Oregon’s Laws on Bankruptcy Credit Counseling Requirements

In Oregon, individuals considering filing for bankruptcy must adhere to specific credit counseling requirements as mandated by federal bankruptcy law. These requirements are designed to ensure that debtors are adequately informed of their financial situation and have explored all potential alternatives to bankruptcy before proceeding.

Under the U.S. Bankruptcy Code, anyone filing for Chapter 7 or Chapter 13 bankruptcy must complete a credit counseling session with an approved credit counseling agency. This session must occur within six months before filing the bankruptcy petition. It is crucial for debtors to obtain a certificate of completion from the counseling agency, as this document must be filed with the bankruptcy court.

Credit counseling sessions are typically offered in various formats, including in-person meetings, over the phone, or via online platforms. The counseling agency provides essential information about budgeting, debt management, and alternative debt relief options. The goal is to help individuals understand their financial situation and explore potential ways to address their debts without resorting to bankruptcy.

In Oregon, approved agencies must meet the standards set by the U.S. Trustee Program. A simple online search or a visit to the U.S. Trustee’s website can help debtors find a list of certified credit counseling services available in the state. Choosing an agency that suits one's needs can enhance the experience and provide valuable insights into managing finances better.

It is also important to note that individuals who have received a certificate of credit counseling within six months prior to filing their bankruptcy may not need to undergo the counseling again. However, there are exceptions for individuals facing emergencies or who are unable to access counseling services under certain circumstances. In such cases, it is advisable to consult with a bankruptcy attorney to clarify the requirements and possible exemptions.

Once the credit counseling session is completed, and the debtor files for bankruptcy, the court may require an additional course called debtor education. This education course typically focuses on budgeting, money management, and rebuilding credit, providing essential tools for individuals to rebuild their financial health after bankruptcy.

To summarize, Oregon has specific laws regarding bankruptcy credit counseling requirements that align with federal regulations. Debtors in Oregon must complete a credit counseling course before filing for bankruptcy and must file the certificate of completion with the court. By understanding these requirements and taking advantage of available resources, individuals can navigate their bankruptcy journey more effectively and work toward achieving financial stability.