Bankruptcy Laws have been in existence for a few centuries. These laws now protect both the creditors as well as the debtors and are more debtor friendly unlike the earlier times.

Bankruptcy laws are federal laws in the US which allow a debtor to cancel or reduce a debt and make a fresh start to life again without the fear of any harassment from his creditors. Similarly you are governed by Oregon Bankruptcy laws if you are a resident of Oregon State. You need not have any specific amount of debt for filing a bankruptcy.

The two most common types of personal bankruptcy laws are Chapter7 and Chapter13. Any competent Oregon Bankruptcy attorney can help you decide which is right in your case. The entire process takes about four months from the date of filing the petition. During this period the court grants you an automatic stay which prohibits any harassment or any legal action from your creditors.

Under Chapter7, an individual gets to keep his property or keep the proceeds from selling the property with certain conditions which your lawyer can help you with. Further, he must meet the federal requirement of a means test which stipulates a maximum level of income for a household comprising an individual or more people.

For eligibility under Chapter13, an individual person must have a regular income and should be ready to repay his debts over a period of three to five years.