|Good reasons to file Chapter 13 Bankruptcy
1. Stop the foreclosure on your home
In bankruptcy, an automatic bankruptcy stay goes into effect that prohibits any collection action against you, including stopping a foreclosure. Any mortgage payment arrearages (i.e., past due payments) will be paid back through the 3 to 5 year Chapter 13 payment Plan. Those arrearages will get paid through the Chapter 13 Trustee from the regular monthly payments you make to the Trustee.
2. Strip off wholly unsecured liens on your home
If the value of your house is less than one or more of your junior liens (for instance a 2nd or 3rd mortgage, or Home Equity Loan) on your home, then there's a possibility that one or more of the junior liens can be stripped off (eliminated completely!). The junior lien must be wholly unsecured... meaning there is not enough equity in the home to pay not one $1.00 towards that junior lien if the house were sold or foreclosed. For example: Say you own a house worth $250,000 and you have a $300,000 first mortgage. In this situation, you can strip any liens that are junior to your first mortgage. So if you had a second mortgage with a balance of $100,000, you can get rid of it through lien stripping in a Chapter 13 bankruptcy.
3. Cure tax problems or a child/spousal support obligations
Non-dischargeable taxes or child/spousal support obligations can be paid through a Chapter 13 plan over 36 to 60 months depending on the plan length for your case. The Chapter 13 will keep the tax authorities and domestic support obligation authorities off your back (i.e. they cannot collect) while you are in Chapter 13 bankruptcy, and it provides you the breathing room for you to pay those debts off.
4. Stretch out your auto or other secured debt payments & propose a reduction in the interest rate
In a Chapter 13 bankruptcy you can spread out your vehicle payments or other secured debt payments (e.g., secured furniture, computer, jewelry, tires, etc.) over the life of your 3 to 5 year Chapter 13 payment plan. The interest rate can be reduced to a lower rate if you have a high rate of interest. Further, if you are behind on your secured debt payments, any arrearages can be paid through the Chapter 13 plan, which would allow you to get current with your payments.
5. Generally, keep non-exempt property
In most Chapter 13 bankruptcy cases, people are able to keep non-exempt assets (those assets not protected by the law) that normally could have been taken if the person had filed a Chapter 7 bankruptcy. Keep in mind there are exceptions to this which are fact dependent.
6. Reinstate your driver's license and eliminate traffic fines If your driver's license is suspended because of unpaid fines a Chapter 13 Bankruptcy filing will allow you to reinstate your driving privileges usually within two or three days of filing your bankruptcy case. You must have a source of income and make payments to a Chapter 13 Plan. At the end of the 3 to 5 year Chapter 13 case all of your dischargeable debt (with few exceptions) is discharged, including traffic fines, and you will no longer be liable to pay it. Also, because the infraction fines are discharged your driving privilege will no longer be suspended because of them. If your driver's license is suspended because of an uninsured accident either a Chapter 7 or Chapter 13 case will allow you to reinstate your driving privilege within just a few days of filing your case.
7. Other good reasons to consider filing Chapter 13 Bankruptcy besides the ones described above. Some people utilize Chapter 13 bankruptcy as a tool to get protected from the creditors temporarily. Once that person gets his/her business or financial situation in order and no longer needs the protection of bankruptcy, he/she voluntarily dismisses the case.
|Benefits of Chapter 13 bankruptcy:
Stop: Foreclosure, Garnishments, Lawsuits, Collections, and Repossessions
Protect Your: House, paycheck, bank accounts, auto, etc.
+ Chapter 13 bankruptcy will protect a Debtor (i.e., the person filing bankruptcy) from his creditors while he pays back his creditors what he can afford from his household budget over a 3 to 5 year payment plan. A very powerful injunction called the "Bankruptcy Automatic Stay" prohibits any collection activity against someone in bankruptcy during the entire process. There are some exceptions to this. The Chapter 13 bankruptcy is called a "Reorganization" bankruptcy as the Debtor organizes his finances through a court -supervised repayment program that all creditors have to comply with under the bankruptcy law.
+ In a Chapter 13 bankruptcy, a Plan will be created which will dictate how creditors will get paid. The Debtor will make one payment to the Bankruptcy Trustee each month based on what he can afford out of his monthly budget (called your monthly disposable income). The monthly Plan payment is usually the same amount each month for a typical plan. However, the plan payment amount can vary if one's income is seasonal. The Debtor's monthly budget consists of his net ("take home") income compared to his monthly household expenses not including the debts he is trying to get rid of in the bankruptcy. Then the Bankruptcy Trustee will take the Debtor's monthly payments and distribute that money back to the creditors according to the terms of the Chapter 13 Plan that's been approved by the Court.
+ Chapter 13 bankruptcy can sometimes reduce the loan amount and interest rate on secured debts like an auto loan or other loan (this is called a "cram down").
+ Chapter 13 can strip off a wholly unsecured lien off a primary residence. When the value of a house is less the liens against it, there is a possibility to strip off any junior lien (i.e., a 2nd, 3rd, HELOC etc.).
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Beaverton, Oregon 97005
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Parking is free.
Handicap access and elevators are available through the ground floor lobby.
1001 SW 5th Ave., Suite 1100
Portland, Oregon 97204
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Located on the 11th floor of the CONGRESS CENTER Building, a 23-floor black glass office building in downtown Portland (the same building as the Bankruptcy Court), located the block directly west of the Multnomah County Court House and only one block east of the Arlene Schnitzer Concert Hall. It's located conveniently near Interstate 5, Interstate 405, and Hwy. 84. The cross street is SW Main.
WE VALIDATE PARKING at these two PMC parking garages: CONGRESS CENTER Parking Garage (directly WEST of the building across the street) and the METROPOLITAN Parking Garage (directly NORTH of the building across the street).
METERED PARKING: Look for at least a 90-minute or higher limit parking meter. Better availability for street parking is 2-3 blocks west of the building near the park blocks (by the Portland Art Museum).
Max Light Rail and Portland Street Car are convenient options to get downtown while avoiding traffic and parking. Please visit www.trimet.org and click on "Maps and Schedules" to see how convenient it is.
If traveling from North Portland, the Max YELLOW (North) line starts at the Portland Expo center right near the I-5 bridge between Vancouver and Portland. Get off either at Pioneer Square at Yamhill & Broadway (a 2 block walk) or Madison & Broadway (a 1 block walk).
If coming anywhere east of Downtown, the Max GREEN (SE), BLUE (East), RED (NE), and BROWN (inner SE) lines provide easy access to downtown. Get off at Pioneer Square at Morrison & 6th (a 3 block walk).
4400 NE 77th Avenue, Suite 275
Vancouver, Washington 98662
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Conveniently located in central Vancouver, the ELW Building, is a 3-story modern brick office building. The office is located right near the Vancouver Plaza and the Westfield Vancouver Malls. The office is located right off State Route 500 with easy access from the I-5 and I-205 freeways.
Parking is free.
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The information found in this site is offered for informational purposes only; it is not offered as and does not constitute legal advice, nor is an attorney-client relationship established by visiting this website, by sending or responding to an e-mail, or by any other online communication method.
The Law Offices of Scott M. Hutchinson are located in Beaverton and Portland, Oregon. An office is planned for Vancouver, Washington in the future. Attorney Scott M. Hutchinson of Hutchinson Legal Service, P.C. is licensed to practice in the States of Oregon and Washington. Mr. Hutchinson also licensed to practice in the Bankruptcy Federal Districts of Oregon, Western Washington, and Eastern Washington. Bankruptcy is our focus. We file both Chapter 7 bankruptcies and Chapter 13 bankruptcies.
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