Oregon Laws and Legal Materials

This outline describes Oregon's legal framework and, in more depth, debt management, bankruptcy, business entity formation, and estate planning. All information herein is accurate as of 2024 and pertains only to Oregon state laws and federal regulations.

Debt Consolidation & Settlement

In Oregon, the major options for dealing with financial obligations are debt consolidation and debt settlement:

• Debt consolidation rolls over debts into one, hopefully, more manageable, monthly payment.
• Debt settlement seeks to negotiate with creditors to reduce the total balance of debts owed by a consumer.

Oregon law regulates the activities of debt consolidation service providers to protect consumers against fraudulent practices, particularly through ORS Chapter 697.

Statute of Limitations on Debt in Oregon

Oregon's statute of limitations for collecting debts is determined under ORS 12.080:

• For written contracts: 6 years from the date of the last activity on the account.
• The statute of limitations designates the time period in which a creditor is allowed to pursue debt collection through the legal system.

Additional information on debt consolidation

Further details on debt settlement

Additional legal resources for consumers

• Oregon State Debt Collection Laws
• Payday loan regulations in Oregon
• Oregon bankruptcy laws

Federal Bankruptcy Laws in Oregon

Federal bankruptcy laws are codified in Title 11 of the United States Code and provide relief to debtors who cannot pay their debts. The United States Bankruptcy Court for the District of Oregon is responsible for handling bankruptcy cases in the state.

The primary objectives of bankruptcy law:

1. Providing the debtor with a "fresh start" by discharging debts.
2. Allowing for the equitable distribution of property to creditors.

The most common Bankruptcy Code Chapters in Oregon are:

• Chapter 7: Liquidation Bankruptcy
• Chapter 13: Adjustment of debts for individuals with regular income
• Chapter 11: Reorganization, primarily used by businesses

The general process for filing bankruptcy in Oregon includes:

1. Filing a petition with the U.S. Bankruptcy Court for the District of Oregon.
2. Submitting detailed financial statements.
3. Notifying creditors through the court clerk.
4. Automatic stay of collection activity.
5. Liquidation or reorganization of assets, depending on the chapter filed.

• Further clarification on Oregon bankruptcy procedure

Oregon Department of Justice

The Oregon Department of Justice, led by the Attorney General, handles consumer protection and legal issues in the state.

For more information, visit the Official Website of the Oregon Department of Justice.

Oregon Incorporation

Business incorporation in Oregon requires meeting state-imposed requirements. It typically includes:

• Registration with the Secretary of State of Oregon
• Preparation of internal corporate governance documents
• Issuance of stocks or shares (if applicable)

Oregon Company Formation Costs

As of 2024, the fees charged by the Oregon Secretary of State are as follows:

• Reservation of a Business Name: $100 (good for 120 days)
• Filing Articles of Incorporation:
  • $100 for domestic business corporations
  • $50 for domestic nonprofit corporations

Business Licensing Requirements

Oregon does not require a general statewide business license, but specific licenses or permits may be necessary depending on the business type and location:

• Professional licenses
• Special permits (e.g., food service or alcohol sales)
• Local business licenses (many Oregon cities and counties require these)

Company Formation Process

1. Name Selection: Choose a unique name that meets Oregon's naming conventions.
2. Designation of a Registered Agent: Appoint an agent for service of process.
3. Filing Articles of Incorporation: Submit necessary documents to the Secretary of State.
4. Bylaws Creation: Prepare internal governance documents.
5. Initial Directors Appointment: Name the corporation's initial board of directors.
6. Stock Issuance: Issue stocks to shareholders (if applicable).
7. Annual Report Filing: File annual reports as required by state law.
8. Tax Registration: Obtain tax identification numbers and register for state taxes.

Company Dissolution

Dissolution of an Oregon corporation requires approval by the board of directors and, often, shareholders.

The process involves:

• Liquidating assets
• Paying off creditors
• Distributing remaining assets to shareholders
• Filing Articles of Dissolution with the Secretary of State

More on forming a business in Oregon

Oregon Wills and Living Trusts

Living Trusts in Oregon

A living trust, also known as an inter vivos trust, outlines how a grantor's assets are managed and distributed during their lifetime and at death. In Oregon, the creation and operation of a living trust are governed by ORS Chapter 130 (the Oregon Uniform Trust Code).

• Creation of a Revocable Living Trust: Typically costs between $1,000 and $3,000, though complex arrangements can increase the cost.

Trusts vs. Wills in Oregon

While both trusts and wills are used for estate planning, trusts are gaining popularity due to their advantages:

• Avoiding probate
• Potential tax benefits

However, any property not held in a trust must still be distributed using a will.

Holographic Wills in Oregon

Oregon does not recognize holographic (handwritten) wills unless they comply with all legal formalities, including being signed by the testator and two witnesses (ORS 112.235).

Probate and Trusts

A living trust in Oregon can help avoid the probate process for assets placed in the trust, potentially saving time and money.

How a Will Can Be Invalidated in Oregon

A will may be invalidated in Oregon if:

• Improper execution: Not signed by the testator or attested by witnesses.
• Lack of testamentary capacity.
• Undue influence or fraud.
• Revocation: By a subsequent will or intentional destruction.

Further information on Oregon wills

• Additional details on Oregon living trusts
• Additional State Legal Resources
• Oregon State Bar

Oregon Judicial Department

This publication is intended to inform and educate generally. You should seek the advice of an attorney authorized to practice in your state if you have specific legal questions.