelming debt and minimal assets.
- Chapter 13: Chapter 13 bankruptcy, also referred to as a "reorganization bankruptcy" or “the wage earner’s bankruptcy,” involves creating a payment plan over three to five years to repay debt. With this type of bankruptcy, filers can have a better chance of keeping their property and assets while making regular payments towards their outstanding debt. It is often recommended for people with a reliable income but significant debt.
- Chapter 11: Chapter 11 bankruptcy is a process designed for businesses and corporations with high levels of debt. Chapter 11 is similar to Chapter 13 in that it involves creating a court-approved repayment plan. It allows the business to continue operating somewhat normally, too, so the company can continue to make sales or products, even as it navigates the bankruptcy court system.
Five Benefits of Bankruptcy
Filing for bankruptcy can bring many benefits to those facing heavy debt. While it is not a decision to be made lightly, bankruptcy can be a powerful tool to help you achieve financial stability. When done correctly and filed with the help of a professional bankruptcy lawyer, it can be a surprisingly positive experience overall.
Five of the main benefits of filing for bankruptcy are:
- Immediate relief from debt collection: When you file for bankruptcy, an automatic stay goes into effect, which prevents creditors from contacting you or taking any legal action against you to collect debts.
- Discharge or reorganization of debt: Depending on the type of bankruptcy filed, you may be able to discharge most or all your debt or create a repayment plan that works for your current financial situation.
- Protection of assets: Certain types and amounts of assets (such as your primary residence, vehicle, retirement accounts, and personal belongings) might be protected from creditors using certain exceptions.
- Improve your credit score: Filing for bankruptcy can eventually improve your credit score by resolving outstanding debt and showing creditors that you are capable of rebuilding your finances.
- Reduced stress and better mental health: The stress of dealing with mounting debts and constant creditor calls can take a toll on your mental and emotional health. Filing for bankruptcy can provide instant relief from these stressors, especially when you are supported by a professional bankruptcy attorney.
Discover a Way Out of Debt – Call Now
If you're struggling with debt, we understand how overwhelming and stressful it can be. At Pacific Cascade Legal, our Salem bankruptcy attorneys are here to help you navigate the complexities of the legal system by providing personalized legal support and guidance throughout the process. We believe that everyone deserves a second chance, and bankruptcy could be what gives you that opportunity. To learn more or schedule a consultation, please contact us today.