Your Bankruptcy Options

In the unfortunate situation that you might need to seek the protection offered by the bankruptcy laws, our lawyers will help you navigate the bankruptcy court. We offer advice regarding whether bankruptcy is a viable option and, if so, the advantages and disadvantages of filing different types of bankruptcy. When suffering financial stress, many individuals run into confusion when trying to understand the available options. Multiple forms of bankruptcy exist, but the two most common and the two most useful to individuals and families are chapters 7 and 13 of the United States Bankruptcy Code. Read below about these two forms of bankruptcy law to gain a better understanding of potential options:

Chapter 7: Eliminate Your Debts

This is what most people think of when they think of bankruptcy. Chapter 7 Bankruptcy allows you to eliminate your debts and start fresh. A few types of debts exist that even a Chapter 7 does not erase, such as some taxes, alimony and support, and most student loans; however, it does eliminate the vast majority of regular debt.  A Chapter 7 Bankruptcy is a relatively simple process and can be a valuable tool to ease the burden of debt.  Most people who file this way are able to keep their possessions, such as household items and personal belongings, and may usually keep their cars and house as well.  Please contact us at (503) 990-7260 to determine if this is a good option for you.

Chapter 13: Slowly Pay Off Your Debts

This is a good chapter to use if you are behind on house payments because it will stop foreclosures. It is often a good option if you have state and federal taxes. When filing a Chapter 13, you determine how much money you need to live on each month, and the remainder of the money is used to pay your debts. Those payments are made for three to five years.  At the end of that time, your debts are erased. This option allows you to pay what you can afford, not what creditors demand. Read below to understand the benefits of filing a Chapter 13 or contact us at (503) 990-7260 to discuss this option in more detail.

Benefits of Filing Chapter 13

Chapter 13 protects you from creditors while you prepare a plan to modify your debts. You can stop foreclosure and take from three to five years to catch up on past-due mortgage payments. With this option, you can avoid car repossessions. You can also stop garnishments, other repossessions, and creditors’ phone calls. Income Taxes and other taxes that are past due can be spread over a three- to five-year plan. In short, you can take the all your debts and make one payment each month to pay all creditors according to your approved plan. Generally, you can pay as little as necessary to make the debt manageable. The debts that can be covered in your plan include the following:

  • Taxes
  • Past-due Mortgage Payments
  • Medical Bills
  • Loans
  • Child Support
  • Charge Accounts
  • Bank Card Charges
  • Debts Incurred Through Misrepresentation
  • Government-insured Student Loans

Again, these options exist among other various forms of bankruptcy. Please contact us at (503) 990-7260 if you would like to speak more about bankruptcy or if you have any other questions. Additionally, you can file a form at the bottom of any page on our site to send us an email. Our bankruptcy lawyers in Salem, Oregon look forward to hearing from you and helping you solve your bankruptcy needs.