Is There a Chapter 13 Bankruptcy Debt Limit?

Chapter 13 is a reorganization bankruptcy. With this form of bankruptcy, you get an automatic stay as soon as you file. This shields you from most collection efforts while the bankruptcy is in progress, so you get some immediate relief. You create a repayment plan that will span for three years or five years when you are going through this type of bankruptcy.

The court allows you to maintain possession of enough resources to satisfy your basic necessities, and income that is looked upon as disposable income will be earmarked to pay your debts over the course of the repayment plan. Certain debts are considered to be priority debts, and they are placed ahead of non-priority debts like medical expenses and credit card debt. If there is not enough disposable income to pay these non-priority debts, they can be discharged in a Chapter 13 bankruptcy. This type of bankruptcy will stay on your credit report for seven years, but that does not mean that you cannot obtain new lines of credit sooner.

Most individuals will qualify for a Chapter 13 bankruptcy filing. However, if you have an extraordinarily high level of debt, you may not be eligible because there are debt limits. We use the word “limits” in the plural because there are different parameters for secured debt and unsecured debt. The limit for secured debt (like real estate and motor vehicles) is $1,184,200. For unsecured debt, the Chapter 13 debt limit is $394,725.  If your debt exceeds these limits, you still have recourse. You could choose to file for a Chapter 11 bankruptcy, which is another type of reorganization that is usually utilized by businesses.

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We serve people in Vancouver and the Tri-Cities area in Washington, and we also have offices in Portland, Eugene, and many other cities in the state of Oregon. If you are interested in a bankruptcy filing, our doors are open, and we offer complementary, no obligation initial consultations. You can request an appointment right now through this website if you click this link and fill in the form that you see: free bankruptcy case evaluation.

Is Any Property Exempt When I File a Chapter 7 Liquidation?

A Chapter 7 bankruptcy is a liquidation bankruptcy. As the name would suggest, if you file for this type of bankruptcy, you might be required to turn your property over to a bankruptcy trustee. The trustee will liquidate the property and the proceeds would be used to pay back your debts. Some types of debts are considered to be priority debts so these would be paid first. Child support and alimony are two of the priority debts.

There are bankruptcy exemptions, so you don’t necessarily have to give everything that you own to the trustee. The exact nature of the exemptions will vary state-by-state, and there are also federal bankruptcy exemptions. We have bankruptcy law offices in Portland, Eugene, Salem, Medford, and several other cities in the state of Oregon. You have the option of choosing the federal exemptions, or the Oregon State exemptions. However, you cannot mix and match to suit your purposes – it’s either one or the other.

If you use the Oregon exemptions, $40,000 worth of equity in property that is eligible for a homestead exemption will exempt for bankruptcy purposes ($50,000 for a married couple). If have received compensation because you have been a victim of a crime, the funds would be exempt, and up to $10,000 in bodily injury damages can be retained. If you have tools or equipment that you use to make a living, the exemption is $5,000.

In addition to our locations in Oregon, we have an office that serves the Tri-Cities in the state of Washington, and we have a Vancouver location as well. The state exemptions are quite a bit different in Washington. The home equity exemption is $125,000, which is a big improvement over Oregon. You can see a complete list of the exemptions on the Washington State Legislature website.

We are here for you if you would like to discuss a potential bankruptcy filing with a licensed attorney. Our firm offers free, no obligation case evaluations, and you can request an appointment if you send us a message through this page: free bankruptcy consultation.

Filing for Bankruptcy in Oregon

We have bankruptcy law offices in many different cities throughout the state of Oregon, including Portland, Medford, Eugene, Salem, Tigard, Klamath Falls, Coos Bay, Bend and several others. There are federal bankruptcy statutes, but there are also state specific laws that effect bankruptcy. In this post, we will provide an overview regarding some of the specific details that come into play when you file for bankruptcy in Oregon.

First, you have to understand what type of bankruptcy you are going to file. Most individuals will choose between either a Chapter 7 bankruptcy or a Chapter 13. You have to make an honest effort to pay back as much of your debts as you can if you have sufficient disposable income, so there is a means test that you must pass to qualify for Chapter 7, which is a liquidation bankruptcy. You automatically pass this test if your income is less than the median income in the state of Oregon. According to the United States Census Bureau, the median income in our state for a single person is $50,333 per year.  For a household of 4, the median income is $80.170.   You can potentially qualify for Chapter 7 even if your income exceeds this amount if it is determined that you don’t have enough disposable income to devote to a repayment plan.

Before you are allowed to enter into the bankruptcy process, you are required to take a credit counseling course. You also have to take a debtor education course before your debts can be discharged. This requirement can seem like a huge hassle, but it does not take long and it allows an independent party to review your finances before you file the case.  Most people take these courses online and some people do them over the phone. You can click these links to see a list of the approved providers of these tests for residents of Oregon: credit counseling and debtor education.

Simplify the Process!

The best way to file for bankruptcy in Oregon is to sit down and discuss all of your options with a licensed bankruptcy lawyer. One you determine which bankruptcy is right for you, your attorney can guide you through the process each and every step of the way.  Legal assistance is invaluable because it can be complicated to navigate these waters on your own. If you would like to speak with us about your debt, we would be more than glad to assist you. Our firm offers free consultations, and you can request an appointment if you send us a message through our contact page.

What Does a Chapter 13 Filing Entail?

When you start to think about a bankruptcy filing, you should understand the fact that there are different types of bankruptcies, and you will not necessarily qualify for all of them. Chapter 12 is a type of bankruptcy that is available to some family farmers and fishing businesses. Chapter 11 is a reorganization plan that is typically utilized by businesses. The vast majority of individuals who are looking for debt relief will choose either a Chapter 7 bankruptcy or a Chapter 13.

If your income is greater than the median income in the state of your residence, you may not be able to qualify for a Chapter 7. You will be required to submit financial disclosure forms, and you will be deemed ineligible for a Chapter 7 filing if the court determines that you have enough disposable income to pay back a some portion of your debt over time.

Under these circumstances, you would be able to file for a Chapter 13 bankruptcy as long as the amount of your secured debt does not exceed $1,184,200, and your unsecured debt is less than $394,725. (These limits will be adjusted for inflation in April 2019.) This is a reorganization bankruptcy, so the idea is to restructure your debt with a payment plan that will typically last 5 years.

As soon as you file for Chapter 13, you will get an automatic stay. This will put a stop to all collection efforts while the process is underway. You do not have to surrender any property when you file for this type of bankruptcy. Priority debts that must be paid first include child support, spousal support, taxes and some other debt. If you are behind on secured debts, like your mortgage or your car payment, the money that you owe can be paid back over time as part of the repayment plan.

Schedule a Free Bankruptcy Consultation Right Now!

If you reside in Vancouver or the Tri-Cities area in Washington, we have an office near you, and we also have numerous offices spread throughout the great state of Oregon. We offer free initial case evaluations, and you can set up an appointment with a licensed bankruptcy attorney right now if you reach out to us toll-free at 800-682-9568.

Can a Noncitizen File for Bankruptcy?

Before we address the question that serves as the title of this blog post, we should explain some of the basic reasons why bankruptcy could provide a solution if you are struggling financially. If you qualify for a Chapter 7 filing, your unsecured debt can be completely discharged. Unsecured debts include credit card balances, unpaid medical bills, and a number of other types of debts. When you rid yourself of these obligations, other debts that you may have, like your home mortgage or student loan, will be easier to pay.

People who cannot qualify for a Chapter 7 bankruptcy can choose a Chapter 13. This is a reorganization bankruptcy that allows you to pay back a portion of your debts over a three-year or five-year period. Once again, some unsecured debts may be discharged so that you can afford to pay your non-dischargeable debts through the repayment plan.

Now that we have set the stage, we can get to the point of this post. There are many people who reside in this country, but they are not citizens. Under federal laws, you can in fact file for bankruptcy if you maintain a domicile on American soil or have U.S.-based assets such as a home, a business, or any other property in the United States, even if you are not a citizen of this country. This is good news for noncitizens who are interested in bankruptcy to provide a fresh financial start.

Bankruptcy will typically not make it any more difficult to become a citizen, but in some cases, a bankruptcy filing could make it more difficult to obtain citizenship so if this is a concern to you, you should seek the advice of an experienced immigration lawyer before filing a bankruptcy.

Our firm will be glad to assist you if you would like to discuss a potential bankruptcy filing with us whether you are a citizen or a noncitizen who is living in the United States. We serve clients in Vancouver and Tri-Cities in Washington, and we have many locations throughout Oregon. To schedule a complimentary consultation, call us toll-free at 800-682-9568.

Are All Debts Discharged in Chapter 7?

A Chapter 7 bankruptcy can be a good choice for people who are looking for a fresh start. Many debts can be discharged through a Chapter 7 filing, but there are some types of debts that are not dischargeable. Before we get into the distinctions, we should explain a bit about Chapter 7 eligibility. To be able to file for this type of bankruptcy a person needs to pass a means test.

We have offices in Medford, Eugene, Portland, and numerous other cities in Oregon. If you live in the Beaver State, and your income is less than the median, you will pass this means test, and you would be able to qualify for a Chapter 7 filing. Even if you do not pass the test on this level, you may still be able to qualify if you have very limited disposable income after to your essential responsibilities are met.

Secured debts are debts that have a lien on property that was purchased with credit.  If a person wants to keep collateral during a chapter 7, that person needs to stay current on the payments or the lender will be able to repossess the collateral. Other debts that survive bankruptcy are spousal support and child support, student loans and most taxes.  Some taxes can be eliminate in bankruptcy and an experienced bankruptcy attorney can analyze a person’s taxes to determine if they can be discharged.

Debts that can be discharged include, but are not limited to, unsecured debts like credit card balances, health care bills, accounts that have been turned over to collection agencies, personal loans, utility bills that are overdue, and checks written on insufficient funds (assuming there was no criminal intent) and business debts.

Schedule a Free Case Evaluation Right Now!

If you would like to discuss your financial situation with a licensed attorney, we would be more than glad to help. We offer free, no obligation case evaluations, and we assure you that you will feel completely comfortable from the first moment that you walk through our doors. To request an appointment, click this link and follow the simple instructions: Portland, OR bankruptcy lawyer.

A Look at Bankruptcy and Child Support

Many people paint with a broad brush when they think about bankruptcy. The assumption is that you get a fresh start and all of your debts are discharged when you file for bankruptcy. While this is generally true, the matter is much more complicated.

First of all, there are different forms of bankruptcy. Most individuals who are experiencing financial difficulties will file a Chapter 7 or a Chapter 13 bankruptcy. A Chapter 7 is a liquidation bankruptcy, and unsecured debt such as medical bills and credit card balances can be discharged if you file this type of bankruptcy. Plus, when you file for Chapter 7 or 13, you get an automatic stay as soon as you file. This prevents creditors from taking actions to collect on debts while the stay is in effect.

Child support falls under an entirely different category. The stay does not apply to ongoing child support. If you acquire property, including income, after you file, it will be outside of your bankruptcy estate. As a result, your earnings can be attached to satisfy your past due child support obligations. Of course, you will also be required to make your ongoing child support payments. Though your child support responsibilities will not go away if you file for Chapter 7, it may be easier to meet them, because other debts will be discharged.

A Chapter 13 is a reorganization bankruptcy. You maintain possession of your property when you file, and you agree to make manageable payments to your creditors. Your disposable income is used to make these payments and there is a priority to which creditors get paid first. Back child support has a high priority, so it will get paid before general creditors. The bankruptcy repayment plan will be designed to correct your child support arrears, and you will be required to continue to make timely payments as they become due.

Schedule a Free Case Evaluation

We have offices in many different cities throughout the state of Oregon, including Portland and Eugene, and we have locations in Vancouver and Tacoma, Washington. Our firm offers complementary consultations, and we will be more than glad to sit down with you to discuss your case. If you are ready to take action, we can be reached by phone toll-free at 1-800-682-9568.

Feeling at Ease With Your Bankruptcy Attorney

Money matters are sensitive and personal, and there are not too many people that are anxious to discuss their financial affairs with someone they have just met for the first time. This is certainly a prudent way to conduct yourself, but the “close to the vest” approach can have a downside if you are having financial difficulties. A bankruptcy attorney can guide you toward an effective debt management solution, but you may feel a bit uncomfortable asking for help.

This is understandable and it is human nature, but you don’t have to be concerned. Our bankruptcy law firm has been assisting people for more than three decades, and we have worked with tens of thousands of clients in Oregon and Washington. Given our vast experience, there is no scenario that we haven’t seen before, and we always go the extra mile to make our clients feel comfortable throughout the whole process.

We get to know our clients, we put them at ease, and we answer all of their questions in a thorough but down to earth and understandable manner. For some individuals, a Chapter 7 liquidation bankruptcy will be the best choice. With this form of bankruptcy, unsecured debts are discharged entirely, and you can usually maintain ownership of your home and your car if you are up-to-date on the payments. Other people will be better served by a Chapter 13 reorganization that allows a person to make payments over time until the debts are paid or discharged.

Our firm offers free case evaluations, so you have the opportunity to meet us and get to know your bankruptcy attorney before you make any firm commitments. This is a simple but effective way to break the ice, and we also make personal interactions quite convenient for people in many different parts of Oregon and Washington. We have offices in Portland, Eugene, Medford, Grants Pass, Coos Bay, Tigard, Bend, Klamath, Salem, Vancouver, and Tri-Cities, so you won’t have to travel very far to get sound legal counsel. If you will like to take the first step toward a comfortable financial future, send us a message through our contact page to request a consultation with a licensed OlsenDaines bankruptcy attorney.

Can Bankruptcy Prevent Utility Shut-Offs?

If you are in danger of losing your gas, electric, and/or water services because you have fallen behind on your bills, can you file bankruptcy to stop the utility companies from shutting off your services? This is a good question, and we hear it quite frequently when we consult with clients in Medford, Eugene, Portland, Bend, and the other cities that we serve. Unfortunately, the answer is a less-than-definitive yes and no.

A Chapter 7 bankruptcy is a liquidation bankruptcy, which means that unsecured debts can be wiped away if you qualify and you file successfully. You get an automatic stay when you file for this type of bankruptcy, which freezes creditors in their tracks while the process is underway. They can no longer try to collect on unpaid unsecured debts. Utility bills are unsecured debts and can be eliminated in a chapter 7 or 13.

Utility companies cannot cut off your services immediately after you file, but you only have 15 days to provide them with “adequate assurance” that you will be able to pay your bills going forward. This usually equates to paying them a deposit of twice your average monthly bill. If you fail to comply with this adequate assurance provision, they can indeed suspend your service. Conversely, if you do meet the requirement, shut-offs are prohibited, and this remains intact when your outstanding utility balances are discharged when the bankruptcy is finalized.

We should point out the fact that bankruptcy is not your only option if you want to take action to prevent utility companies from terminating your service due to unpaid bills. In Oregon, if a health care condition is present, a medical certificate can prevent disconnections for a limited period of time. Utility companies also offer deferred payment plans for people who are experiencing financial hardships that can prevent service terminations.

If you are concerned about a loss of utility services and other negative consequences that can come about as a result of mounting financial problems, we are here to help. We have been providing bankruptcy assistance in this area for more than three decades, and we provide each and every one of our clients with personalized attention. Our firm offers free initial case evaluations, and you can set up an appointment right now if you call us toll-free at 1-800-682-9568.

Prevent Collection Calls Before They Happen

There are few things more annoying and disconcerting than collection calls from aggressive credit card companies or debt collection agencies. As a bankruptcy law firm that provides debt counseling, we often hear stories from our clients about the tactics that are utilized, and many of them are actually illegal. Before we get into the things that you can do to protect yourself if you are being overwhelmed by collection calls, let’s take a look at some “rules to live by” that you may want to utilize to steer clear of problems with creditors.

Monitor Your Credit Report

You should always have a firm understanding of your current standing in the eyes of the credit reporting agencies. If you understand how credit scores are calculated and you know where you stand at all times, you are more likely to develop sound habits when it comes to credit utilization. There are a number of different websites on the Internet that provide credit scores or credit reports, and some of them are free. In fact, the major credit bureaus are required to provide a free credit report to anyone who requests one every calendar year. Plus, many credit cards now offer free credit scores to cardholders.

When you get your score, you can see the factors that contribute to the calculation. This knowledge can help you shape your credit usage. The length of time you have had credit is one factor, and your credit utilization ratio is an important determinant. Of course, timely payments are very important, and there is another piece of information that the bureaus use that catches many individuals by surprise. People with good credit are barraged with offers of additional lines of credit from every direction. It can seem as though you have nothing to lose if you apply for a credit card because you will get free shipping on an item, or a $50 credit on a plane fare purchase, or 6-months no interest or some other benefit. In fact, your credit score takes a hit every time you apply for an additional line of credit, even if you are approved. And your credit score will be lower if you have too many open cards even with zero balances.

Know Your Rights

If you stay abreast of your credit standing and you live within your means, you should be able to keep your credit card debt at a manageable level. Sometimes people make financial mistakes. Sometimes people who have very sound financial habits end up with overwhelming credit card balances due to circumstances that are out of their control, like medical expenses or unforeseeable living expenses.

Fortunately, you have rights under The Fair Debt Collection Practices Act (FDCPA) that you can exercise if you are receiving collection calls. There are legal guidelines that collectors must abide by with regard to the things that they do and say, and harassment is illegal. You can sue a collector who is crossing the line, and creditor harassment is an area of specialization for our firm. For example, under this law, you can send the collectors a letter letting them to never contact you again or to only contact your attorney, and they are required to comply. The only exception is contacting you to give you a summons for a law suit.