Chapter 13 Bankruptcy Filing in Portland

Chapter 13 Bankruptcy Attorney in Portland

Dealing with debt can be overwhelming, and sometimes filing for bankruptcy may just be what you need to get a fresh start. There are different types of bankruptcy available for individuals and families in Oregon, and choosing what’s best for your financial situation is a crucial decision to make. Our Portland Chapter 13 bankruptcy attorney can help you determine if Chapter 13 is right for you and assist you in your bankruptcy process. Call us at 503-694-4445 to schedule a case evaluation with our experienced Portland bankruptcy attorneys.

How Chapter 13 Bankruptcy Works

A Chapter 13 bankruptcy can allow you to keep your properties with secured loans (debts with collateral), such as your car and your house, and to organize a repayment plan for your debts. It’s a type of reorganization bankruptcy designed for individuals with a stable income who can allot a part of their monthly income to pay back their debts. The amount that has to be paid back in Chapter 13 will depend on your income, the type and amount of debts you have, and how much property and assets you have. A Chapter 13 bankruptcy will work for you if:

• You’re not qualified to apply for a Chapter 7 bankruptcy, but you need debt relief to stop litigation, prevent wage garnishments and car repossession, or
• You have fallen late on your credit card payments, mortgage, or car loan.

Consult an experienced Chapter 13 bankruptcy attorney to determine which type of bankruptcy is right for you and learn about the costs of filing bankruptcy.

What a Chapter 13 Bankruptcy Can Do

Once you file your bankruptcy and other official documents, the automatic stay will take effect. It is a court-issued order that will stop most civil lawsuits that are filed against you right away. Most collection activities from debt collectors, collection agencies, or government agencies will be stopped, too. The automatic stay is one reason why many people opt to file for bankruptcy. Filing bankruptcy can temporarily, or sometimes even permanently, prevent garnishments, harassing phone calls from creditors, house foreclosures, and eviction. The bankruptcy automatic stay can also help you in certain emergency situations.

Utility Disconnections

If you’re behind on your utility bill payments and your electricity, gas, water, or telephone service are about to be disconnected, an automatic stay can prevent the disconnection for at least 20 days.

Property Foreclosure

If your house is at risk of being foreclosed, the automatic stay can help you stop the proceedings. In Chapter 13 bankruptcy, you’ll be given the opportunity to catch up on your mortgage through a 3-5 year repayment plan.

Eviction

If you’re about to be evicted from your home, an automatic stay can temporarily prevent this from happening. However, if your landlord already has an eviction lawsuit against you, an automatic stay can only delay the eviction for a few days or weeks.

Wage Garnishment

After you filed for bankruptcy, most wage garnishments will be stopped through the automatic stay. Credit card debts and personal loans will also be discharged after completing the bankruptcy process. However, child support and alimony payments won’t be discharged in Chapter 13 bankruptcy. Dealing with debt can bring huge amounts of stress and affect your quality of life. If you’re looking for a debt solution that best fits your situation, our Portland bankruptcy attorney can help. Call Michael D. O’Brien & Associates PC today at 503-694-4445 to consult with bankruptcy attorneys who can assess your current financial situation and give you the best solution that fits your needs.

Chapter 13 Repayment Plan

When you file for Chapter 13 in Oregon, you will be given a chance to come up with a debt reorganization plan and repay your secured debt in a span of 3-5 years. Also called a “wage earner’s bankruptcy,” a Chapter 13 bankruptcy provides a way for Portland debtors with regular income to reorganize their debts and finances. You’ll be allowed by the court to keep your assets and property that are subject to security interests, as long as you pay the required payments under the repayment plan. During this period, the federal court will protect you and your assets, which means that debt collectors cannot confiscate your assets. A Chapter 13 bankruptcy trustee appointed by the bankruptcy court will oversee the administration of your debt repayment plan. The duties of a trustee include:

• Reviewing the bankruptcy paperwork and documents;
• Ensuring that the proposed repayment plan complies with bankruptcy laws;
• Collecting debt payments; and
• Distributing payments to creditors.

Under Chapter 13, all your disposable income (which is calculated by deducting your living expenses from your income) will be allocated to your debt repayment plan.

Qualifying for a Portland Chapter 13 Bankruptcy

Individuals dealing with huge debts usually think of bankruptcy as the solution to fix their financial problems. However, Portland bankruptcy laws are more complex than you think. There are eligibility requirements that must be met before you can proceed to file for bankruptcy.

Debt Limits

When filing a Chapter 13, there is a limit to how much secured and unsecured debts you have. With a secured debt, creditors have the right to take your property (such as your car or your house) if you don’t pay back your debt. With unsecured debt, such as medical bills or credit card bills, creditors don’t have the right to take your property away. However, if the total of your debts is too high, you won’t be eligible for Chapter 13. Our Portland Chapter 13 bankruptcy attorney can help you determine your eligibility. If you don’t qualify, we can assist you in filing a Chapter 11 bankruptcy instead.

Stable Income

When you file a bankruptcy, you’ll be required to prove in court that you can afford to pay your monthly household expenses as well as provide payments for the repayment plan. If your income is insufficient or irregular, then the court might not approve your proposed reorganization plan.

Not a Corporation or Business

A Chapter 13 bankruptcy is only available for individuals, and not for companies or businesses. However, if you have business-related debts that are under your personal accounts, they will be a part of your repayment plan. Therefore, it’s possible for a sole proprietorship business to benefit from Chapter 13.

Contact a Portland Bankruptcy Lawyer

Struggling with your financial obligations? Don’t wait until it is too late! Talk to an experienced Portland bankruptcy attorney right away to discuss the best debt solution for you.

  Looking for a Portland Chapter 13 bankruptcy attorney? Representing clients in the Portland, Oregon metro area, Michael D. O’Brien & Associates, P.C. has helped many consumers use Chapter 13 bankruptcy.  It can help take control of your debt situation and attain financial stability. People who file for bankruptcy often face a daunting amount of debt and collection activity but still have a steady income and assets they do not want to lose. Chapter 13 temporarily stops creditors from pursuing collection actions. This allows you to negotiate new, more manageable payment terms with your creditors. Furthermore, if you have obligations that cannot be discharged under Chapter 7, such as child support, student loans, and tax debt, Chapter 13 may be the right option for you. Call our office today to speak with our Oregon bankruptcy lawyers and get started with your bankruptcy filing today.

Bankruptcy Done Right

If bankruptcy is the best way for you to get back on track, we will help you examine your finances and file a Chapter 13 petition. We will then work with you to draft a feasible payment plan, which will be submitted to the bankruptcy Court. The payment plan shows how you will pay for your basic needs and make payments on your debts at the same time.

Chapter 13 Bankruptcy Trustee

After we file the payment plan, the Court appointed Chapter 13 bankruptcy Trustee holds a creditors meeting to address creditor claims and your financial status. During this proceeding, you may need to appear in Court to challenge a creditor claim or if other issues arise.

Chapter 13 Confirmation Hearing

After the creditors’ meeting, the Court holds a confirmation hearing to determine whether the proposed payment plan is acceptable or if changes need to be made. We will represent you during all of these proceedings to promote your interests and protect your rights during bankruptcy. Once your payment plan period begins, creditors cannot charge interest on your debts; rather, all payments go straight to the principal balance of each debt. This way, you can pay off your debts as quickly as possible, an important benefit of Chapter 13. The Chapter 13 payment plan usually expires in three to five years, depending on its specific terms. At that time, the Court generally discharges any remaining unsecured debts.

Stopping Foreclosure with Chapter 13

Chapter 13 bankruptcy may be your answer if you have fallen behind on mortgage payments and face foreclosure. Under Chapter 7, a debtor may exempt the equity in the home from liquidation, but this may not mean much if the homeowner has not built up a significant amount of equity and still faces a massive mortgage. As a debtor, you can catch up on past due mortgage payments as part of your repayment plan.  Thereby saving your home from foreclosure and resuming normal monthly mortgage payments.

Seek Experienced, Supportive Representation

While bankruptcy should not be taken lightly, it can be a new beginning for you and your family. We are committed to helping our clients through the bankruptcy process, offering non-judgmental advice, and working to make bankruptcy proceedings as comprehensible and stress-free as possible. With us, you can be confident that you will not only make it through bankruptcy but be on the path toward a positive financial future.