In many cases, the best option to deal with overwhelming unsecured and secured debts is to file for bankruptcy. Although a bankruptcy petition can remain on your credit report for several years, its negative effect lessens over time. The eventual rebuilding of your credit and borrowing power can be difficult but not impossible.
Declaring bankruptcy is a feasible option for individuals struggling with debt, or those overwhelmed with making payments for what they owe. Given its complexity, however, thorough knowledge of relevant bankruptcy laws is crucial before proceeding. It can drastically change your financial situation, but there are various state laws and guidelines that must be considered.
If you are planning to file bankruptcy, or are wondering if it is the best course of action to take, we can provide you with the help you need. Call us today at 503-694-4445. Our experienced and hands-on Portland OR bankruptcy attorneys have over 20 years of experience and nearly 20,000 fact patterns assessed.
Michael O’Brien is one of only three lawyers in Oregon who are Nationally Certified as a Consumer Bankruptcy Specialist. With this broad knowledge base of strategies, we can help you solve your financial problems. Call us at 503-694-4445 to know how we can help.
This article explores bankruptcies in general, and what one will go through under the Chapter 13 bankruptcy procedure. It is divided into the following sections.
- Filing a Petition for Bankruptcy in Portland
- The Bankruptcy Process for Chapter 13
- Why You Should Consider Declaring Bankruptcy
- Why It Matters to Promptly Seek Legal Assistance
- Consult our Oregon Bankruptcy Law Office
Filing a Petition for Bankruptcy in Portland
It is essential to keep in mind that different types of bankruptcy are suited for different filers, depending on their goals, debts, and resources. Additionally, a bankruptcy case will involve numerous paperwork and supporting documents. These would include court forms and documentation that must be complete and comply with relevant bankruptcy rules.
Filing bankruptcy is a legal option for people to get out of debt and gain financial freedom once again. There are different types of bankruptcy, each with a set of advantages and disadvantages. A Chapter 7 liquidation, for example, is generally ideal for those dealing with credit card bills, medical bills, and personal loans.
A Chapter 13 reorganization, on the other hand, is often apt for those with assets that they would want to keep. It will also allow you to restructure your overwhelming debts and bring current payments for secured debts. Very broadly, you can avoid foreclosure and repossession through a debt repayment plan that will run for three to five years, as approved by the bankruptcy court.
The Bankruptcy Process for Chapter 13
Bankrupt individuals who are filing Chapter 13 bankruptcy cases must have a steady income to repay their debts. In this type of bankruptcy, you can keep all of your properties and assets, but you must pay back your creditors for non-exempt assets through a debt repayment plan. Such a payment plan will run for three to five years.
A Chapter 13 bankruptcy declaration is generally ideal if you are a high-income earner who plans on reorganizing the debts you owe. If you are planning to declare bankruptcy under this Chapter, you would generally go through the following steps:
- Consult with a credit counselor
Take this opportunity to discuss your financial situation and any debt reorganization plans, and matters related to eligibility
- Work with your bankruptcy trustee
The trustee in bankruptcy cases has a major responsibility and will help determine the success of your case. Ultimately, the goal is to be allowed by the court to repay secured and unsecured debts while retaining your assets
- Formally submit your bankruptcy petition
This is an important step, especially if you want to benefit from the bankruptcy protection that comes with filing.
- Submit your proposed payment plan
This must be done 14 days after filing the petition. Unknown to some, it is vital to start making payments within 30 days from filing, even before the plan has been approved by the bankruptcy court.
- Go through the confirmation hearing
As with other required steps, completing the hearing and the required debtor education course is key to a smooth petition for bankruptcy.
Consult with well-trained and knowledgeable Oregon bankruptcy lawyers who will look into your financial situation and give your bankruptcy case the attention it deserves. We have extensive experience in helping individuals who are unable to pay off what they owe.
Why You Should Consider Declaring Bankruptcy
Being in serious debt is a big problem, and filing for bankruptcy may be the best way for you to rebuild your financial future. Depending on the specific circumstance of the bankrupt individual, filing for bankruptcy can help stop foreclosure, stop repossession, and stop wage garnishment.
The hope of having discharged debts
While not all of your debt problems will be eliminated when you file bankruptcy, it can help you eliminate certain forms of debt and free up a sufficient budget for you to pay back non-dischargeable debts.
Following the bankruptcy code, unsecured debts, or debts without collateral, are usually dischargeable. These may include credit card bills, medical bills, and personal debts. However, certain types of debt do not involve collateral but are considered non-dischargeable. Typical examples include particular tax debt, criminal fines and penalties, child support, alimony, and student loan debt.
Competent and compassionate bankruptcy lawyers can explain these advantages of a bankruptcy declaration in more detail.
The benefits of the automatic stay
Most filers seek to benefit from the bankruptcy protection that comes with their case. An automatic stay ensures that creditors will not sue debtors for failure to pay back what they owe. It can also stop creditor harassment and wage garnishment, which is very useful for those struggling with debt.
An automatic stay generally takes effect once the relevant bankruptcy court has approved a bankruptcy petition. A creditor of a debt that was included in the bankruptcy discharge cannot even contact the debtor for repayment after bankruptcy proceedings are finalized. It is considered a reasonably quick way to get rid of the stress brought about by constant calls and letters from debt collectors.
Declaring bankruptcy can harm the credit report of the bankrupt individual. Getting new credit will not be easy, even after bankruptcy. Nevertheless, one would be able to notice a slow but steady recovery in their credit score months after the bankruptcy petition is filed.
If you are struggling with debt and are considering bankruptcy, call our bankruptcy lawyers in Portland today.
Why It Matters to Promptly Seek Legal Assistance
Bankruptcy attorneys with extensive experience in handling bankruptcy cases can provide quality legal advice on how you can get back on track. Discuss your finances and debt reorganization plans, if any. This is also a good chance to clarify what can be done to have certain types of debt forgiven, be allowed to repay secured and unsecured debts while retaining your assets, or both.
Filing for bankruptcy can provide filers protection from creditors with the ultimate goal of achieving a fresh start. This will only be possible, however, if the right steps are taken at the right time. Individuals declaring bankruptcy in Oregon should obtain legal advice from a professional who can explain all relevant bankruptcy procedures. They can help you obtain debt relief and increase your chances of rebuilding your financial future.
Our Portland, Oregon bankruptcy attorneys have over 20 years of experience. Contact Michael D. O’Brien & Associates, P.C. to discuss your options and benefit from professional and reliable legal representation.
Consult our Oregon Bankruptcy Law Office
We all encounter financial difficulties every once in a while. There are many reasons why people struggle with financial debt, especially given the current situation. Problems might be because of unemployment, growing medical expenses, credit card debt, or marital issues.
A bankruptcy filing, regardless of the filing chapter, will stay on your credit report for several years. It will affect your credit score and ability to get credit after bankruptcy. Despite this, filing bankruptcy can help tremendously with debt settlement and make your life less stressful through the automatic stay.
If you are struggling with debt and are considering bankruptcy, call us today at Michael D. O’Brien & Associates by dialing 503-694-4445. Our professional Portland OR bankruptcy attorneys can assess your financial situation and help you decide the best course of action to take.
