I. COURT LOCATIONS AND PHONE NUMBERS

1. The District of Oregon Bankruptcy Court has offices in the following two locations, and they are both open from 9:00 A.M. to 4:30 P.M. every Monday through Friday except for federal holidays:

PORTLAND OFFICE
1001 SW 5th Ave #700
Portland, OR 97204
All Access: From the 7th Floor
Phone Numbers:Main: (503) 326-1500

EUGENE OFFICE
405 E 8th Ave #2600
Eugene, OR 97401
All Access: From the 2nd Floor
Phone Numbers:Main: (541) 431-4000

Bankruptcy case and adversary proceeding files are public records and available for viewing in the Clerk's Office until 4:15 pm in either Portland or Eugene, depending on where the case was filed. If the debtor resides in Benton, Coos, Curry, Douglas, Jackson, Josephine, Klamath, Lake, Lane, Lincoln, Linn, Marion or Polk counties, filings must be made in the Eugene office. If the debtor's address is in any other county, filings must be made in the Portland office. NOTE: Eugene cases are designated by either a "6", "7", or "8" as the first digit of the five digit portion of the case number. Portland cases are designated by either a "3", "4", or "5" as the first digit of the five digit portion of the case number.

II. ELECTRONIC ACCESS TO CASE AND COURT INFORMATION

The U.S. Bankruptcy Court for the District of Oregon maintains two (2) systems for electronic access to information relating to Oregon bankruptcy cases filed since October 9, 1984, and adversary proceedings filed since August 1988. These systems are described below. You must try one of these systems before calling the court as there is a very good chance it will have your information. The systems are:

1. PACER (Public Access to Court Electronic Records) - Extensive access to case records via the Internet. See details immediately below.

2. VCIS (Voice Case Information System)- A free service using a touch-tone telephone that provides basic case information.

The court provides real-time access to electronic case records via PACER services over the internet. You may access PACER here. There is a slight fee charged for access to each page viewed or printed, but with a maximum fee per document. Please refer to the opening page of the court's PACER site for important information regarding the site. It also provides a valuable link to the court's free website containing other extensive and frequently updated general court information at: www.orb.uscourts.gov If you've ever had a PACER account, it remains active for your use. The access fees are charged to your account.

If you don't presently have an account, or have questions such as regarding fees or access to the federal courts' PACER services (including other court's PACER sites and/or the US Party/Case Index system), contact the PACER Service Center at 1-800-676-6856 or at www.pacer.gov.

VCIS is a free service that uses a touch-tone telephone. It provides basic case information. To connect, dial 1-866-222-8029. VCIS uses a computer-generated synthesized voice device to automatically read case information in the court's database such as the case number, chapter, date the case was filed, debtor's name (and, if applicable, names of principal adversaries), debtor's attorney's name, trustee's name, judge's name, date and location of the 341(a) meeting of creditors, any claims filing bar date, case status, and any discharge and/or closing dates of the case.

INSTRUCTIONS ON HOW TO USE THE VCIS SYSTEM

1. To connect, dial 1-866-222-8029.

2. You may either say "Oregon" or you may press pound [#], then "27" for Oregon.

Here are a few possibilities to consider:

1. The Oregon State Bar has a Lawyer Referral program which will direct you to an attorney who has agreed to provide limited consultation at reduced rates. The Oregon State Bar Lawyer Referral Program can be contacted by calling 503-684-3763 in the Portland metropolitan area or 1-800-452-7636 if calling from other areas.

2. Multnomah, Yamhill, Washington, Clackamas & Columbia Counties - If you are low income and live in Multnomah, Yamhill, Washington, Clackamas or Columbia Counties, you can call the legal aid office for your county and, if you meet the income and asset guidelines, they will schedule you for an appointment to meet with a volunteer lawyer immediately after you attend one of the Bankruptcy Clinic classes described below.

In Multnomah or Yamhill County: Call Multnomah County Legal Aid Service at (503) 224-4086.

In Washington, Clackamas or Columbia County: Call Oregon Legal Services (Hillsboro office) at (503)-648-7163.

3. The Debtor-Creditor Section of the Oregon State Bar in cooperation with Legal Aid has a Bankruptcy Clinic. Anyone who is thinking about filing a consumer chapter 7 can come to the class but only those low income people who have separately made an appointment through the Legal aid office will receive individual help from their volunteer attorney after the class. For further information on the Bankruptcy Clinic, click here.

Click here for the current list of Bankruptcy Court filing fees.

You must normally pay all of the required fees at the time you file a bankruptcy petition. Except as provided below, if the debtor is an individual and cannot pay the full amount at the time of filing, the filing fee and administrative fee may be paid in up to three installments in an individual chapter 7 or chapter 11 filing, but in a chapter 12 or 13 filing, any balance owing must be paid within 45 days of filing and before the plan can be confirmed. To pay fees in installments, a fully completed Individual Debtor's Application To Pay Filing Fee In Installments (LBF 110) must be filed with the petition. Please be aware that anyone filing a chapter 11 or a chapter 13 must pay the minimum payment required by LBF #110.

If an application for payment of fees in installments is approved, you may not pay an attorney or petition preparer any further amounts of money for services rendered until all of the filing fees are paid.

The court also has the discretion to waive the filing fee for an individual chapter 7 debtor if his or her income is less than 150% of the official poverty line (as defined by the federal government) applicable to a family of the size involved, and is unable to pay that fee in installments. If you feel that a fee waiver is warranted, you must file with your petition a fully completed Application to Have the Chapter 7 Filing Fee Waived (Official Form 103B. If the judge denies your application for a fee waiver, he or she will normally enter an order requiring the payment of the filing fee in installments. In that case, failure to make the installment payments will result in a dismissal of the bankruptcy case.

The District of Oregon Bankruptcy Court has two offices of the clerk. The specific location for filing bankruptcy petitions or other documents is determined by the county in which the debtor resides or has its principal place of business or principal assets. If the debtor resides in Benton, Coos, Curry, Douglas, Jackson, Josephine, Klamath, Lake, Lane, Lincoln, Linn, Marion or Polk counties, filings must be made in the Eugene office at 405 E 8th Ave #2600, Eugene, OR 97401. If the debtor’s address is in any other county, filings must be made in the Portland office at 1001 SW 5th Ave #700, Portland OR 97204. All documents relating to a case must be filed in the office where the case is pending. Filings may be made in person or by mail.

The Bankruptcy Court does not report to the credit reporting agencies. The Bankruptcy Court has no control over credit reporting agencies.

The bankruptcy petition, schedules and other documents are public record and are available at the Clerk's Office and online through PACER with an account (see www.pacer.gov for more information). Credit reporting agencies regularly collect information from the petitions filed, and report the information on their credit reporting services.

You can request your credit report at no charge from each of the three reporting bureaus by visiting www.annualcreditreport.com (however, you will have to pay to see your credit score).

The three credit reporting agencies are:

Equifax Information Services LLC
(800) 829-4577
www.equifax.com

TransUnion LLC
(800) 888-4213
www.transunion.com

Experian
(800) 311-4769
www.experian.com

If your credit report indicates that you have filed bankruptcy, but you have never filed bankruptcy in Oregon, you can request a document that states you have never filed a bankruptcy case in Oregon. This document is called a Certificate of Negative Filing. (You may want to contact the credit reporting agency first to determine if this is a document that they will accept from you.) To request a Certificate of Negative Filing, please mail a letter, with your full name and social security number, along with the certification fee of $11.00 and a self-addressed stamped envelope, to the Bankruptcy Court. If no record of a bankruptcy is found for you, the court will mail the Certificate of Negative Filing back to you.

There are a number of educational publications that the Federal Trade Commission has on its website (www.ftc.gov) to help consumers address credit and financial issues.

Upon filing the original petition with the Clerk’s Office, the court’s restraining order, called the “Automatic Stay”, immediately takes effect and prohibits virtually all creditors from taking any collection action against the debtor or the debtor’s property. Although the stay is automatic, creditors need to be advised of the stay. The court issues a notice to all creditors advising them of the filing of the bankruptcy, the case number, the automatic stay, the name of the trustee assigned to the case (if filed under chapter 7, 12, or 13), the date set for the meeting of creditors, the deadline (if any) set for filing objections to the discharge of the debtor and/or the dischargeability of specified debts, and whether and where to file claims. The exact information in the notice differs depending on the chapter under which the case is filed.

A meeting of creditors will usually be held within 20 to 40 days of filing unless the debtor lives in an outlying area, then it may be a little longer. The meetings set for Portland and Eugene will be held at the office of the U.S. Trustee. At the meeting the debtor is required to respond, under oath, to questions from the case trustee and to any questions that creditors may have relating to the financial condition of the debtor and the debtor’s assets. Attending this meeting is mandatory for the debtor but creditors need not attend.

In a chapter 7 case involving an individual debtor, the creditors generally have 60 days from the first date set for the meeting of creditors to object to the discharge of all the debtor’s debts and/or the dischargeability of a specific debt. If the deadline passes without any objections to the debtor’s discharge of all debts being filed, the court will issue the Discharge Order. If any objections to the dischargeability of specific debts are filed they will be heard by the court, but will not delay the granting of a discharge with respect to other debts. An objection to discharge or to the dischargeability of certain debts is considered a separate lawsuit (an adversary proceeding) within the bankruptcy and may result in a trial before the judge assigned to the case. Corporate and partnership chapter 7 debtors do not receive discharges. If there are no estate assets from which a dividend can be paid to the creditors, the trustee will prepare a report of no distribution and the case will be closed. If there are assets that are not exempt, funds will be available for distribution. The court will set claims deadlines and notify all creditors to file their proofs of claim. The trustee will proceed to collect the assets, liquidate them and distribute the proceeds to creditors. When the assets have been completely administered, the court will close the case.

In a chapter 13 case, creditors are given an opportunity to object to the plan. If no objection is filed by creditors or the trustee, the plan may be confirmed as filed. Once the plan is confirmed, the trustee will distribute the proceeds of the debtor’s plan payments to the creditors until the debtor completes the plan or the court dismisses or converts the case. Upon completion of the chapter 13 plan, the court will issue a Discharge Order, the trustee will prepare a Final Report and the case will be closed. If the debtor is unable to complete the plan through no fault of his/her own, and requests a “hardship discharge”, if certain requirements are met, a discharge may be granted.

In a chapter 12 case, the confirmation hearing must be concluded within 45 days of filing the plan. The court may consider dismissal of the case if a plan is not confirmed. Once the plan is confirmed, the trustee disburses the payments received from the debtor and makes sure the farming operation is running according to plan. Upon completion of the chapter 12 plan, the court will issue a Discharge Order, the trustee will prepare a Final Report and the case will be closed. If the debtor is unable to complete the plan through no fault of his/her own, and requests a “hardship discharge”, if certain requirements are met, a discharge may be granted.

In a chapter 11 case, the debtor will meet with the U.S. Trustee’s staff before the creditors’ meeting. At the meeting, the U.S. Trustee will go over the responsibilities and restrictions of the debtor-in-possession, explain the quarterly fees and monthly operating reports, and generally discuss the financial situation of the debtor and the scope of the anticipated plan of reorganization. Interested unsecured creditors are encouraged by the U.S. Trustee to form a Creditors’ Committee and to take an active part in moving the case along. A disclosure statement must be filed with the plan and approved by the court before votes for and against the plan can be solicited. After the estate has been fully administered, the court enters a final decree closing the case. A chapter 11 estate may be considered fully administered and closed before the payments required by the plan have been completed.

The information contained in your petition, schedules and statement of financial affairs is submitted under penalty of perjury. Therefore, you must be certain that it is correct when you sign these documents. If, however, you later discover that something is inaccurate, the documents may be corrected by the filing, typically well before the case is closed, of an amendment with the Clerk’s Office where the petition was filed.

Petition information: If only changing the debtor’s address, use local form LBF 101D. If changing any other information on the three page petition, mark the petition “Amended”, highlight what is being changed, completely fill out the petition, and add all required signatures (for example, debtor and any joint debtor). Copies of the amended document must be sent to the case trustee and the U.S. Trustee.  If debtor information on page one of the petition was changed, copies must also be sent to all creditors. The reason for this is the incorrect information was sent to the creditors when the notice of the meeting of creditors was mailed so they need to be informed if any of that information was incorrect or incomplete.

Schedules or Statement of Affairs: To change information contained in the schedules or Statement of Financial Affairs, the document must be labeled “Amended” and be accompanied by a signed declaration under penalty of perjury.

Schedules D, E, F, E/F, G or H: LBF 728 accompanied by a fee per the Court Fees List, must be submitted to amend Schedules D, E, F, E/F, G or H after notice to creditors has been sent out in the case. LBF 728 contains certain instructions which must be strictly followed in order for the amendment to be processed properly. For instance, if adding creditors to Schedule E/F, clearly mark the schedule “Amended”, put Add Creditors so it is clear exactly what you are doing, and then list only the creditors being added. A supplemental creditor mailing list showing only the creditors whose information is being changed by the amendment is required.

Service: Copies of all amendments must be sent to the United States Trustee and the case trustee. Some amendments (to Schedules D, E, F, E/F, G or H) must be served upon the creditors affected by the amendment as set out in LBF 728. A signed certificate of service showing to whom the amendment was mailed and the date of mailing is to be included.

The court uses digital recording equipment to electronically create a record of a court proceeding in the Portland and Eugene locations. For hearings outside of these locations, for example hearings held in Bend and Pendleton, a contract court reporter is employed to create a verbatim record of proceedings.

1. Digitally recorded proceedings:

a. Transcript of Hearing - complete local form LBF #335, Hearings Transcript Order Form. The transcriptionist will contact you to give you an estimate of the cost and to arrange for payment.

b. Copy of Hearing on CD - Complete local form LBF #335.5, Hearing CD Order Form, and submit the form, along with a check for the required deposit made payable to the “Clerk, US Bankruptcy Court” and a self-addressed, stamped envelope for the CD (which holds approximately 45-60 minutes of hearing time) to the appropriate Clerk’s office. The court will make a duplicate CD and send it to you in the envelope provided.

2. Court reporter recorded proceedings:

a. For any Eugene hearings prior to 1/1/09, contact the court at 541-431-4000 to obtain court reporter contact information.  Hearings after that date are digitally recorded.

b. For Medford hearings prior to 4/4/2010 and Klamath Falls hearings, contact Eileen Leddy at 541-479-7277.  Hearings after that date are digitally recorded.

c. For Bend and Pendleton hearings, call the courtroom deputy at 503-326-1500 to obtain court reporter contact information. Bend hearings held via telephone are digitally recorded.

A Dismissal Order ends the case. Upon dismissal the “automatic stay” ends and creditors may start to collect debts unless a discharge is entered before the dismissal and the discharge is not revoked by the court. An Order of Dismissal does not free the debtor from any debt. Often, a case is dismissed when the debtor fails to do something he/she must do: show up for the creditors’ meeting, pay the filing fees, answer the trustee’s questions honestly, produce books and records the trustee requests, file required documents, or when the dismissal is in the best interest of the creditors. The clerk will close the case upon dismissal.

If the case is a chapter 7 and the trustee has collected assets to be reduced to cash and distributed to the creditors, a notice is sent to the creditors to file a proof of claim. Depending upon the type of assets, it may take quite some time to reduce them all to cash. Ultimately, the total funds available for distribution may not exceed the amount of administrative expenses (i.e., trustee’s statutory fees, professional fees incurred in collecting and reducing the assets to cash) and priority claims (i.e., taxes, etc.) so there is nothing left to distribute to the unsecured creditors. In any event, distribution from the estate to creditors is usually not made until the case is almost ready to close.

In chapter 11, 12 and 13, payments are made pursuant to the confirmed plan which governs who gets paid, how much and when. For example the plan may dedicate the first few payments to bringing delinquent payments to secured creditors current before making any distributions to the unsecured creditors. Additionally it may take a few months to build up enough money to send a payment to unsecured creditors. Another reason that payments to creditors may be delayed or interrupted is if the debtor stops making payments for some reason. In that situation, either the debtor may be filing an amended plan, or the trustee will prepare a motion to dismiss the case unless the payments are brought current.

A creditor that continues to attempt to collect a debt after the bankruptcy is filed may be in violation of the automatic stay. You should immediately notify the creditor in writing that you have filed bankruptcy, and provide them with either the case number and filing date or a copy of the petition that shows it was filed. If the creditor still continues to try to collect, the debtor may be entitled to take legal action against the creditor to obtain a specific order from the court prohibiting the creditor from taking further collection action and, if the creditor is willfully violating the automatic stay, the court can award the debtor actual damages (including costs and attorney fees) and, in appropriate circumstances, punitive damages.  Any such legal action brought against the creditor will be complex and will normally require representation by a qualified bankruptcy attorney.

The “341(a) meeting” is sometimes called the “meeting of creditors” and gets its name from the Section of Title 11 of the United States Code where the requirements for the first meeting of creditors and equity security holders are found. Section 341 of the Bankruptcy Code requires every debtor to personally attend a meeting of creditors and to submit to an examination under oath. The meeting is held outside the presence of the judge. In Chapter 7, 12 and 13 cases, the trustee assigned by the United States Trustee conducts the hearing. In chapter 11 cases where the debtor remains in possession of all the assets and no trustee is immediately assigned, a representative of the Office of the U.S. Trustee conducts the hearing.

The case may be dismissed if the debtor fails to appear at, and complete, this meeting. It is usually scheduled between 21 and 40 days after the new petition is filed and is usually held at the Office of the U.S. Trustee which is located at 620 SW Main #213 in Portland and at 405 E 8th Ave #1100 in Eugene, but may be scheduled at other locations throughout the state to accommodate debtors from outside these metropolitan areas.

The hearing permits the trustee or representative of the U.S. Trustee’s Office to review the debtor’s petition and schedules with the debtor face-to-face. The debtor is required to answer questions under penalty of perjury concerning the debtor’s acts, conduct, property, liabilities, financial condition and any matter that may affect administration of the estate or the debtor’s right to discharge. This information enables the trustee or representative of the U.S. Trustee’s Office to understand the debtor’s circumstances and facilitates efficient administration of the case. Additionally, the trustee or representative of the U.S. Trustee’s Office will ask questions to ensure that the debtor understands the positive and negative aspects of filing for bankruptcy.

The hearing is referred to as the “meeting of creditors” because creditors are notified that they may attend and question the debtor about the location and disposition of assets and any other matter relevant to the administration of the case. However, creditors rarely attend these hearings and are not considered to have waived any of their rights by failing to appear. The hearing usually lasts only a few minutes and may be continued if the trustee or representative of the U.S. Trustee’s Office is not satisfied with the information provided by the debtor. If the debtor fails to appear and provide the information requested at the hearing, the trustee or representative of the U.S. Trustee’s Office may request that the bankruptcy case be dismissed or that the debtor be ordered by the court to cooperate or be held in contempt of court for willful failure to cooperate.

To view a video of a trustee conducting a 341(a) meeting of creditors, click here.

Debtors are entitled to protect their equity in certain property, known as "assets,” from becoming part of your bankruptcy estate, and will not be used to pay creditors through your bankruptcy case.

The types of exemptions and how much of this property is exempt are determined by federal law (the Bankruptcy Code) or state law.

Note that if the unsecured value of an asset exceeds the value of your exemption, then it can be sold by the trustee and only the exempt amount returned to you.

Additionally, if an item is otherwise exempt, it does not eliminate the interests of a secured creditor. For example, if you own a car or a house that was purchased with a loan from a bank or credit union and the debt is not paid off, your equity (market value less the balance owing) is exempt up to the amount allowed by law, but you will still have to continue to pay for the car or house or the creditor can repossess it.

Debtors filing in the District of Oregon may elect to use the exemptions provided by federal law or those provided by state law (but not both).  In other words, all of a debtor's claims of exemption must come entirely from either the state or federal list.

For more information, please read the section entitled "Property You Can Keep (Exemptions)" in the document below.

Helpful Information for Filing Without an Attorney
 

Copies of the Local Bankruptcy Rules for the District of Oregon can be downloaded from this website in PDF Format, or obtained from the Clerk’s office.

Filing An Adversary Proceeding Complaint

If it is determined from the information below that an adversary proceeding is appropriate, complaints are filed in the clerk’s office. Unless the complaint is electronically filed, each complaint must be submitted with a fully filled out Adversary Proceeding Coversheet Local Form B1040 (which is identical to Official Form 1040).

What is an Adversary Proceeding?

An adversary proceeding is the bankruptcy court’s version of a civil complaint. It is governed by Federal Rule of Bankruptcy Procedure (FRBP) Rule 7001 and is a proceeding to:

(1) Recover money or property. [Except for a proceeding (a) to compel the debtor to deliver property to the trustee; (b) to recover or reclaim property in the hands of a DIP or trustee under 11 USC §554 (abandonment) or §725 (disposition of property); (c) under FRBP 2017 (examination of debtor's transactions with debtor's attorney); and (d) under FRBP 6002 (accounting by prior custodian of property of the estate)].

(2) Determine the validity, priority, or extent of a lien or other interest in property. [Except for a proceeding under FRBP 4003 [liens impairing debtor's exemptions] which is also covered by Local Bankruptcy Rule (LBR) 4003-2 and requires the filing of Local Bankruptcy Form (LBF) 717, Notice of Motion for Avoidance of Lien Pursuant to 11 U.S.C. §522(f) in a Chapter Case, and LBF 717.15, Instructions].

(3) Obtain approval pursuant to 11 USC §363 for the sale of both the interest of the estate and of a co-owner (i.e., non-debtor) in property.

(4) Object to or revoke a discharge, except for motions objecting to discharge pursuant to 11 USC §§727(a)(8), 727(a)(9), or 1328(f) (See FRBP 4004(a) and 7001(4)).

(5) Revoke an order of confirmation of a chapter 11, chapter 12, or chapter 13 plan.

(6) Determine the dischargeability of a debt.

(7) Obtain an injunction or other equitable relief [NOTE: Also see LBR 7065].

(8) Subordinate any allowed claim or interest.[Except for when subordination is provided in a chapter 9, 11, 12, or 13 plan].

(9) Obtain a declaratory judgment relating to any of the foregoing in points 1 through 8.

(10) Determine a claim or cause of action removed pursuant to 28 USC §1452 [removal of claims related to bankruptcy cases].

EXAMPLES OF ACTIONS REQUIRING AN ADVERSARY PROCEEDING:

a. Proceedings brought to avoid transfers by the debtor under 11 USC §544 [trustee's power to avoid obligations incurred by the debtor], §545 [trustee's power to avoid the fixing of a statutory lien on property of the debtor], §547 [trustee's power to avoid preferential transfers], §548 [trustee's power to avoid fraudulent transfers and obligations], and §549 [trustee's power to avoid postpetition transaction].

b. FRBP Rules 5008 & 9025 proceedings on bonds.

c. FRBP 4004 denial of discharge based on §727 or §1328, except for motions objecting to discharge pursuant to 11 USC §§727(a)(8), 727(a)(9), or 1328(f) (See FRBP 4004(a) and 7001(4)).

d. 11 USC §§727, 1228 or 1328 revoke discharge.

e. 11 USC §523 dischargeability of particular debt.

f. 11 USC §§1144, 1230 and 1330 revoke an order of confirmation of a plan in chapters 11, 12 or 13.

g. 11 USC §510 to subordinate a claim or interest other than as part of a plan.

h. 11 USC §363 to sell interest of both debtor and of co-owner.

Adversary Proceedings are not any action relating to the exceptions listed above including (but not limited to) motions/requests/stipulations for relief from automatic stay per 11 USC §362 and FRBP 4001, objections to claims unless joined with a demand for relief of a kind covered by FRBP 7001. A debtor's motion to avoid a lien impairing exemptions pursuant to 11 USC §522 is not an adversary proceeding but a motion/stipulation for lien avoidance by anyone other than the debtor is an adversary proceeding per point (2) above.

While the information presented above is as accurate as possible as of the date of publication, it should not be cited or relied upon as legal authority. It is highly recommended that legal advice be obtained from a bankruptcy attorney or legal association. For filing requirements, please refer to the United States Bankruptcy Code (Title 11, United States Code), and the Local Rules for the United States Bankruptcy Court for the District of Oregon.

Unless for some reason a general discharge of debts is denied (see below ), the Court typically enters an order which grants a discharge to the person(s) named as the debtor(s). A discharge in bankruptcy eliminates a debtor's legal obligation to pay debts that are discharged. The granting of a discharge (1) is not a dismissal of the case, (2) does not determine how much money, if any, the trustee will pay to creditors, and (3) does not always automatically result in the closing of a case. All contested matters, some adversary proceedings, and appeals must be resolved, and the appointed trustee or debtor-in-possession must file a Final Report and Account and request entry of a Final Decree before the Clerk's Office will close the case.

Some individual debts are not dischargeable, and the dischargeability of others may be denied, depending on particular circumstances (see below).

The discharge is a permanent injunction which prohibits any attempt to collect from the debtor all debts that have been discharged, except for debts not discharged by the court. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor. There are also special rules that protect certain community property owned by the debtor's spouse, even if that spouse did not file a bankruptcy case. A creditor who violates this order can be held in contempt of court and required to pay damages and attorney fees to the debtor. However, even if a debt is discharged, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the collateral after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case.

Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. (If the case was begun under one chapter of the Bankruptcy Code and then converted to a different chapter, the discharge applies to the debts owed when the bankruptcy case was converted.)

In a Chapter 7 case, the discharge is typically entered within 75 days after the §341(a) meeting of creditors. In a Chapter 11 case, the discharge is deemed entered once the debtor' s Chapter 11 Plan has been confirmed (except in an individual Chapter 11 in which discharge is deferred until the debtor completes all plan payments). In Chapter 12 or 13 cases, the discharge is typically entered upon the request of the Trustee following the completion of the debtor's plan payments. Even if a debtor has the legal right to discharge a debt, the debtor can voluntarily repay the debt, formally reaffirm the debt, or redeem collateral which secures a debt.

Denial of Debtor's Discharge And Denial of the Dischargeability of a Particular Debt

A discharge can be denied by the court for either all debts (denial of debtor's discharge) or for one particular debt (denial of the dischargeability of a particular debt). For a discharge to be denied as to all debts, either the debtor must simply not be entitled to a discharge at all by law, or someone must file an Adversary Complaint (Bankruptcy Court's version of a civil lawsuit) with the court. To deny the dischargeability of a particular debt, either the debt must be non-dischargeable by law, or someone must file an Adversary Complaint with the court seeking to deny the dischargeability of that debt. The following discusses both the denial of debtor's discharge and the denial of the dischargeability of a particular debt.

Denial Of Debtor's Discharge

In the following circumstances, the debtor is not entitled by law to a discharge of any debts, and no party need file an Adversary Complaint seeking to deny the debtor a discharge:

1. The debtor is not an individual (in Chapter 7 cases only);

2. The debtor received a discharge in a Chapter 7 or 11 case filed within eight years prior to the filing of a new Chapter 7 case (six years if the new case was filed prior to 10/17/05), or received a discharge in a Chapter 12 or 13 case within six years prior to the filing of a new Chapter 7 case. See also FAQ When May I File Bankruptcy Again? If the debtor is not entitled to a discharge because of a discharge entered in a prior case, the Court will typically issue a Notice of Intent Not to Grant a Discharge;

3. The debtor has filed, and the Court has approved, a waiver of discharge;

4. The Chapter 11 Plan, or the order confirming the Chapter 11 plan, provides that the debtor is not entitled to a discharge; and/or

5. The Chapter 11 Plan is a liquidating plan, and the debtor would be denied a discharge under 11 U.S.C. §727 had the case been filed under Chapter 7 (for non-individual Chapter 11 debtors only).

Under certain circumstances, the debtor's right to a general discharge can be denied by the Judge. This usually results from some major misconduct on the part of the debtor. In order for a discharge to be denied for any of these reasons, a party in interest (e.g., Trustee or creditor) must file an Adversary Complaint objecting to discharge within sixty days following the first date set for the §341(a) meeting of creditors. The most common examples are as follows:

1. The debtor, with intent to hinder, delay, or defraud a creditor or an officer of the estate, has transferred, removed, destroyed, mutilated, or concealed: (a) property of the debtor within one year prior to the filing of the bankruptcy petition and/or (b) property of the estate after the date of filing of the bankruptcy petition;

2. The debtor has concealed, destroyed, mutilated, falsified, or failed to keep or preserve books and records about the debtor's financial condition and/or business transactions;

3. The debtor has failed to satisfactorily explain a loss of assets;

4. The debtor knowing and fraudulently (a) made a false oath or account, (b) presented or used a false claim, (c) gave money or property to a third party for debtor's advantage, or (d) failed to turn over books and records; and/or

5. The debtor has refused to (a) obey any lawful order of the Court other than an order to respond to a material question or to testify, (b) respond to a material question approved by the Court, or to testify, notwithstanding a claim of self-incrimination, after immunity has been granted, or (c) respond to a material question approved by the Court, or to testify, on a ground other than self-incrimination.

Denial of the Dischargeability of a Particular Debt

As noted above, most debts are dischargeable in bankruptcy. The Bankruptcy Code, however, states that certain individual debts are not dischargeable, and that the creditor does not need to take any Court action to have such a debt declared non-dischargeable. The most common examples of such debts are:

1. Debts for most taxes;

2. Debts for domestic support obligations or those arising out of a divorce decree or separation agreement (except that non-support marital debt can be discharged in Chapter 13);

3. Debts for most student loans;

4. Debts for most fines, penalties, forfeitures, or criminal restitution;

5. Debts for personal injury or death caused by the debtor's operation of a motor vehicle, vessel, or aircraft while intoxicated;

6. Some debts which were not properly listed on the bankruptcy petition and schedules;

7. Debts for which a Reaffirmation Agreement has been approved;

8. Debts which could have been listed in a prior bankruptcy case;

9. Debts neither listed nor scheduled in time to allow the creditor to file a Proof of Claim;

10. Post-bankruptcy condominium or cooperative owners' association fees; and

11. Debts incurred to pay non-dischargeable state and/or federal tax debt.

The dischargeability of other types of individual debts may be denied if the creditor files, within sixty days after the first date set for the §341(a) meeting of creditors, an Adversary Complaint to deny the dischargeability of the debt. If such a complaint is timely filed, the Judge will ultimately rule as to whether or not the debt will be discharged. If a complaint is not timely filed, the debt will be considered discharged. Such "potentially non-dischargeable" debts include:

1. Debts incurred by fraud, false pretenses, or materially false statements regarding financial condition;

2. Debts incurred as a result of fraud or defalcation while acting in a fiduciary capacity, or for embezzlement or larceny; and

3. Debts incurred for willful and malicious injury by the debtor to another entity or property of another entity (except that such debts can be discharged in Chapter 13).

NOTE: The debtor may receive a discharge even if any complaint to deny the dischargeability of a single debt is still pending. The debt in question will not actually be discharged until the Judge rules on the objection.

CAUTION: These lists include many examples of non-dischargeable debts, but 11 U.S.C. §523 and 11 U.S.C. §1328 should be reviewed for complete lists.

Hardship Discharge

If an individual debtor in a Chapter 11, 12, or 13 case is not able to maintain plan payments to the applicable case trustee, it is possible to file a motion for a "hardship" discharge so that the case can be completed. As a practical matter, the relief obtained by the debtor is quite similar to that obtained by converting the case to one under Chapter 7 in that the debts which are not dischargeable in Chapter 7 are not discharged if the Court approves a hardship discharge in the Chapter 11, 12, or 13 case.

For an individual Chapter 11, 12, or 13 debtor to obtain a hardship discharge, such debtor must show that (1) the amount paid to creditors pursuant to the confirmed Chapter 11, 12, or 13 Plan is at least as much as the creditors would have received had the estate been liquidated as of the effective date of the Plan, and (2) modification of the Plan under §1127, §1229, or §1329 is not practicable. In addition, in a Chapter 12 or 13 case, the debtor must show that the failure to complete plan payments is due to circumstances for which the debtor should not justly be held accountable.

Motions seeking a hardship discharge must be filed using LBF #1378.

The trustee in a bankruptcy case is the representative of the estate.

In chapter 12 or 13 cases, the appointed trustee receives the payments from the debtor and disburses those funds to the debtor’s creditors according to the debtor’s plan which has been approved by the court.

In a chapter 7 case, the appointed trustee examines the debtor at the §(341)a Meeting of Creditors in an effort to locate and take charge of the debtor’s nonexempt assets, if there are any. The trustee will then take whatever steps are necessary to reduce those assets to cash. Since there generally is not enough money to pay all the creditors in full, the trustee, under the supervision of the office of the US Trustee, disburses the funds according to the priorities set out in 11 USC §507.

To be eligible to serve as a trustee, the individual or corporation must be competent to perform the duties of trustee and, in chapter 7, 12, or 13, must reside or have an office in the judicial district or adjacent to the district in which the case is pending. The trustee must also maintain an insurance bond which guarantees faithful performance of the trustee’s official duties.

Promptly after a case is filed with the court, the United States Trustee appoints a disinterested person who is a member of the panel of trustees established pursuant to 28 USC §586.

The compensation of a trustee is set by statute [11 USC § 326].

The trustee's name and address is printed on the first notice the court sends out, the Notice of the 341(a) Meeting of Creditors. That information is also available from the following sources:

1. VCIS (Voice Case Information Service) - an automated information service available 24 hours a day from any touch-tone telephone by calling 866-222-8029. You can obtain case information following the instructions given by speaking or by using the numbers on the keypad of your telephone. You may either say "Oregon" or you may press pound [#], then "27" for Oregon.

2. PACER (Public Access to Court Electronic Records) - Access to a mirror image of the court's database from your personal computer which is available 24 hours a day via the internet at https://ecf.orb.uscourts.gov. You must sign up for this service and there is a small fee. For more information call the PACER Service Center at 1-800-676-6856 or visit their website at www.pacer.gov.

3. Computer Terminals in the lobby of each office of the Clerk.

4. By calling the court and speaking to the operator during the court's office hours. For the Portland office call (503) 326-1500, and for the Eugene office call (541) 431-4000, and then press "O" for the operator.

In order for a party to continue a proceeding against the debtor or a co-debtor that has been stayed because of the filing of a bankruptcy, (s)he must file with the Bankruptcy Court a Motion for Relief from the Automatic Stay, or a Motion for Relief from the Co-Debtor Stay . If the parties are in agreement, a Stipulated Order concerning the automatic stay using LBF #720.90 may be filed.

A Motion for Relief from the Automatic Stay or a Motion for Relief from the Co-Debtor Stay is commenced by the filing of a motion. This motion cannot be combined with any other motion or request for alternative relief. Procedures and general requirements for filing one of these motions are found in the Local Bankruptcy Rules (LBR 4001-1) and LBF #720.50 (General Relief From Stay Procedures). For Chapter 7 and 13 motions for relief from stay, and/or for Chapter 13 motions for relief from co-debtor stay, draft a Motion For Relief From Debtor/Co-Debtor Stay using LBF #720.80 and attach Notice of Motion using LBF #720. For Chapter 11 or 12 motions for relief from stay, draft a custom motion and attach the Notice of Motion using LBF #1124. For Chapter 12 motions for relief from co-debtor stay, draft a custom motion, and attach the Notice of Motion using LBF #1220 and the Notice of Hearing using LBF #1220.5. Orders pertaining to relief from stay are filed with the Court using LBF#720.90.

The filing fee for a Motion for Relief from the Automatic Stay is found on the Court Fees List.

In Chapter 7 cases, when a party has a security interest in property in which the debtor has no equity and if the debtor does not object to the release of the property, the trustee may grant non-judicial relief from stay upon the presentation of the appropriate documentation. See LBF #715 and LBF #750 for more specific information. There is no fee for Non-Judicial Relief From Stay.

Admission to practice - The Bankruptcy Court does not have its own bar. To practice in the Bankruptcy Court you need to be admitted to the federal bar of the United States District Court for the District of Oregon pursuant to District Court Local Rule 83. Contact the United States District Court at 503-326-8061 OR 503-326-8021 for forms and requirements.

Appear pro hac vice - An attorney who neither resides nor maintains an office in the District of Oregon can request to participate in a case by submitting an application on a fully completed Local Bankruptcy Form LBF #120. There is no admission fee charged for filing such an application in the Oregon Bankruptcy Court.

The standard certificate of service states:

I certify that on (insert date) copies of (insert name of documents you are serving) were mailed to: * (list names and addresses of parties on whom the documents are being served and be sure to include the trustee, and U.S. Trustee).

_______________________________ Signature of person doing the mailing

*Note: in this space you may state: “the parties whose names and addresses are listed on the attached.” and attach a copy of the mailing list you used.

Mailing list: A mailing list which shows the names and addresses of all creditors and interested parties in the case is available from the clerk’s office upon request. It is formatted so that it can be copied onto labels.

Depending on a debtor's financial condition and reasons for filing, the consequences of filing for bankruptcy protection may outweigh the benefits. The timing of the filing may be very important, and those considering bankruptcy should be aware of the following:

1. Filing for bankruptcy protection is not free.  How much are the court fees to file a bankruptcy?

2. Not all debts are dischargeable. For example, most domestic support obligations, most tax debts, and most student loan debts are not dischargeable. See response to FAQ (What is a bankruptcy discharge and what is the difference between denial of discharge and denial of the dischargeability of an individual debt?)

3. Within 14 days of the filing of a bankruptcy petition, schedules of the debtor's assets and liabilities must be filed with the Court. Failure to timely file the appropriate schedules will result in a dismissal of the bankruptcy case, and may bar the debtor from filing again for 180 days (6 months).

4. The Bankruptcy Code imposes time limitations on successive discharges as follows:

A. If a Chapter 7 or 11 discharge is entered by the Court, the debtor is prohibited from being granted another discharge in a later-filed Chapter 7 case (filed on or after 10/17/05) filed within eight years of the filing of the first case.

B. If a Chapter 7 or 11 discharge is entered by the Court, the debtor is prohibited from being granted another discharge in a later-filed Chapter 7 case (filed prior to 10/17/05) filed within six years of the filing of the first case.

C. If a Chapter 7, 11, or 12 discharge is entered by the Court, the debtor is prohibited from being granted another discharge in a later-filed Chapter 13 case (filed on or after 10/17/05) filed within four years of the filing of the first case.

D. If a Chapter 13 discharge is entered by the Court, the debtor is prohibited from being granted a discharge in a later-filed Chapter 13 case (filed on or after 10/17/05) filed within two years of the filing of the first case.

E. If a Chapter 12 or 13 discharge is entered by the Court, the debtor is prohibited from being granted a discharge in a later-filed Chapter 7 case filed within six years of the filing of the first case, unless (a) the debtor paid 100% of allowed unsecured claims in the Chapter 12 or 13 case, or (b) the debtor paid at least 70% of the allowed unsecured claims in the Chapter 12 or 13 case, the plan was proposed in good faith, and was the debtor's best effort.

5. Submission of fraudulent information, or commission of certain acts by the debtor can also be grounds for the denial of discharge of an individual debt, or for the denial of the discharge of all debts, and can also give rise to criminal charges. See response to FAQ(What is a bankruptcy discharge and what is the difference between denial of discharge and denial of the dischargeability of an individual debt?).

6. In some instances, transfers of property and/or payments made to (1) general creditors within ninety days prior to the filing of a bankruptcy petition, and/or (2) relatives within one year prior to the filing of a bankruptcy petition, are subject to being recovered by the bankruptcy trustee.

7. If the debtor is seeking to discharge utility bills from a utility company currently providing service to the debtor, the utility company may terminate services if the debtor does not pay a reasonable security deposit or provide other adequate assurance of payment within 20 days of the filing of the bankruptcy petition.

8. Depending on the timing of the filing of the bankruptcy petition, and what chapter of bankruptcy is filed, the debtor can be required to turn over state and federal tax refunds to the bankruptcy trustee.

A deficient pleading is one that is incomplete or incorrectly done in some way. The notice you received should tell you specifically what needs to be done to correct the document so that it can be filed and also gives the deadline for filing. When you make the corrections, you will need to attach a copy of the “deficiency” notice to the documents and resubmit them for filing before the filing deadline.

For various reasons a meeting of creditors may occasionally be rescheduled. If so, it may be rescheduled in the hearing room with notice only to those present, or another notice may go out to some or all the creditors notifying them of the new date. The notice will usually say the meeting is being reset or rescheduled. Creditors may, but do not need to, attend the meeting. Debtors must attend a meeting of creditors and under oath respond to the questions put to them by the trustee or creditors. The debtor must attend any reset or rescheduled meeting unless the trustee clearly states that the debtor’s presence is no longer needed.

A meeting of creditors will usually be held within 20 to 40 days of filing, unless the debtor lives in an outlying area, in which case it may be a little longer. The meetings set for Portland and Eugene will be held at the office of the U.S. Trustee. At the meeting the debtor is required to respond, under oath, to questions from the case trustee and to any questions that creditors may have relating to the financial condition of the debtor and the debtor’s assets. Attending this meeting is mandatory for the debtor but creditors need not attend.

Redemption allows an individual debtor (not a partnership or a corporation) to keep tangible, personal property intended primarily for personal, family, or household use by paying the holder of a lien on the property the amount of the allowed secured claim on the property, which typically means the replacement value of the property (the price a retail merchant would charge for property of such kind, considering the age and condition of the property at the time the value is determined) without deduction for costs of sale or marketing. Otherwise, in order to retain the property, the debtor would have to pay the entire amount of the secured creditor’s debt, or enter into a reaffirmation agreement and become legally obligated on the debt again. The property redeemed must be claimed as exempt or abandoned by the trustee.

With redemption, a debtor may be able to, depending on the replacement value of the property, get liens released on personal household possessions for much less than the underlying debt on those secured possessions.

Redemption must be made in one lump sum payment to the creditor. If the debtor and the creditor agree to the redemption, a stipulated order of redemption is required. If the redemption is opposed, a motion for redemption must be filed using LBF #717.20 within 45 days following the first date set for the meeting of creditors.

See LBF #717.10 for procedures.

As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 which became effective on October 17, 2005, a "means test" was instituted to determine whether or not a debtor is entitled to a Chapter 7 discharge, or whether such debtor must convert the case to one under another chapter of the Bankruptcy Code. The basic purpose of the means test is to compare monthly income and expenses to determine whether or not a Chapter 7 discharge would constitute an "abuse" of the provisions related to Chapter 7 in the Bankruptcy Code.

Official Form 122A-1, Chapter 7 Statement of Your Current Monthly Income, requests information regarding your gross monthly income for six months prior to the filing of your bankruptcy case.  However, some types of income (social security benefits, etc.) are not included for the means test calculation.  Generally, if your average gross monthly income is below the median income in Oregon for your family size, or if your debts are not primarily consumer debts, your case will not be presumed to be an abuse.  Even if your case is not a presumed abuse, your case could be dismissed if the Court finds that it was filed in bad faith, or if your financial situation demonstrates abuse.

If your income is above the median for your family size and your debts are primarily consumer debts, you will need to complete Official Form 122A-2, Chapter 7 Means Test Calculation.  Allowable expenses are primarily determined by IRS guidelines as opposed to actual spending.  Your case may be presumed to be an abuse if you have a specified amount of income left over after expenses are deducted.

You may still be entitled to a Chapter 7 discharge even if your case is presumed to be an abuse, particularly if the figures in the "means test" form do not accurately represent your current circumstances (e.g., you lost your job or have a lower paying job).  If a presumption of abuse exists, some party (usually the U.S. Trustee or a creditor) may file a motion seeking a dismissal of your case.  If a motion is filed, and you are unable to rebut the presumption of abuse, the Court generally will enter an order allowing you a certain amount of time to convert your case to Chapter 13, or the case will be dismissed.

If your debts are not primarily consumer debts or you are exempt from the means test due to qualifying military service, you will need to complete Official Form 122A-1Supp, Statement of Exemption from Presumption of Abuse Under §707(b)(2).