Any person, and almost any partnership, corporation, or business trust may file a bankruptcy petition. Certain types of entities, such as banks and insurance companies, may not be eligible for bankruptcy protection, but almost all other entities who are not individuals can file under either Chapter 7, Chapter 11, or Chapter 12. A business that is not a partnership, corporation, or business trust, cannot file a separate bankruptcy petition on its own, but must be filed as an individual bankruptcy under the name(s) of the owner(s).

If the person or entity who owes the debts (the debtor) files the petition, it is called a voluntary petition. A voluntary petition can be filed under Chapter 7, 9, 11, 12, or 13 .

The people or entities that are owed money (the creditors) may also have the right to file a petition against a person or entity which owes them money, and is not paying. This is called an involuntary petition. There are certain restrictions upon the creditors ability to file an involuntary petition. In an involuntary case, the debtor is allowed to contest the petition and contend that it should not be in bankruptcy. The Court can impose penalties against the creditors who filed the case if the debtor proves that the involuntary petition should not have been filed. An involuntary petition cannot be filed against joint debtors, and can be filed only under Chapter 7 or Chapter 11 (11 USC §303).

Only a family farmer or family fisherman may file a Chapter 12 petition. In addition, there are certain debt limitations in a Chapter 12 case. See 11 USC §101(18) and (19A).

In accordance with §342(b) of the Bankruptcy Code, this notice: (1) Describes briefly the services available from credit counseling services; (2) Describes briefly the purposes, benefits and costs of the four types of bankruptcy proceedings you may commence; and (3) Informs you about bankruptcy crimes and notifies you that the Attorney General may examine all information you supply in connection with a bankruptcy case. You are cautioned that bankruptcy law is complicated and not easily described. Therefore, you should seek the advice of an attorney to learn of your rights and responsibilities under the law should you decide to file a petition with the court. If you need an attorney, the Oregon State Bar's Lawyer Referral Service number is 1-800-452-7636. Court employees are prohibited from giving you legal advice.

A. Services Available from Credit Counseling Agencies

With limited exceptions, §109(h) of the Bankruptcy Code requires that all individual debtors who file for bankruptcy relief on or after October 17, 2005 receive a briefing that outlines the available opportunities for credit counseling and provides assistance in performing a budget analysis. The briefing must be given within 180 days before the bankruptcy filing. The briefing may be provided individually or in a group (including briefings conducted by telephone or on the Internet), and must be provided by a nonprofit budget and credit counseling agency approved by the United States Trustee. For a list of approved agencies, see the U.S. Trustee's website at www.usdo j.gov/ust.

Services can include (1) budget counseling, (2) debt management services, (3) debt settlement, (4) credit education and correction services, (5) housing advising services, (6) financial education, and/or (7) income tax preparation.

In addition, after filing a bankruptcy case, an individual debtor generally must complete a financial management instructional course before he or she can receive a discharge. Also see the U.S.Trus tee's website for a list of approved financial management instructional courses.

B. The Four Chapters of the Bankruptcy Code Available to Individual Consumer Debtors

Chapter 7: Liquidation (See Court Fees List for filing fee)

1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a means test designed to determine whether the case should be permitted to proceed under Chapter 7. In addition, if your income is greater than the median income for your state of residence and family size, in some cases, creditors have a right to file a motion requesting that the court dismiss your case under §707(b) of the Code. It is up to the court to decide whether the case should be dismissed.

2. Under Chapter 7, you may claim certain property as exempt under governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors.

3. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated.

4. Even if you receive a general discharge , some particular debts are not dischargeable under the law. Therefore, you may still be responsible for most taxes and student loans; debts incurred to pay nondischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.

Chapter 11: Reorganization (See Court Fees List for filing fee)

Chapter 11 is primarily designed for the reorganization of a business, but is also available to individual debtors. Its provisions are quite complicated, and any decision by an individual to file a Chapter 11 petition should be reviewed with an attorney.

Chapter 12: Family Farmer or Fisherman (See Court Fees List for filing fee)

Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings and is similar to Chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.

Chapter 13 : Repayment of All or Part of the Debts of an Individual with Regular Income ( See Court Fees List for filing fee)

1. Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for Chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.

2. Under Chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect.

3. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term secured obligations.

C. Bankruptcy Crimes and Availability of Bankruptcy Papers to Law Enforcement Officials

A person who knowingly and fraudulently conceals assets, or makes a false oath or statement under penalty of perjury, either orally or in writing, in connection with a bankruptcy case is subject to a fine, imprisonment, or both. All information supplied by a debtor in connection with a bankruptcy case is subject to examination by the Attorney General acting through the Office of the United States Trustee, the Office of the United States Attorney, and other components and employees of the Department of Justice.

WARNING : Section 521(a)(1) of the Bankruptcy Code requires that you promptly file detailed information regarding your creditors, assets, liabilities, income, expenses and general financial condition. Your bankruptcy case may be dismissed if this information is not filed with the court within the time deadlines set by the Bankruptcy Code, the Bankruptcy Rules, and the local rules of the court.

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. See response to FAQ (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 may be collected to the bankruptcy trustee.

As a general rule, there is no statutory prohibition against an individual filing another bankruptcy at any time. However, the court could enter such an order (for example if you are found to be abusing the system by repeatedly filing cases solely for purposes of delay). Additionally, the Bankruptcy Code [11 USC §109(g)] does provide that you may have to wait 180 days (6 months) to refile if either: (a) your previous case was dismissed for willful failure to abide by orders of the court (possible examples could include the failure to pay filing fees, to file required documents, or to complete the first meeting of creditors), or (b) if your case was dismissed on your request after a creditor filed a motion for relief from the automatic stay. In addition, there are certain prohibitions against receiving another chapter 7 discharge in specific circumstances. See 11 USC §727(8) and (9).

Subsection (8) prohibits entry of a chapter 7 discharge in a case filed prior to 10/17/05 if you received a discharge in a chapter 7 or 11 case filed within six (6) years of the filing of the new case. For cases filed on or after 10/17/05 , the period between successive chapter 7 discharges is eight (8) years.

Subsection (9) prohibits entry of a chapter 7 discharge if you received a discharge in a chapter12 or 13 case commenced within six years of the chapter 7 filing unless payments under the plan totaled either 100% of allowed unsecured claims or at least 70% of the unsecured claims if the plan was proposed in good faith and was the debtor's best effort.

Moreover, under 11 USC §1328(f)(1) and (2), a discharge cannot be entered in a chapter 13 case filed on or after 10/17/05 if the debtor (1) has received a discharge in a chapter 7, 11, or 12 case filed within four years of the chapter 13 filing, or (2) has received a discharge in a chapter 13 case filed within 2 years of the new chapter 13 case. In a chapter 13 case filed prior to 10/17/05 , there is no statutory prohibition to receiving a discharge based upon prior bankruptcy filings.

For other things that should be considered before actually filing another bankruptcy petition, see Who Can Start a Bankruptcy? and What are the Consequences of Filing for Bankruptcy?

Only an individual may file a Chapter 13 petition. As with Chapter 12 cases, there are debt limitations in a Chapter 13 case. See 11 USC §109(e).

A Chapter 9 case is a rarely-filed case by a municipality seeking to adjust its debts.

For other things that should be considered before actually filing a bankruptcy petition, see (When may I file bankruptcy again?) and (What are the consequences of filing for bankruptcy?).

While it is possible for an individual to file a bankruptcy case "pro se", that is, without the assistance of an attorney, it may be difficult to do so successfully. Click here for some important general information about filing for bankruptcy without an attorney.

As noted in the general information, it is recommended that a person considering bankruptcy consult with a competent attorney prior to filing a case. For information about lawyer referral programs, contact the Oregon State Bar at (503) 684-3763 in the Portland metropolitan area or 1-800-452-7636 if calling from other areas.

NOTE: Any entity other than an individual (i.e., corporation, partnership, trust, LLC, LLP, conservatorship, guardianship, etc.) must be represented by an attorney.

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. In Portland, the Lewis & Clark Legal Clinic provides services of law school students under the supervision of an attorney to low income clients. Their office can be reached by calling 503-768-6500.

3. 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.

4. The Debtor-Creditor Section of the Oregon State Bar in cooperation with Legal Aid and the Lewis & Clark Legal Clinic 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 offices will receive individual help from their volunteer attorney after the class. Click here for further information on the Bankruptcy Clinic.