Chapter 13 Bankruptcy

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If you have concluded that it is impossible for you to meet all your debt obligations, Chapter 13 bankruptcy may be the solution. This form of bankruptcy is a “reorganization” rather than a “liquidation,” because you retain ownership of all your property when you successfully file a Chapter 13 bankruptcy. One very appealing benefit that can provide temporary relief is the automatic stay. While the reorganization is underway, creditors are required to suspend their collection attempts (though there are some exceptions to this rule.)

If you would like to file for Chapter 13 Bankruptcy, the attorneys at OlsenDaines are here for you. We have offices all throughout Oregon and Washington. We offer free no-obligation consultations.

What is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is a reorganization bankruptcy. With a Chapter 13, you are required to use your income to repay your debt, or a portion of your debt, over time. When you file for Chapter 13 Bankruptcy, you must provide proof that you have sufficient income to keep your reorganized payments current, and you present a payment plan proposal. A bankruptcy attorney from OlsenDaines can be of great assistance during this phase of the process because there are very specific rules. One stipulation is that priority debts must be paid in full. These would include secured debts like:

• Back spousal support
• Delinquent child support
• Mortgage delinquencies
• Motor vehicle payments

Unsecured debts like credit card balances and unpaid medical bills may or may not be paid back in full. The portion that you will be required to pay will depend on the amount of the debts in relation to the disposable income that remains after your priority debt payments are made. Payment plans are structured to last for 3 to 5 years; the exact duration will depend upon the circumstances.

Do I Qualify for Chapter 13 Bankruptcy?

Most people will qualify for Chapter 13 Bankruptcy. However, if you have a very high amount of debt, you may not qualify because there are debt limits. The Chapter 13 debt limit for secured debt, like motor vehicles and real estate is $1,257,850 while the limit for unsecured debt limit is $419,275 ( as of 2019, the limit amounts typically change every three years). If you exceed these debt limits, another option is to file for Chapter 11 Bankruptcy.

Chapter 13 Bankruptcy for Mortgage Loan Modification

If you are thinking about a filing for Chapter 13 Bankruptcy because you are concerned about an impending foreclosure, you may have another option. You could contact your lender and ask about a potential loan modification. An interest rate reduction, a conversion from a varying rate to a fixed rate, and/or a term extension could bring your monthly payment down to an affordable level. We can evaluate your situation and guide you toward the solution that is right for you given the circumstances.

File for Chapter 13 Bankruptcy

Whether your ineligible for Chapter 7 Bankruptcy or you would like to repay your debts using a repayment plan, Chapter 13 Bankruptcy may be a great option for you. When you file for Chapter 13 Bankruptcy:

• • An automatic stay is granted
  • You can keep your property
  • Your debts are paid back over time

If you’re interested in filing for Chapter 13 Bankruptcy, contact OlsenDaines. We have offices located all throughout Oregon and Washington with experienced bankruptcy attorneys ready and willing to help you relieve your debt. To schedule your free, no-obligation consultation with one of our attorneys simply call us or fill out our online form!

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