Debts Discharged at the End of Chapter 13 Bankruptcy
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Debts Discharged at the End of Chapter 13 BankruptcyNWDRLF2022-10-31T07:47:30+00:00
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. Cases of bankruptcy cannot be filed in state courts.
Additionally, bankruptcy laws provide for the orderly distribution of business assets to creditors through reorganization or liquidation. Title 11 of the United States Code governs these procedures (the Bankruptcy Code).
The primary objectives of bankruptcy law are:
To provide an honest debtor with a “fresh start” in life by erasing most debts
To repay creditors in an orderly fashion to the extent that the debtor has available property for payment.
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 consultation or call us today for more information. We are available 24 hours a day, seven days a week, 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 to hire a bankruptcy attorney in Portland, Oregon. When you have debt and expenses that you are unable to pay, the stress that 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 professional on your side who is able to assist you in making sense of your financial situation and provide direction over what steps to take next. Your attorney will be able to assist you in finding solutions to problems involving finances.
The following are some of the ways in which a lawyer can assist you:
Eliminate your existing debt
Put an end to the vexatious and apparently never-ending stream of phone calls and mail.
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 of your choices and help you determine which ones are the most suitable for your specific predicament. These choices may include several sorts of bankruptcies to file, a defense against foreclosure with your lender, negotiations with your creditors, and various other financial concerns.
What is Chapter 13 Bankruptcy?
When you are behind on your bills and collection notices continue to pile up, you may want to consider filing for bankruptcy. There are several options available to you, but Chapter 13 is designed for individuals with a regular income. It’s even referred to as a “wage earner’s plan” because you use your income to repay a portion of your debts over three to five years. At the conclusion of this period, the majority of your remaining debts are dischargeable.
The legal process of Chapter 13 bankruptcy allows you to restructure your debt so that it is more manageable. Over the course of three to five years, you will repay a portion of the outstanding debt. At the conclusion of your repayment plan, any remaining debt may be “discharged,” meaning it is no longer owed. Chapter 13 is sometimes referred to as a “reorganization” because you will pay most, if not all, of your debts.
You will file a petition for Chapter 13 bankruptcy with the assistance of an attorney, along with a repayment plan for your creditors. Although hiring an attorney is not required, doing so may improve your chances of success.
After the judge approves your proposal, you will send a monthly payment to a court-appointed trustee who collects and distributes payments to your creditors over a three- to five-year period.
In Chapter 13 Bankruptcy, which Debts are Canceled?
Most Unsecured Non-Priority Debts
In contrast to priority claims, which are paid before other obligations, the majority of unsecured nonpriority debts receive no special treatment in bankruptcy. The majority of unsecured nonpriority debts are dischargeable in Chapter 13 bankruptcy unless the creditor can demonstrate that you obtained the debt through fraud or deception.
These are the most prevalent forms of non-priority unsecured debts that can be discharged in Chapter 13 bankruptcy, namely, credit card debt, medical expenses, personal loans, older non-priority income tax liabilities, utility bills, as well as the majority of court judgments are included in this category.
Secured Obligations That Are Compressed or Stripped
Generally, a bankruptcy discharge does not eliminate property liens. Your lender has a security interest in your property if you have a mortgage or auto loan. If you fail to make payments, the lender can seize your property or reclaim your vehicle despite your bankruptcy discharge.
However, Chapter 13 can help you save your home. You may be able to remove a fully unsecured junior lien (such as a second mortgage) through lien stripping or lower the outstanding sum of other secured debts (such as a vehicle loan) through Chapter 13 cramdown if you meet certain conditions.
Canceled Debts in Chapter 13 Bankruptcy Only
A Chapter 13 bankruptcy discharge permits the elimination of some debts that cannot be eliminated in Chapter 7 bankruptcy. The following are the most typical debts that can be discharged under Chapter 13 but not in Chapter 7:
Debts resulting from intentional and deliberate property destruction
Debts used to satisfy non-dischargeable tax liabilities
Debts accumulated as a result of a property settlement agreement in a divorce or legal separation (keep in mind that debts characterized as support obligations such as alimony or child support are not dischargeable)
Outstanding bills from a past bankruptcy for which your discharge was denied
Retirement account loans
Condominium or homeowners association fees that became due after your filing date, and
Certain government fines and penalties are owed (excluding criminal fines).
Call our Bankruptcy Lawyers Now!
Achieve Debt Relief Today! Call our Portland-based bankruptcy lawyers at Northwest Debt Relief Law Firm now.