Chapter 13 Bankruptcy in Oregon
If the debtor’s annualized income is above the current median income level for their family size in their respective state, then the debtor may need to file a Chapter 13 Bankruptcy. The Means Test analysis can get very complicated. I recommend that you consult with me first to discuss your situation.
In both a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy filing, there is a meeting with the relevant trustee about 30 days after filing. At my consultation, I will explain what to expect at this trustee hearing. It is rare for the debtor to have to appear in front of a judge in either a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.
A legal stay goes into effect immediately with the filing of a Chapter 13 Bankruptcy. Unlike a Chapter 7 Bankruptcy, a Chapter 13 Bankruptcy will have monthly payments that need to be made to the trustee. The minimum monthly payment is $100, but it may be higher if the debtor’s net monthly income is higher than $100.
Benefits to Filing a Chapter 13
There are many benefits to filing a Chapter 13 Bankruptcy. They are often similar to those of filing a Chapter 7 Bankruptcy. A couple examples include relief from creditor harassment and collection action, and eventually, discharge of most unsecured debts.
Additionally, there are unique benefits to filing a Chapter 13 Bankruptcy. One is the ability to strip away a wholly unsecured second mortgage and/or lien from a house.
Many people are in a financial position where a Chapter 13 Bankruptcy will greatly help them as a result of the housing market collapse and the substantial drop in real estate values. This is because in middle-class America it has traditionally been an individual’s home that was the largest portion of their net worth.
The good news is that a wholly unsecured second mortgage and/or home equity line can be stripped away in a Chapter 13 Bankruptcy filing. Another unique benefit of a Chapter 13 Bankruptcy is that it can allow a debtor to pay off any mortgage arrearage (past due amounts on their mortgage) over the life of the plan as long as the debtor can start paying their current mortgage payments the month after filing.
Many people have been able to save their homes with a Chapter 13 Bankruptcy filing for this reason. If a debtor does have a lot of non-exempt assets, they can file a Chapter 13 Bankruptcy and keep everything. It takes an experienced and trustworthy bankruptcy lawyer to properly advise an individual on the best course of action.
Speak With an Experienced Bankruptcy Attorney
The bottom line is that if you are not comfortable with your current debt load, then you should schedule a consultation. There are numerous benefits to a consultation with me.
- You will never wait in a waiting room with other potential or actual bankruptcy clients. (My southeast office in the Sellwood neighborhood in Portland, Oregon, is actually a home office; it is separate from the main house.)For obvious reasons, a bankruptcy filing and/or a potential bankruptcy filing is a private matter.
- You will never meet with a legal assistant. Some bankruptcy lawyers have their legal assistants do a lot of the work on your case, including an initial intake. That will never happen with me for numerous reasons that I can explain to you when we meet.
- I am compassionate about your financial situation and I have the utmost empathy for what you’re going through. My reward is that I get to help you. This is why I decided to practice Bankruptcy Law during these trying economic times.
When the Chapter 13 Bankruptcy is filed, I will put forth a proposed monthly payment plan. Chapter 13 Bankruptcy plans last anywhere between 36 and 60 months. It is rare that the debtor’s unsecured creditors receive a large percentage of their debt during the life of the Chapter 13 Bankruptcy plan.
I take great pride in seeing the positive in everybody and trying to help individuals better their lives; it is very important to me that the service that I provide to my clients is exceptional.
Among other things, this includes promptly returning phone calls and emails and completing work in a timely and accurate fashion.
