Find Bankruptcy Lawyers Near You in Hillsboro, OR

The cost of a bankruptcy case in Oregon includes both court filing fees and attorney fees. For a Chapter 7 case, the filing fee is $338, and attorney fees in Hillsboro generally range from $1,200 to $2,500. For a Chapter 13 case, the filing fee is $313, and attorney fees typically fall between $3,500 and $6,000 due to the longer repayment plan and additional court oversight. Many lawyers offer payment plans that allow you to pay the fee in installments before filing, and some provide flat-fee arrangements that cover all work through the discharge.

If you cannot afford an attorney, you may qualify for pro bono legal services through the Oregon State Bar Modest Means Program or Legal Aid Services of Oregon, though these programs have income limits. You can also request to pay the filing fee in installments or apply for a fee waiver if your income is below 150 percent of the federal poverty guidelines. This information is general and not legal advice; you should consult with a qualified bankruptcy lawyer in Hillsboro to discuss your specific financial situation and fee arrangements.

Bankruptcy law provides a legal pathway for individuals and businesses in Hillsboro, Oregon, to address overwhelming debt and obtain a financial fresh start. The three primary chapters available under federal bankruptcy law are Chapter 7, Chapter 13, and Chapter 11. Chapter 7, often called liquidation bankruptcy, is designed for individuals or businesses with limited income who cannot repay their debts. In a Chapter 7 case, a trustee sells non-exempt assets to pay creditors, and most unsecured debts are discharged within three to six months. Chapter 13, known as reorganization bankruptcy, is for individuals with regular income who can commit to a three-to-five-year repayment plan to catch up on secured debts like mortgages or car loans while keeping their property. Chapter 11 is typically used by businesses or high-income individuals to reorganize debts and operations, though it is less common for consumer cases in Hillsboro. Choosing the right chapter depends on your income, assets, debt type, and financial goals, and a local lawyer can evaluate your specific situation to determine which path aligns with Oregon law.

Oregon has its own set of bankruptcy exemptions that residents can use instead of the federal exemptions, and in most cases, the state exemptions are more generous for protecting your property. Under Oregon Revised Statutes sections 18.300 through 18.470, you can exempt up to $40,000 of equity in your primary residence if you are single, or $50,000 if you are married and filing jointly, provided the property is your homestead. For vehicles, Oregon allows an exemption of up to $3,000 in equity for one motor vehicle, or up to $10,000 if the vehicle is equipped for a disabled individual. The state also offers a wildcard exemption of up to $400 in any personal property, plus up to $10,000 of unused homestead exemption amount that can be applied to other assets. Other notable exemptions include $1,250 for household goods and furnishings, $1,800 for books and musical instruments, and $7,500 for tools of the trade used for work. Oregon does not allow you to choose between state and federal exemptions; you must use the Oregon state exemptions unless you have lived in the state for less than two years, in which case you may use the exemptions of your prior state. These exemption amounts are adjusted periodically for inflation, so it is important to verify current figures with a local attorney.

The means test is a critical calculation that determines whether you qualify for Chapter 7 bankruptcy. This test compares your current monthly income, averaged over the six months before filing, to the median income for a household of your size in Oregon. As of 2025, the median annual income for a single-person household in Oregon is approximately $62,000, for a two-person household about $78,000, for a three-person household around $92,000, and for a four-person household roughly $110,000. If your income is below the median, you automatically pass the means test and qualify for Chapter 7. If your income exceeds the median, you must complete a more detailed calculation of your disposable income after deducting allowed living expenses under IRS standards. If your disposable income over five years is less than $8,175, you may still qualify for Chapter 7. If it is between $8,175 and $13,650, the amount is compared to 25 percent of your non-priority unsecured debt. If your disposable income exceeds $13,650, you generally cannot file Chapter 7 and must use Chapter 13 instead. The means test form is complex and requires careful documentation of income and expenses, which is why most filers in Hillsboro work with a lawyer to ensure accuracy.

When you file a bankruptcy petition in the U.S. Bankruptcy Court for the District of Oregon, an automatic stay goes into effect immediately, stopping all collection activities including phone calls from creditors, wage garnishments, foreclosure proceedings, repossession efforts, and lawsuits. This stay provides immediate relief and gives you breathing room to work with your lawyer on the case. For a Chapter 7 case, the timeline from filing to discharge is typically 90 to 120 days. You must complete two mandatory courses: a credit counseling course from an approved agency within 180 days before filing, and a debtor education course after filing but before your debts are discharged. The credit counseling certificate must be included with your petition, and the debtor education certificate must be filed with the court to receive your discharge. In a Chapter 13 case, the timeline is longer because you must complete a three-to-five-year repayment plan before the court issues a discharge. During the plan, you make monthly payments to a trustee, who distributes the funds to your creditors. The bankruptcy court in Portland handles cases for Hillsboro residents, and you may need to attend a meeting of creditors, also called a 341 meeting, which is typically held by video conference or in person.

The costs of filing bankruptcy in Oregon include court filing fees and attorney fees. As of 2025, the filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, though these amounts are set by the federal judiciary and may change. Attorney fees for a Chapter 7 case in Hillsboro generally range from $1,200 to $2,500, depending on the complexity of your assets and debts. For a Chapter 13 case, attorney fees are higher, typically between $3,500 and $6,000, because the case involves a multi-year repayment plan and more court oversight. Many lawyers offer payment plans that allow you to pay the fee in installments before filing. Some attorneys also offer flat-fee structures that cover all work through the discharge. If you cannot afford an attorney, you may qualify for pro bono legal services through organizations like the Oregon State Bar’s Modest Means Program or Legal Aid Services of Oregon, though these programs have income limits and may not cover all bankruptcy cases. You can also request to pay the filing fee in installments or apply for a fee waiver if your income is below 150 percent of the federal poverty guidelines. It is important to note that these costs are general estimates, and you should discuss fees directly with a lawyer before hiring.

Life after bankruptcy involves both challenges and opportunities. A Chapter 7 discharge stays on your credit report for 10 years from the filing date, while a Chapter 13 discharge remains for 7 years. During this time, you can begin rebuilding your credit by obtaining a secured credit card, making small purchases and paying the balance in full each month, and ensuring all post-bankruptcy bills are paid on time. Many lenders are willing to work with individuals who have a discharged bankruptcy, especially after two to three years, and you may qualify for an FHA mortgage as soon as two years after a Chapter 7 discharge. However, not all debts are dischargeable in bankruptcy. Student loans can only be discharged if you prove undue hardship through an adversary proceeding, which is difficult to win. Most tax debts from recent years, especially income taxes less than three years old or where you filed a fraudulent return, are not dischargeable. Child support, alimony, and debts for personal injury caused by driving under the influence also survive bankruptcy. Additionally, if you file Chapter 7, you may need to reaffirm secured debts like car loans or mortgages if you want to keep the property, which means you agree to remain personally liable. A local bankruptcy lawyer can help you understand which debts will be eliminated and which will remain, and can guide you through the post-bankruptcy financial planning process.