The Law Office of Kim Covington

Call For A Free 1-Hour Consultation
541-393-2790 | 800-673-1891

Please Ask For Kim Directly When Scheduling An Appointment

Chapter 13 bankruptcy: benefits and basics

A person in Oregon who has fallen behind on payments or is struggling to meet all financial obligations may find a solution through a Chapter 13 bankruptcy. According to the Cornell University Law School’s Legal Information Institute, this type of bankruptcy typically allows people to keep their homes, and even some of the equity they have accumulated. Individual retirement accounts are also generally safe, and cars. Keeping these three major assets in place while paying off some debts and having others discharged make this reorganization plan appealing to many.

Taxes, student loans and child support are not usually dischargeable. The United States Courts explains that these are considered priority claims, and must be paid in full through the plan. Secured claims are tied to assets, such as a vehicle, and the debtor cannot pay less than the value of the item. Although a mortgage payment is a secured claim, the amount included in the repayment plan is typically only the amount that the debtor is behind. He or she must still make the regular mortgage payments, as well.

Unsecured claims do not have to be paid in full, but they are included in the plan if there is any disposable income that may be added to the monthly payment after a person’s basic living expenses are taken care of. To determine the amount that a debtor may reasonably pay each month toward debts, the court requires the following:

  •          Claims, including the amount, the type and the creditor
  •          Income, such as wage amounts and how often they are paid
  •          Property
  •          Living expenses

Even if only one spouse is filing for bankruptcy, he or she must still provide the same information for the other spouse in order to give an accurate account of the financial situation for the entire household.

No Comments

Leave a comment
Comment Information
email us for a response

Learn More About Your Fresh Financial Start

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 19 years.

The Law Office of Kim Covington

The Law Office of Kim Covington
1445 Willamette Street, Suite 9
Eugene, OR 97401

Toll Free: 800-673-1891
Phone: 541-393-2790
Fax: 541-344-6466
Eugene Law Office Map

P: 541-393-2790

T: 800-673-1891

F: 541-344-6466