Chapter 13 Bankruptcy Filing Procedures

Filing for Chapter 13 Bankruptcy due to financial problems is a big decision to make. To have a solution to your debt problems, a significant amount of effort is needed to attain a fresh start. In the midst of undue hardship, filing for bankruptcy is a wise decision. But given the complex bankruptcy process, everyone requires a trusted Portland bankruptcy lawyer who knows all the prudent choices. 

Debts can be aggravating at times. It makes it difficult to sleep soundly at night or simply have peace of mind. If you are currently considering filing Chapter 13 bankruptcy, try discussing your case with us via free case evaluation and let us know what the best choices are for you depending on your situation.

Why do I need a Bankruptcy Attorney in Oregon?

Your choice of counsel is critical if your finances are at stake. While there are many lawyers who specialize in and understand the bankruptcy procedure, picking the best one should still be considered. Your financial future is dependent on the outcome of the bankruptcy petition. 

As one of the finest ranked bankruptcy lawyers in Portland, Oregon, Michael D. O’Brien and Theodore J. Piteo guarantee that you will not be lost throughout your case. Michael D. O’Brien is committed to understanding his clients’ desires and providing the finest legal strategies to achieve them. Theodore J. Piteo is also involved in the community, serving on the Local Rules Committee and at the Legal Aid Society of Oregon’s Bankruptcy Clinic.

We ensure satisfactory results with over 26 years of studying and practicing bankruptcy lawyers and resolving financial problems for clients. If you or someone you know is considering filing bankruptcy or wanting to stop foreclosure, wage garnishment, car repossession, and among others, consult our Portland Bankruptcy Lawyers now!

What is Chapter 13 Bankruptcy?

Unlike Chapter 7 Bankruptcy wherein you don’t pay anything to the debt collectors, in Chapter 13 Bankruptcy, debtors must have a repayment plan which will allow them to pay what they owe within 3-5 years. The are benefits in Chapter 13 bankruptcy which are not available in Chapter 7. For instance, you don’t just keep all your properties, but also prevent them from car repossession or home foreclosure. 

If you need more time to repay obligations that cannot be discharged in bankruptcy, you might file for Chapter 13. The only disadvantage of Chapter 13 bankruptcy is its high cost. Some people are unable to make the monthly payments.

Chapter 13 Bankruptcy Filing Procedures

It is essential to understand the full procedure before filing for Chapter 13 bankruptcy. This helps you in deciding what sort of bankruptcy to file and allows you to follow your progress. The following are the Chapter 13 Bankruptcy procedures:

• Hire a Bankruptcy Lawyer – While it is not a requirement to have legal counsel in filing for bankruptcy, it is highly recommended. Your bankruptcy attorney will assist you in compiling your financial summary, including who you owe money to and how much you owe. This comprises your monthly spending, income expenses, and other things. You must also prepare to propose a repayment plan for your debts. The amount of your proposed monthly payments will depend on several factors, such as expenses and income. 

• Complete the necessary courses – Before filing Chapter 13 Bankruptcy, you are required to complete a credit counseling course. You will obtain a certificate of completion which will be valid for 180 days. After filing Chapter 13 Bankruptcy and before discharging your debts, you also need to finish debtor-education courses. 

• The Bankruptcy court will appoint Trustee – The Court will appoint a trustee to collect the appropriate payments from you on behalf of your creditors. The trustee will also be the receiver of copies of your most recent federal tax return. You must also file all applicable state, local, and federal tax returns, and continue to do so even after the repayment plan begins. You must give over any net federal and state returns you receive to the trustee. Before you can be discharged, you must declare that all domestic support obligations have been paid in full or that your repayment plan includes payment of those obligations.

• You will make the first payment – Within thirty days, prior to the commencement of your plan, you are required to make your first payment to the trustee. If you fail to make this payment, the trustee has the legal authority to dismiss your case. Only a competent bankruptcy court can grant you permission to miss a payment. Similarly, if you did not receive authorization from the trustee, you are not permitted to incur credit obligations throughout the payment plan.

• Court sets the date of hearing – After filing, the court will then schedule a hearing. This hearing is also known as a meeting of creditors. You and the creditors are required to attend the meeting and answer the questions honestly under oath about your financial concerns. 

• The Trustee will conduct a meeting – After the court holds a hearing, it is now the job of the trustee to hold another meeting. This is to verify all the financial information you provided. The trustees may interrogate you apropos your expenses, income, past earnings, property, and your repayment plan schedule. 

• The Bankruptcy court will determine whether or not your plan meets all the pertinent requirements – This is also known as the confirmation hearing. The court notifies you ahead of time regarding the schedule of the hearing to determine whether or not your proposal is accepted. The creditors may still attend the meeting and raise their objections, if any. If your plan is verified acceptable and you work, your employer may be asked to make monthly payments to the trustee on your behalf by deducting a portion of your wages.

Call our Bankruptcy Attorney Now!

Filing for Chapter 13 bankruptcy may be your best option for getting rid of your unsecured debts. However, the issue remains: the complicated process may cause you additional stress. That being said, you will need the services of an experienced bankruptcy attorney. You will definitely save more time and money if you have your legal counsel.

Michael D. O’Brien & Associates, P.C. is more than willing to assist if you or someone you know is seeking help on eliminating debts. With our extensive years of experience, proven competence, and reputation, we guarantee to give you an outstanding legal service. Other than bankruptcy, we also offer debt alternatives and estate planning. If you are interested in any of our services, we offer free initial case evaluations on most matters.