Bankruptcy Attorney in Portland, OR
Bankruptcy is a set of federal laws and regulations that can assist individuals and businesses with excessive debt. In almost all 94 federal judicial districts, bankruptcy cases are filed in bankruptcy court. Bankruptcy cases cannot be filed in state courts. By liquidating their assets to pay off their debts or establishing a repayment plan, bankruptcy laws enable individuals unable to pay their creditors to start over.
Additionally, bankruptcy laws provide for the orderly distribution of business assets to creditors through reorganization or liquidation. Title 11 of the United States Code, also known as the Bankruptcy Code, governs these procedures.
Bankruptcy cases are exclusively within the jurisdiction of federal courts. Therefore, a bankruptcy case cannot be filed in state court. The primary objectives of bankruptcy law are (1) to provide an honest debtor with a “fresh start” in life by erasing most debts and (2) to repay creditors in an orderly fashion to the extent that the debtor has available property for payment.
In some bankruptcy cases, the borrower is allowed to reorganize and establish a plan to repay creditors, while in others, the borrower’s assets are liquidated.
At Northwest Debt Relief Law Firm, we are skilled bankruptcy Portland-based attorneys who take swift legal action so that you can quickly regain your financial footing. Schedule a free debt analysis with us to discuss your legal options and maximize your claims.
Why do I need a Bankruptcy Attorney in Portland, OR?
When you have determined that declaring bankruptcy is the best way to handle your financial situation, one of the most crucial tasks you can take is hiring a bankruptcy attorney in Portland, Oregon. When you have debt and expenses you cannot pay for, the stress you are under can become unbearable, and it may feel as though what you owe has become the entirety of your life.
If you have legal representation, you have the assistance of a knowledgeable and experienced lawyer on your side who can assist you in making sense of your financial situation and provide direction on what to do next. Your attorney will be able to provide legal advice and assist you in finding solutions to problems involving finances or the bankruptcy process itself.
The following are some of how a lawyer can assist you:
- Eliminate your existing debt
- Stop the distressing and never-ending stream of phone calls and emails
- Avoid having your most precious belongings, such as your home or automobile, go into foreclosure or be repossessed by taking the appropriate precautions
- Stop any wage garnishments that have been ordered against you.
- You will be protected from pending as well as prospective civil litigation
When you pay a lawyer for a consultation, they will walk you through all your choices and help you determine which ones are the most suitable for your specific predicament. These choices may include filing several bankruptcies, a defense against foreclosure with your lender, negotiations with your creditors, and other financial concerns.
What is Chapter 7 Bankruptcy?
The most straightforward and widespread type of bankruptcy is known as a Chapter 7 filing or liquidation bankruptcy.
If the insolvent files for bankruptcy under Chapter 7 and possesses assets that are not shielded by a bankruptcy exemption, a trustee appointed by the court may liquidate such assets and distribute the net profits to creditors under the priorities outlined in the Code.
In return, the debtor receives a release from the majority of his responsibility for the debts.
Nearly all individual bankruptcy cases are resolved by the trustee without the sale of any of the borrower’s belongings. This occurs in about 99 percent of all singular bankruptcy cases.
What is Chapter 13 Bankruptcy?
When a debtor files for Chapter 13 bankruptcy, they are eligible for a financial repayment plan that shields them from collection actions during the case and dismisses nearly all of their outstanding debts after the case.
The debtor is the one who devises the plan for making payments. Depending on the debtor’s disposable income, assets, and regular income, the creditors may receive only a minute portion of what they are owed. After the strategy, almost all of the outstanding debt will be cleared. This discharge applies to some debts, including those that cannot be eliminated under Chapter 7.
Chapter 13, or reorganization bankruptcy, is a powerful tool for debtors to keep their possessions, reclaim control of their financial lives, and get a meaningful fresh start.
Given these differences, when is Chapter 13 better than Chapter 7?
Reasons to Use Chapter 13 Bankruptcy Instead of Chapter 7 Bankruptcy
Sometimes it makes sense to file for Chapter 13 bankruptcy instead of Chapter 7 bankruptcy.
Many debtors choose not to file for Chapter 13 bankruptcy because it requires repayment of at least a portion of their debts. Unlike Chapter 7 bankruptcy, which wipes out many debts entirely.
In some situations, however, Chapter 13 bankruptcy filing is the better option. Not only that, but some debtors don’t get to choose: Not everyone is eligible for Chapter 7, so Chapter 13 bankruptcy will be the only option available to some filers.
Inability to file for a Chapter 7 Bankruptcy
You will not be permitted to apply for Chapter 7 bankruptcy if you do not meet certain additional conditions established by the 2005 changes to the bankruptcy legislation.
Being behind on mortgage or auto loan
You then wish to resume the original arrangement by making up the missed payments over time. That is not permitted in Chapter 7 bankruptcy. Only Chapter 13 bankruptcy allows making up missed payments.
Inability to discharge tax bills, student loans, or other debts under Chapter 7
You can incorporate these obligations in your Chapter 13 case and repay them over time.
Possessing a valid intention to repay debts
You need to require bankruptcy court protection to do it. This may be the case if you are being pursued by creditors or need the official framework and deadlines that Chapter 13 bankruptcy provides to carry out your good intentions.
Retaining property that is not exempt
Chapter 7 bankruptcy allows you to retain only exempt property, which is a property shielded from creditors by state or federal law. You must surrender your non exempt assets to the bankruptcy trustee, who will sell them and distribute the proceeds to your creditors.
In Chapter 13 bankruptcy, you are not required to surrender any property. Instead, you use your money to repay your debts. So, if you have a nonexempt property you can’t bear to part with, Chapter 13 bankruptcy might be the better choice.
Availability of a co-debtor on a personal debt
If you file for Chapter 7 bankruptcy, your co-debtor will remain liable for payment, and your creditor will surely pursue payment from the co-debtor. The creditor will leave your co-debtor alone if you file for Chapter 13 bankruptcy and maintain your bankruptcy plan payments.
Call our Chapter 13 Bankruptcy Attorney Now!
We help our clients rebuild their credit after bankruptcy. Our focus is not just on eliminating debt but on helping you return to the financial mainstream as quickly and efficiently as possible. This service is provided at no additional charge.
Achieve Debt Relief Today! Learn more and call our bankruptcy lawyers at Northwest Debt Relief Law Firm now!