A chapter 13 filing is also known as a wage earners plan. It allows for individuals with regular income to create a plan for the repayment of debt over time, usually 3 to 5 years. During this time, the petitioner is protected from new or ongoing collection efforts from creditors. One major advantage to chapter 13 filings is that it allows individuals to prevent their house from being forclosed on. It gives them time to repay delinquent mortgage payments over an extended period without losing thier home. Chapter 13 also functions as a debt consolidation, with a trustee receiving all payments and distributing them to creditors according to the repayment schedule.
An individual may file chapter 13 in Oregon, even if they are self employed or operating an unincorporated business with unsecured debts under a limit of $336,900 and secured debt of around $1 mil. In addition to a petition for chapter 13, in Oregon the petitioner must file several supporting documents including a schedule of assets and liabilities, a schedule of income and expenses, a schedule of contracts and leases and a statement of financial affairs. Married petitioners must include information regarding their spouses even if their spouse is not filing bankruptcy. Filing chapter 13 begins a stay of foreclosure on the petitioners home.
Due to complex nature of chapter 13 filings, we strongly suggest that Oregonians consult with an experienced chapter 13 bankruptcy attorney. To find a have an experienced local lawyer contact you for a free chapter 13 bankruptcy consultation.
Note: This site is meant as a general information resource only. Please consult professional licensed advisors for any guidance as to your unique situation.