Chapter 13 Bankruptcy Filing in Portland
Chapter 13 Bankruptcy Attorney in PortlandDealing 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 WorksA 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.
What a Chapter 13 Bankruptcy Can DoOnce 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 DisconnectionsIf 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 ForeclosureIf 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.
EvictionIf 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 GarnishmentAfter 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 PlanWhen 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.
Qualifying for a Portland Chapter 13 BankruptcyIndividuals 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 LimitsWhen 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 IncomeWhen 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 BusinessA 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 LawyerStruggling 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.
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