Exemptions in Chapter 13 Bankruptcy

Before you, as a debtor, file for Chapter 13 bankruptcy, it is crucial that you understand the exemptions in Chapter 13 bankruptcy and determine whether your properties are at stake. Commonly, the exempted properties and personal assets include furnishing, clothing, and other equity in a car. You need to have interest in the pertinent property to claim your bankruptcy exemptions.

A skilled and experienced bankruptcy attorney, from Michael D. O’Brien & Associates, P.C., will assist you in protecting your property. Bankruptcy is a great choice to overcome your financial debts. But if you are still uncertain about Chapter 13 bankruptcy exemptions in Oregon, our extensive years of experience and knowledge in bankruptcy law may help you understand your smart options. If you or someone you know is in need of answers to the questions insofar as Chapter 13 Bankruptcy is concerned, schedule a free case evaluation with us! 

 

• Competent – Looking at the competency of your bankruptcy lawyer is tantamount to foreseeing the outcome of your case. Simply put, if your bankruptcy lawyer has demonstrated competence and integrity in the field of bankruptcy, you have a better chance of receiving positive outcomes. You can check the bankruptcy law firm’s competence by checking on the reviews and testimonials from their clients. 

• Empathetic – Empathy is a fundamental requirement in customer service. Dealing with various clients is a part of the legal profession, hence, empathy and good listening skills must be present. Your feelings during your undue hardship are all valid. A bankruptcy lawyer must be able to put himself/herself in your situation.

• Avoid Bankruptcy mills – Bankruptcy mills are the type of bankruptcy law firms that handle a lot of pending cases. Handling multiple bankruptcy cases is not a problem, but being unable to provide high-quality service is. Bankruptcy mills should be avoided in most cases because, due to the large number of cases they handle, they can no longer focus on the specifics of each client.

Choosing Michael D. O’Brien & Associates, P.C. as your bankruptcy lawyer will be your wisest decision. We have been assisting families and individuals from Portland, Bend, Clackamas, Tigard, and surrounding Oregon areas for over 20 years. We certainly understand every clients’ situation and we ensure that you will get personalized legal help to overcome your financial difficulties. We can focus on the specifics of each client by putting more emphasis on their required assistance. For case evaluation, set an appointment today!

Chapter 13 Bankruptcy is the best choice for debtors who want to keep secured assets. This includes cars or homes. Under this type of Bankruptcy, the debtor can propose a 3-5 year payment plan to the creditors. It may be paid in full or part, coming from the debtor’s future income. In the case when the debtors have more equity in the secured assets, then they can exempt them with bankruptcy exemptions. Chapter 13 debtors typically have a regular income and can afford to establish a repayment plan for some amount to creditors.

Retaining Properties With Chapter 13 Bankruptcy Exemptions

While the exemptions do not include luxury items such as vacation cabins or boats, it allows you to protect household goods. Essential properties are protected under Chapter 13 and 7, in addition to giving guarantee to the creditors that they’ll get paid of the amount owed to them. To know how each chapter works, below are their distinctions:

• Chapter 13 Bankruptcy – others refer to it as a “repayment chapter.” Instead of selling your nonexempt assets, Chapter 13 enables you to pay the nonexempt amount. This is achievable with your proposed repayment plan.

• Chapter 7 Bankruptcy – also known as the “liquidation chapter.” The appointed bankruptcy trustee will sell your assets if you cannot exempt them under this chapter. Thereafter, they will return the exemption portion you owe, and pay your creditors with the balance after subtracting sales charges.

In both types of bankruptcy, the creditors will still get the amount of the nonexempt properties. This order makes sure that the creditors will not get less than what is due in Chapter 13 than they will have in Chapter 7.

Calculating Chapter 13 Repayment Plan

In Chapter 13 bankruptcy, you will propose a monthly repayment plan through the bankruptcy trustee. In repayment plan, there will be numerous complicated steps that you need to go through, but generally speaking, they will depend on your:

• income;
• monthly expenses;
• the type of debt and the amount you owe; and
• the property you own.

Steps in Repayment Plan: 

• Determe your disposable income by subtracting the expenses from your monthly income. 
• Multiply your disposable income by the months in your payback schedule. 
• Calculate the value of your nonexempt assets. Every state permits debtors to retain some property by utilizing the state’s bankruptcy exemptions. The assets that you can protect with exemptions fall under the category of nonexempt assets. In a Chapter 13 bankruptcy, creditors must be paid by the debtors based on the value of nonexempt assets in the repayment plan. 
• Determine the debts that you are required to pay in full under Chapter 13 repayment plan. These debts include, but not limited to car and mortgage payments, tax debts, and support arrearages. 

Once you comply with the pertinent steps, you will be required to settle the greater amount of your:

• Disposable income;
• The total debts you are obliged to pay in full amount and the value of your nonexempt property.

It is important to remember that the process of determining your repayment plan is quite complex. This brief explanation should not serve as your only guide, but rather should only provide you with the foundations. If you want assistance, call a reputed and reliable bankruptcy attorney.

Solving your financial debts requires patience. The process of determining the exempt property and developing a sufficient Chapter 13 repayment plan is complicated by nature. Not getting legal help from a bankruptcy lawyer will just add another layer of stress. While it is not required, hiring a competent, empathetic, and non-bankruptcy mills attorney is certainly advantageous. 

Two of the nationally-certified consumer bankruptcy attorneys are in Michael D. O’Brien & Associates, P.C. This ensures that the extensive years of assisting different clients and resolving their financial problems, enables us to offer an effective personalized legal service. We are committed to going beyond customer service to provide you  with exceptional satisfaction. Other than bankruptcy, we also assist clients who require help with estate planning. If you or someone you know is interested with the services we offer, get professional help now!