Chapter 13 Bankruptcy
If you find it impossible to meet all your debt obligations, Chapter 13 bankruptcy might be the answer. Unlike liquidation, this “reorganization” allows you to keep ownership of your property. A notable benefit is the automatic stay, providing temporary relief by requiring creditors to halt collection attempts during the reorganization process (with some exceptions). If you’re considering Chapter 13 Bankruptcy, OlsenDaines attorneys are ready to assist. With offices across Oregon and Washington, we provide free, no-obligation consultations to guide you through the process. Call us today to schedule your bankruptcy consultation!
What Is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is a form of reorganization bankruptcy where your income is used to repay a portion of your debts over time. When filing for Chapter 13, you need to demonstrate sufficient income to maintain reorganized payments and propose a payment plan. Having a Chapter 13 bankruptcy lawyer, such as OlsenDaines, is crucial due to specific rules, including the full payment of priority debts like:
- Back Spousal Support
- Delinquent Child Support
- Mortgage Arrears
- Vehicle Payments
Unsecured debts like credit card balances may not require full repayment, depending on disposable income after addressing priority debts. The structured payment plans typically last 3 to 5 years, varying based on individual circumstances.
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Chapter 13 FAQ
Chapter 7 bankruptcy is for those with significant unsecured debts, involving the potential sale of non-exempt assets and a quicker process. On the other hand, Chapter 13 bankruptcy, designed for individuals with a regular income, allows debtors to retain their property by creating a 3-5 year repayment plan. The choice depends on factors like income, asset preferences, and the desired timeline for debt resolution.
Determining eligibility for Chapter 13 Bankruptcy is often accessible for most individuals. However, those with exceptionally high debt may face limitations due to specific debt thresholds. As of 2019, the secured debt limit, covering items like motor vehicles and real estate, stands at $1,257,850, while the unsecured debt limit is $419,275. It’s important to note that these limits may change every three years. If your debt surpasses these thresholds, an alternative option is to explore Chapter 11 Bankruptcy. Call today to speak with one of our Chapter 13 bankruptcy lawyers.
Considering Chapter 13 Bankruptcy due to foreclosure concerns? Explore an alternative by reaching out to your lender for a potential mortgage loan modification. This could involve interest rate reduction, converting from a variable to a fixed rate, or extending the loan term to make your monthly payments more manageable. We can assess your situation and help you navigate towards the most suitable solution based on your circumstances.
Considering Chapter 13 Bankruptcy? Whether ineligible for Chapter 7 or preferring a structured repayment plan, Chapter 13 may suit your needs. Filing offers benefits such as an automatic stay, property retention, and gradual debt repayment. If you’re considering this option, OlsenDaines’ experienced Chapter 13 bankruptcy attorneys, located across Oregon and Washington, are ready to assist. Schedule a free consultation by calling us or filling out our online form to explore how Chapter 13 can help relieve your debt burden.
No, Chapter 13 Bankruptcy does not eliminate all debt. It involves creating a structured repayment plan to pay back a portion of your debts over time, typically lasting 3 to 5 years. After successfully completing the plan, any remaining eligible debts may be discharged, but some debts, such as certain tax obligations and domestic support obligations, may still need to be paid in full. Call us today for a free consultation!
Benefits of filing Chapter 13 Bankruptcy include an automatic stay on creditor actions, the ability to retain property, and the opportunity to create a structured repayment plan to manage debts over time. Call the team at OlsenDaines today for more information.