After filing for bankruptcy, a debtor will receive a Notice of Appointment of Trustee from the court which provides the name, address, and phone number of the trustee. The Notice may also include a list of any financial documents the trustee wants copies of, such as bank statements, canceled checks, and tax returns, and the date by which they are due.

Administers The Bankruptcy Estate and Property

Filing for bankruptcy lumps all of the debtors assets and debts into an entity known as the bankruptcy estate. In a Chapter 13 case, the trustee manages all claims (debts) that relate to the estate. That means all property owned before filing is under the supervision of the bankruptcy court. Don’t throw out, give away, sell, or dispose of any property until the bankruptcy trustee can approve the transaction.

If a debtor receives certain kinds of property (or become entitled to receive it) within 180 days after filing for bankruptcy, it must be reported:

• Property inherited or entitled to inherit.
• Property from a marital settlement agreement or divorce decree.
• Death benefits or life insurance policy proceeds.

If any of this property is nonexempt, the Plan may need to be modified to ensure unsecured creditors are paid the right amount.

Collects Proof of Insurance

If a debtor plans to make up the payments on secured debts like mortgage and automotive loans, they may have to provide proof that there is adequate insurance on the collateral. This requirement protects the creditor if the collateral is destroyed or damaged.

Collects Payments

Many trustees require the first payment be made by cashier’s check or money order and will not accept personal checks or cash. Debtors will need to make the first payment within 30 days of filing the bankruptcy petition. Making the first payment demonstrates the debtor can make the payments outlined in the Plan. If not, the bankruptcy court can move to dismiss the case, or deny confirmation of the Plan. While Plan Payments are normally taken directly out of a debtor’s paycheck, if the payment does not come out, the debtor will need to make sure to make the payment directly.

Except under extraordinary circumstances, Chapter 13 Trustees will almost always insist on collecting payments directly through wages. Either the attorney or the trustee will file a wage order shortly after the case is filed so that payments are made on time. Again, if the payment does not come out, the debtor must make sure to do so on their own.

Attends The Creditors Meeting

Debtors must attend the creditors’ meeting and answer questions under oath from the creditors and the Trustee regarding finances and the proposed terms of the plan. They also questions the Debtor to make sure that the information submitted is accurate. In negotiating a Plan Payment, the Trustee may attempt to verify or challenge projected expenses that appear high or unreasonable.

Attends The Confirmation Hearing

After the creditor’s meeting, the bankruptcy judge will hold a confirmation hearing, and either confirm or deny the Plan. The confirmation hearing must be held twenty to forty-­five days after the creditors’ meeting.

The Trustee appears at the Confirmation Hearing and report to the Court whether they approve of or disapprove of the Plan. If additional time is needed to meet the Trustee’s requirements, the hearing may be reset to a later date so that the Trustee’s objections as well as those of the creditors can be met. If the Plan needs to be drastically revised in a way that warrants giving additional notice to creditors, the Plan may be denied and the debtor’s attorney may be given a certain amount of time to file a new Plan.

Once the Plan is confirmed an Order Confirming Plan is entered by the Court.

Fulfillment Of The Court Order

Once that Plan has been approved (or confirmed) by the Court, the Court orders that the reorganization happen as the Debtor proposed (unless the Debtor later requests that the Plan be modified). The Chapter 13 Trustee obeys the Order of the Court.  They ensure the Plan effectively organizes the financial affairs of the Debtor and the Creditors get paid in the way the Plan contemplated.

The Trustee is also responsible for preventing abuse and fraudulent activities relating to the disbursal of a debtor’s estate. If all of the needs are fulfilled at the end of the case, the Chapter 13 Trustee files a report with the Court and recommends that a discharge of any remaining debt be entered.

Advocating For The Debtor

Despite the trustee’s interest in a debtor’s finances, the financial relationship is not as stifling as it may sound. The Trustee acts as an advocate of the debtor by ensuring that any professional costs associated with liquidation and disbursement are reasonable and that creditors avoid harassing the debtor after the court has implemented an automatic stay. They have the power to refer violations of the law to the United States Trustee’s Office and therefore acts as a custodian of good faith for the bankruptcy arrangement. By following the terms of the Plan, debtors should still have a substantial amount of control over their money and property acquired after filing.

The original post is titled What Does The Trustee In A Chapter 13 Bankruptcy Do? , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Chapter 13 bankruptcy helps debtors get themselves out of a deep hole, but it doesn’t cure all of your debt problems. Chapter 13 payment plans can be extremely difficult to uphold. One slip-up in your life and payments are delayed.

Unforeseen expenses, job loss, health difficulties or other unplanned life events can make Chapter 13 just as difficult as being buried in debt without the bankruptcy protections. But all is not lost. Provision 11 U.S.C. § 1328(b) allows you to file a motion with the bankruptcy court known as a hardship discharge.

What is a hardship discharge?

A hardship discharge can allow you to receive an early discharge from some of your debts. But there are some strict requirements in making a case:

1. You don’t have the ability to complete payments due to circumstances “for which you should not justly be held accountable.” The goal is to show the maximum possible misery in which the circumstances will not change. Temporary job loss or disability normally isn’t enough to make a case. Medical evidence that proves permanent injury or other circumstances like death and separation might also work.
2. A modification of the Plan will not fix the problem. For temporary problems, the Plan can be extended or temporarily lowered. The aftermath of the Katrina hurricane provided the conditions in which thousands of people wouldn’t have benefitted from a short term fix.
3. Based on what you’ve already paid into the plan, the unsecured creditors received as much as they would have if you had filed a Chapter 7 instead. If you don’t own a house, or the house has no equity, this condition can be easily met. If you have equity, it might be difficult to meet this condition.

Not all debts are discharged

Only unsecured, non-priority dischargeable debts can be discharged, so there are many exceptions you need to know prior to filing. To successfully file a motion for hardship discharge, you need an attorney. If you qualify, you can convert your case into a Chapter 7 or dismiss your Chapter 13 and file a new case. In some cases, a hardship discharge might be the solution you need, but you may not meet the requirements.

The original post is titled A Hardship Discharge For Your Bankruptcy Payment Plan , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

The United States Bankruptcy Court District of Oregon recently published a video of a creditors meeting (video can be viewed in Quicktime).

The 341 Meeting Overview

Filing for bankruptcy means making at least one appearance for the case. Within a couples weeks of filing, you will receive a Notice of Commencement of Case from the Court. The notice sets the date and time for the meeting of creditors, normally around 30 days after the filing. The meeting of creditors is also known as the “341 meeting” after the bankruptcy code that made the meeting required.

Getting There

Plan for 2-3 hours of the day in addition to travel time. Find out where the court house is and make sure you understand the directions to get there. You do not need to dress up.

In the courthouse, you will probably spend some time getting through security. The exceptions to this rule are Portland and Salem, Oregon where you can still walk straight to your meeting. Many federal buildings have metal detectors like airports, but they are more sensitive. The items you carry must go through an x-ray scanner. Anything not allowed into the courthouse will be confiscated and returned upon leaving.

Don’t Sweat It

The trustee assigned to the case will ask questions about your bankruptcy schedules. Most often, debtors worry about the questions that might be asked, but they shouldn’t fret. The purpose of the meeting is confirming information and fact finding. As long as the debtor appears at the meeting and answer the questions honestly, everything will be alright.

Most 341 meetings are short and uneventful. Debtors do not have to justify filing bankruptcy. Nothing is won or lost. Creditors do not have to attend the 341 meeting to file a claim or object to discharge so they rarely show up.

If new facts come out at the meeting, the trustee or a creditor can file a motion or an adversary proceeding in the bankruptcy court for the judge’s consideration. All facts that play into the bankruptcy should be ironed out with an attorney before the meeting.

The Creditors Meeting

There will probably be many other debtors scheduled for the meeting at the same time. It’s normal for 10 or more cases to be heard in an hour. The schedule will be posted outside of the door. If your name is at the top, you will probably be called sooner than the others, but having to wait isn’t a total loss.

Waiting for other cases gives debtors the opportunity to observe other people at their meetings.  This experience can provide an advantage. You will know what to expect, where to stand, and maybe even what to say. If you’re nervous, watching other cases will probably help you calm down.

When your name is called, you will be asked to sit at a table near the front of the room. The trustee will swear you in and ask your name, address, and other identifying information. To confirm your identity they will ask to see your photo ID and proof of Social Security number.

The trustee will briefly go over your forms with you and ask a few questions. Your answers should be truthful and consistent with your bankruptcy papers. The trustee is mostly interested in the fairness of your plan (that is, that it treats all similarly situated creditors the same) and your ability to make the payments that you have proposed.

Concluding The Meeting

When the trustee is finished, any creditors who showed up will have a chance to question you. Secured creditors like your mortgage lender might come, especially if they want to contend that the value you assigned to the collateral is wrong. Unsecured creditors rarely appear.

At the end of the hearing, your attorney will acknowledge the concerns voiced by the trustee. The meeting of the creditors is just the beginning of the negotiations that will ultimately culminate in your case’s confirmation a month or two later.

The original post is titled What Happens At A Creditors Meeting? , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Under Chapter 13 in both Oregon and Washington, you can reclassify second and third mortgages that aren’t secured by your home’s value into unsecured debts. The reclassification means you only have to pay a portion of them. In most cases, you end up paying pennies on the dollar before getting rid of them entirely.

Like many homeowners, you may have more than one mortgage on your home. 80-20 financing arrangements give people money to contribute to a down payment or homeowners open up a line of credit with their home equity. Either way, many people end up with one primary mortgage and other, smaller mortgages.

Additional mortgages can lead to big debts that people struggle to pay off every month. But as long as the home’s value continues to appreciate, the fight to keep up with payments might be worth it. After all, the expenditure is still an investment. But when a house decreases in value, the benefit of investment vanishes.

Missing payments on any of your mortgages results in penalties and added interest. The burden can become insurmountable quickly. The situation becomes even worse when a mortgage lender tries to foreclose on your home. Luckily, you have options.

How does Chapter 13 help?

Minimizing the debt burden of your second or third mortgages by stripping them off your home or rental property would probably make it a thousand times easier for you to pay down the primary mortgage. Filing Chapter 13 bankruptcy can provide you with the opportunity you need to prevent foreclosure so you can make your primary mortgage payment while minimizing the impact of your other mortgages.

Since your home’s value is no longer securing the other mortgage debt, Chapter 13 allows you to reclassify the debt as unsecured. Under Chapter 13, unsecured debts are repaid based on the amount of disposable income you have, not the total amount of debt at large. This means you can not only get reduce the second mortgage to an unsecured debt, but pay back next to nothing on it through your Chapter 13.  If you would like to learn more about how Chapter 13 can save you from your mortgages, give us a call today. We’ll be glad to help.

The original post is titled Chapter 13 Can Help You Pay For A Depreciated Home , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Debtors who file for Chapter 7 bankruptcy aren’t necessarily off the hook. Some liens and debts can survive the Chapter 7 filing or problems can pop-up after filing that change the circumstances of bankruptcy, life happens.

Debts like taxes, school loans and mortgage servicers can remain a problem since they aren’t discharged. And besides non-discharged debts, unplanned events can also impact your life. A medical emergency, divorce, or job loss has the potential to eliminate the positive effects of a prior bankruptcy. Many people who file for Chapter 7 need another chance at debt relief.

How can Chapter 13 help?

Chapter 13 is a repayment of a portion or all of your secured and unsecured debts over a period of 3 to 5 years. It is meant to allow people facing financial hardship to make smaller payments each month in order to control their debt load and minimize the consequences of delayed payments.

A monthly payment that lumps all of your debts is sent to a trustee who will distribute the money to your creditors. If you file Chapter 13 within four years of filing Chapter 7, you cannot discharge your debts. But you can still file the Chapter 13 to keep creditors from suing you, foreclosing, garnishing your paychecks or levying your bank account.

If you file Chapter 13 four years after filing Chapter 7, you can have a very low monthly Chapter 13 payment plan and receive a full discharge of all remaining balances after you complete the 3 to 5 year plan.

When Chapter 13 isn’t an option

There are some circumstances in which Chapter 13 isn’t an option. If you had a bankruptcy case dismissed within 180 days because of a failure to appear in court or you still owe more than $360,000 in unsecured debts or $1 million in secured debts than you can’t file for Chapter 13 bankruptcy.

If you are unsure of whether you have the ability to benefit from an additional bankruptcy filing, contact us today and we’ll be glad to help.

The original post is titled Still In Debt After Chapter 7 Bankruptcy? , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Oregonians have a newly founded disadvantage in recovering from their credit card debt. Instead of applying the 3-year statute of limitations for collecting on credit card debt from creditors based in states with a 3-year statute of limitations, the Oregon Court of Appeals extended the applicable limitation to Oregon’s own 6-year statute of limitations, effectively giving all the credit card issuers another three years to collect from Oregon consumers.

Adding Insult To Injury

The extension is sure to affect thousands of Oregonians, but it goes even further. Creditors who are normally limited to a 3-year timeframe in their home state aren’t bound by their state’s laws. That means out of state credit card companies can sue debtors in Oregon because of the new statute of limitations.

Credit Card Company Lawsuits

Some credit card companies steer clear of lawsuits because they are costly. Forcing a debtor into bankruptcy may result in receiving much less than it costs to sue. Instead of attempting to recover money in court, they hand off the debts to collection agencies or negotiate a settlement.

If a credit card company does decide to sue, some of them always will, you might end up owing the debt plus interest, penalties, court costs, and attorney fees. Depending on the state, that can be done through levying paychecks, garnishing bank accounts, or both.

How To Defend Yourself

If you are sued and the creditor receives a judgement, it will be on your credit report for 7 years from the time of filing. So if you receive a summons, it’s imperative to get in touch with a debt relief lawyer. They will help you reply to the summons and minimize the potential damage the process can have on your financial future.

Since the statute of limitations has been extended, Oregonians can’t relax after three years. The best way to prevent a potential lawsuit is to get in touch with us today and we’ll make sure your future is secure.

The original post is titled Credit Card Debt Lasts Longer In Oregon , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

The goal of bankruptcy is to give debtors a financial “fresh start” from burdensome debts. Bankruptcy laws give debtors the ability to accomplish a fresh start by obtaining a bankruptcy discharge. The discharge releases debtors from personal liability from specific debts and prohibits creditors from ever taking any action against the debtor to collect those debts.

In seeking a discharge, the chapter 13 bankruptcy process can be strenuous. An attorney is necessary to guide you. Chapter 13 procedures are governed by the Federal Rules of Bankruptcy Procedure, which are known to most people as Bankruptcy Rules. The majority of the bankruptcy process is conducted through the Chapter 13 Bankruptcy Trustee.

The Trustee

Administrative processes are carried out by a trustee who is appointed to oversee the case. Given the amount of administration required, the paperwork can be overwhelming. Normally, a fifty page Petition and Schedules must be prepared in order to launch the process. Prior to filing, you are required to go through a $30 online credit counseling session.

Preparing The Petition and Plan

Within 30 days of filing the petition, you must submit your first Chapter 13 Plan Payment. Your attorney should help you arrange the proper documentation and plan in order to prepare for the creditors meeting. The trustee, assigned to your case by the court, will review your proposed plan and explain the issues raised by that Plan that will need to be addressed prior to confirmation of the Plan.

Court Involvement

Roughly a month after the creditors meeting, your attorney will be required to attend a confirmation hearing in the bankruptcy court. You will not need to attend the hearing.

At the confirmation hearing, the bankruptcy judge decides whether to approve your plan or not. If a problem is found with your plan, the judge can reschedule the confirmation hearing to allow your attorney time to file a new plan. If the second hearing doesn’t result in approval, the judge has three options: 1. you may have a second chance to amend the plan, 2. your case can be dismissed, or 3. you might convert your case to a Chapter 7 bankruptcy.

After Court: The Repayment Plan

Upon approval you will continue to make your monthly payments to the Chapter 13 trustee. Making payments isn’t always easy. A layoff, medical emergency, or divorce can be enough to cause a delay in payments. If your income or expenses severely change, you may need to have your plan modified to allow for a payment that better reflects your changed financial circumstances. If things really go awry, you may qualify to have your case converted to a Chapter 7 bankruptcy or, under certain circumstances, you may simply apply for a hardship discharge.

The key to following through with a Chapter 13 repayment plan is keeping in touch with your attorney. A good attorney will help you modify your plan as necessary and take some of the strain out of the process.

The original post is titled The Chapter 13 Bankruptcy Process , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Chapter 13 can save your home from foreclosure. By giving you more time to make up for your missed payments, with no interest or penalties, you can make your mortgage more affordable and reduce your overall debt load. If the house is still too much to handle, Chapter 13 will help delay your move-out date so you have time to get your life together.

Debt Repayment Plan

If you propose a feasible debt repayment plan, Chapter 13 will provide the protection you need to save your home. While sticking with a three to five year payment plan is difficult, the opportunity to get rid of all your unsecured debt, and repay debts like back taxes, mortgage arrears and child support in small interest free payments makes it all worthwhile. When you add to that the opportunity to pay reduced amounts for your vehicles and the opportunity to eliminate second mortgages, Chapter 13 is really a great way to go.

The Home Ownership Benefits of Chapter 13

Upon filing, the Federal Bankruptcy Court issues a stay that immediately stops a foreclosure process. The court order also bars all creditors, like your mortgage lender, from making an attempt to collect debts. If they want to get through to you, they have to go through the court first.

Once a judge approves a repayment plan, the house cannot be foreclosed as long as you continue making the payments required by the plan. If you want to protect your home and need help creating a debt repayment plan, give us a call today and we’ll get you on the path to financial freedom.

The original post is titled Protecting Your Home From Foreclosure , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Financial desperation can cause people to make poor choices that cascade into even more problems. Transfers that sound like a good idea end up backfiring. Family members, spouses, and friends are often left in the wake of a financial catastrophe.

To minimize the consequences of bankruptcy and maximize the potential advantages it has to offer, you need to talk with a bankruptcy lawyer. They will let you know what to do in the time leading up to filing and help you minimize the impact it might have on family members who’ve helped you get through tough times.

Preferences and Fraudulent Conveyances

Family members are normally the first people to help in times of financial burden. If bankruptcy is inevitable, people know they are going to have some of their assets taken away to pay creditors. In desperation, debtors give their assets to family members or pay them back for the help they’ve provided.

Unfortunately, these transfers are easily traceable. Upon filing for bankruptcy, if you’ve tried to pay back friends or family members who have helped you in the prior year, you’ve shown preference. The trustee can pursue these funds. If the person who received the transfer no longer has access to the funds you provided them, they are put into an even worse position than if you never made a transfer at all.

Assets that have been transferred as gifts are also available to the trustee. In most states, anything that was given in the last two years, and sometimes up to five, can be included in the bankruptcy estate. Since people don’t want to lose property to their bankruptcy, they give it to a family member. Unfortunately, this doesn’t provide the land with any additional protection. Instead, the fraudulent transfer exposes the recipient to added risk since it can be taken away.

Talk before you act

In the face of insurmountable debt, bankruptcy lawyers will know what you should do and when you should do it. Before exposing your friends and family to unnecessary risks, talk to a lawyer. Northwest Debt Relief Law Firm will help you find the best path for regaining your financial freedom.

The original post is titled Considering Bankruptcy? Before Making A Transfer, Read This , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Filing for bankruptcy can be an overwhelming process. Besides the costs, dozens of pages of paperwork add insult to injury. The attorneys at Northwest Bankruptcy want to make the process as easy and quick as possible so we eliminated the paperwork. Rather than filing documents by hand, filling in addresses and account numbers several times over, we’ve created a simplified online questionnaire. Filing online offers a multitude of benefits over a paper process. Besides being easier and more discreet, it can also lead to more consistency and fewer errors.

When you file by hand, several factors can interfere with clarity. Errors in handwriting, translating handwriting, and increased processing time make the process longer and more drawn-out than it needs to be. Filing online alleviates these problems and allows an attorney to easily review your information.

Private, No-Hassle Filing

Without the stack of papers, the process is extremely discreet; your information is always secure and protected. Since you can access your questionnaire from any device with Internet access, you always have your vital information at your fingertips.

The paper filing process can be extremely drawn out. Once you’ve filled in your paperwork, you must hand everything to a typist who transcribes the document in its entirety. Then, you can make the appointment to get your case filed. With online filing, all you have to do is press “send.”

Personalized Access

Setting up an account is as easy as 1-2-3. The online filing process is faster and more accurate. It allows you to instantly collaborate with an attorney when answering important questions. At any time, an attorney (not a paralegal) can review your documents to ensure everything is progressing. When the information is accurate and fast, you run less of a risk of having wages garnished or bank accounts levied. Contact Northwest Bankruptcy today to find out more information on online filing.

The original post is titled File Bankruptcy Online for Ease and Accuracy , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .