{"id":36783,"date":"2021-12-19T02:52:58","date_gmt":"2021-12-19T10:52:58","guid":{"rendered":"https:\/\/pdxlegal.com\/?p=36783"},"modified":"2023-01-13T03:24:17","modified_gmt":"2023-01-13T11:24:17","slug":"what-does-it-mean-to-declare-bankruptcy-chapter-13","status":"publish","type":"post","link":"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/","title":{"rendered":"What Does It Mean to Declare Bankruptcy Chapter 13?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/pdxlegal.com\/wp-content\/uploads\/2022\/02\/what-type-of-bankruptcy-is-chapter-13.webp\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-36785 size-full\" title=\"what type of bankruptcy is chapter 13\" src=\"https:\/\/pdxlegal.com\/wp-content\/uploads\/2022\/02\/what-type-of-bankruptcy-is-chapter-13.webp\" alt=\"what type of bankruptcy is chapter 13\" width=\"626\" height=\"417\" srcset=\"https:\/\/pdxlegal.com\/wp-content\/uploads\/2022\/02\/what-type-of-bankruptcy-is-chapter-13.webp 626w, https:\/\/pdxlegal.com\/wp-content\/uploads\/2022\/02\/what-type-of-bankruptcy-is-chapter-13-300x200.webp 300w\" sizes=\"(max-width: 626px) 100vw, 626px\" \/><\/a> <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In many cases, the best option to deal with overwhelming <\/span><b>unsecured and secured debts<\/b><span style=\"font-weight: 400;\"> 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><b>bankruptcy laws<\/b><span style=\"font-weight: 400;\"> is crucial before proceeding. It can drastically change your financial situation, but there are various state laws and guidelines that must be considered.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><a href=\"https:\/\/pdxlegal.com\/\"><span style=\"font-weight: 400;\">Portland OR bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> have over 20 years of experience and nearly 20,000 fact patterns assessed.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Michael O\u2019Brien 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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Filing a Petition for Bankruptcy in Portland<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <a href=\"\/debts-survive-chapter-13-bankruptcy\/\">Bankruptcy Process for Chapter<\/a> 13<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Why You Should Consider Declaring Bankruptcy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Why It Matters to Promptly Seek Legal Assistance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consult our Oregon Bankruptcy Law Office<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Filing_a_Petition_for_Bankruptcy_in_Portland\"><\/span><b>Filing a Petition for Bankruptcy in Portland<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6629d967d042a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629d967d042a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/#Filing_a_Petition_for_Bankruptcy_in_Portland\" title=\"Filing a Petition for Bankruptcy in Portland\">Filing a Petition for Bankruptcy in Portland<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/#The_Bankruptcy_Process_for_Chapter_13\" title=\"The Bankruptcy Process for Chapter 13\">The Bankruptcy Process for Chapter 13<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/#Why_You_Should_Consider_Declaring_Bankruptcy\" title=\"Why You Should Consider Declaring Bankruptcy\">Why You Should Consider Declaring Bankruptcy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/#The_hope_of_having_discharged_debts\" title=\"The hope of having discharged debts\">The hope of having discharged debts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/#The_benefits_of_the_automatic_stay\" title=\"The benefits of the automatic stay\">The benefits of the automatic stay<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/#Why_It_Matters_to_Promptly_Seek_Legal_Assistance\" title=\"Why It Matters to Promptly Seek Legal Assistance\">Why It Matters to Promptly Seek Legal Assistance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/pdxlegal.com\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/#Consult_our_Oregon_Bankruptcy_Law_Office\" title=\"Consult our Oregon Bankruptcy Law Office\">Consult our Oregon Bankruptcy Law Office<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">It is essential to keep in mind that <\/span><b>different types of bankruptcy<\/b><span style=\"font-weight: 400;\"> 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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <a href=\"https:\/\/pdxlegal.com\/chapter-7\/\">Chapter 7 <\/a><\/span><b>liquidation<\/b><span style=\"font-weight: 400;\">, for example, is generally ideal for those dealing with credit card bills, medical bills, and personal loans.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><b>debt repayment plan<\/b><span style=\"font-weight: 400;\"> that will run for three to five years, as approved by the bankruptcy court.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Bankruptcy_Process_for_Chapter_13\"><\/span><b>The Bankruptcy Process for Chapter 13<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">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 <\/span><b>three to five years<\/b><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <a href=\"https:\/\/pdxlegal.com\/chapter-13\/\">Chapter 13 bankruptcy<\/a> 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:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consult with a credit counselor<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Take this opportunity to discuss your financial situation and any debt reorganization plans, and matters related to eligibility<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work with your bankruptcy trustee<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The <\/span><b>trustee<\/b><span style=\"font-weight: 400;\"> 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<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Formally submit your bankruptcy petition<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is an important step, especially if you want to benefit from the <\/span><b>bankruptcy protection<\/b><span style=\"font-weight: 400;\"> that comes with filing.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Submit your proposed payment plan<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This must be done 14 days after filing the petition. Unknown to some, it is vital to <\/span><b>start making payments<\/b><span style=\"font-weight: 400;\"> within 30 days from filing, even before the plan has been approved by the bankruptcy court.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Go through the confirmation hearing<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As with other required steps, completing the hearing and the required debtor education course is key to a smooth petition for bankruptcy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_You_Should_Consider_Declaring_Bankruptcy\"><\/span><b>Why You Should Consider Declaring Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Being in serious debt is a big problem, and <\/span><a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\"><span style=\"font-weight: 400;\">filing for bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> 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 <\/span><b>stop foreclosure<\/b><span style=\"font-weight: 400;\">, stop repossession, and stop wage garnishment.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_hope_of_having_discharged_debts\"><\/span><b>The hope of having discharged debts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Following the bankruptcy code, unsecured debts, or debts without collateral, are usually <\/span><b>dischargeable<\/b><span style=\"font-weight: 400;\">. 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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Competent and compassionate bankruptcy lawyers can explain these advantages of a bankruptcy declaration in more detail.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_benefits_of_the_automatic_stay\"><\/span><b>The benefits of the automatic stay<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Most filers seek to benefit from the bankruptcy protection that comes with their case. An <\/span><b>automatic stay<\/b><span style=\"font-weight: 400;\"> 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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><b>steady recovery in their credit score<\/b><span style=\"font-weight: 400;\"> months after the bankruptcy petition is filed.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are struggling with debt and are considering bankruptcy, call our bankruptcy lawyers in Portland today.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_It_Matters_to_Promptly_Seek_Legal_Assistance\"><\/span><b>Why It Matters to Promptly Seek Legal Assistance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Bankruptcy attorneys with extensive experience in handling bankruptcy cases can provide quality legal advice on how you can <\/span><b>get back on track<\/b><span style=\"font-weight: 400;\">. 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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><b>declaring bankruptcy in Oregon<\/b><span style=\"font-weight: 400;\"> 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.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our Portland, Oregon bankruptcy attorneys have over 20 years of experience. Contact Michael D. O\u2019Brien &amp; Associates, P.C. to discuss your options and benefit from professional and <\/span><b>reliable legal representation<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Consult_our_Oregon_Bankruptcy_Law_Office\"><\/span><b>Consult our Oregon Bankruptcy Law Office<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We all encounter financial difficulties every once in a while. There are many reasons why people struggle with <\/span><b>financial debt<\/b><span style=\"font-weight: 400;\">, especially given the current situation. Problems might be because of unemployment, growing medical expenses, credit card debt, or marital issues.\u00a0<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are struggling with debt and are considering bankruptcy, call us today at Michael D. O\u2019Brien &amp; Associates by dialing 503-694-4445. Our professional <\/span><a href=\"https:\/\/pdxlegal.com\/contact\"><span style=\"font-weight: 400;\">Portland OR bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> can assess your financial situation and help you decide the best course of action to take.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":36786,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[],"_links":{"self":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36783"}],"collection":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/comments?post=36783"}],"version-history":[{"count":5,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36783\/revisions"}],"predecessor-version":[{"id":37371,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36783\/revisions\/37371"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media\/36786"}],"wp:attachment":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media?parent=36783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/categories?post=36783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/tags?post=36783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}