You are considering filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Cottage Grove. Bankruptcy is a common debt relief choice. In fact, many people in Oregon have received bankruptcy relief, and Cottage Grove is no different. In fact, there were 5,495 bankruptcies filed in Oregon in the year ending June 30, 2021 (Source). With a population of 10465, I’d estimate a fair number of those were in Cottage Grove.
The purpose of this article is to provide an extensive list of filing bankruptcy in Cottage Grove including:
Without further ado, let’s get started with Chapter 7 bankruptcy.
Chapter 7 bankruptcy is the most common consumer bankruptcy in the United States. People appreciate the simplicity of Chapter 7 bankruptcy, the cost of the Chapter 7 bankruptcy, and the speed of debt relief. For example, in Cottage Grove, you could get debt relief in about 120 days with a Chapter 7 bankruptcy.
One of the challenges of Chapter 7 bankruptcy in Cottage Grove is that you have to qualify. In order to qualify in Cottage Grove, you often have to pass the Oregon bankruptcy means test. You can estimate that qualification below in Cottage Grove. Let’s cover how you can qualify.
The first part of the means test is to understand your income in relation to the median income levels for Oregon. It considers the average family size and income.
To estimate your qualification, you can take the Cottage Grove Chapter 7 qualification calculator below that is specific to Cottage Grove.
Finally, the most recent Oregon median income levels is for cases filed on or after April 1, 2024, and can be found below.
| # of People | Annual Income |
|---|---|
| 1 | $71,243 |
| 2 | $86,378 |
| 3 | $103,758 |
| 4 | $120,252 |
| 5 | $130,152 |
| 6 | $140,052 |
| 7 | $149,952 |
| 8 | $159,852 |
| 9 | $169,752 |
If your income exceeds the median, you can move on to the second part of the means test to estimate qualification. The second part of the means test is to understand your actual expenses. You can check out our guide covering trying to qualify for Chapter 7 bankruptcy above the median.
Chapter 13 bankruptcy is known as a wage-earner bankruptcy. Chapter 13 bankruptcy is a voluntary reorganization of debt. In Chapter 13 bankruptcy, the individual has debt that they can no longer manage and often own assets that exceed state and/or federal relief. Folks file Chapter 13 bankruptcy often when they do not qualify for Chapter 7 bankruptcy.
Most individuals in Cottage Grove will qualify for Chapter 13 bankruptcy as long as they are below the debt limits.
Compared to Chapter 7, there is no liquidation in Chapter 13 Bankruptcy. Although, the discharge won’t be until around 3 to 5 years. The Chapter 13 bankruptcy will stay on your credit report for 7 years.
When looking for a bankruptcy attorney, we recommend that you look for these 5 attributes: Rate, Reliability, Referrals, Reviews, and Relevancy. You can check our guide to find a top bankruptcy attorney in Cottage Grove.
The estimated Chapter 7 bankruptcy lawyer fee in Cottage Grove is: $1170 - $1600.
The estimated Chapter 13 bankruptcy lawyer fee in Cottage Grove is: $3,200. The Chapter 13 attorney fee is often set across the district, meaning that all Chapter 13 bankruptcy attorneys in a district may charge around the same fee.
One of the most important things to do is to find a reputable bankruptcy attorney in Cottage Grove if you decide to hire one. This is legal advice related to finances that are going to affect your future. For example, making sure you are in the right bankruptcy chapter (Chapter 7 vs Chapter 13) could cost you thousands more and take you years longer.
As stated above, Cottage Grove has a population of 10465. In many cases, individuals in larger cities such as Portland or Salem would like a bankruptcy lawyer close by. In smaller cities, I have found that individuals have questions about whether the bankruptcy will show up in the newspaper or whether friends will hear about it. This is a valid question.
Regardless, you can check the Chapter 7 bankruptcy lawyers in or near Cottage Grove using the table below. You just need to input your zip code, and voila, you can choose which Chapter 7 bankruptcy lawyer you would like to speak to near or far away from Cottage Grove in a free bankruptcy lawyer consultation.
Filing a Chapter 13 bankruptcy in Cottage Grove may be a bit more intensive, so you may consider a Chapter 13 bankruptcy that is closer to you. That said, with the internet and the pandemic, many of the meetings are now online and you can generally submit your documentation online as well.
As you live in Cottage Grove, you are often able to use the Oregon bankruptcy exemptions to help you keep your belongings.
One of the biggest questions people have is whether they are able to keep their homes in bankruptcy. This is where bankruptcy exemptions come into play. As Cottage Grove has a home ownership % of 62.8% and an estimated estimated home value of $190748, you can understand that many people want to keep this asset. You can often keep your assets using bankruptcy exemptions.
Here are the Oregon bankruptcy exemptions. The exemptions are revised on different occasions, so you may wish to check the most current information on exemptions. Also, as a reference, Oregon is a place that allows you to use federal bankruptcy exemptions. You often have to choose which one to use, so a bankruptcy attorney can help you with that option.
The homestead exemption is often broken down by age and whether you are married.
Oregon specific homestead bankruptcy exemption text: “Or. Rev. Stat § 18.395. Real property, mobile home or houseboat you occupy or intend to occupy to $40,000 ($50,000 for joint owners); property cannot exceed 1 block in town or city or 160 acres elsewhere; sale proceeds exempt 1 year from sale, if you intend to purchase another home.” (Source)
The automobile bankruptcy exemption in Oregon is $3,000.
The jewelry bankruptcy exemption in Oregon is $1,800.
The tools of the trade bankruptcy exemption in Oregon is $5,000.
The wildcard bankruptcy exemption in Oregon is $400.
The personal property bankruptcy exemption in Oregon is $3,000.
Below is specific special handling of bankruptcy exemptions in Oregon.
Unemployment can cause both frustration and angst about options. The most recent statistic I found is that the Cottage Grove unemployment rate is 8.7%. There may be resources available to help. In addition to the unemployment rate, Cottage Grove has a disability rate of 22.6%. As such, if you are truly in need and don’t have income, there are resources that may be available that can help you.
Here are some legal aid resources that may be helpful to you in Cottage Grove.
The bankruptcy court and district may have free resources that are available to you. I have included the information below.
One of the most common alternatives to bankruptcy is debt settlement. A debt settlement firm would negotiate for a lower amount due on your debt in the case of financial hardship. The goal would be to reduce your debt in half. In this case, you would have a lower monthly payment.
If you are looking at debt settlement in Cottage Grove, you may want to consider a national debt settlement firm to a local one in Cottage Grove. For example, most of your creditors are probably national banks instead of local Cottage Grove banks. As such, you can potentially get lower fees by using a national firm. You should strongly consider the pros and cons and credit score impact before taking the plunge as Ascend only recommends 2 debt settlement firms nationwide that both offer free phone evaluations.
Chapter 7 bankruptcy and Chapter 13 bankruptcy in Cottage Grove can provide debt relief. That said, you may want to consider the cost of bankruptcy in Cottage Grove, the different bankruptcy chapters, reputable attorneys in Cottage Grove and alternatives to help you make the most informed decision.
You can also take our Chapter 7 vs Chapter calculator below to help you estimate the cost and qualification of Chapter 7 bankruptcy and Chapter 13 bankruptcy in Cottage Grove.
