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Posts tagged "Chapter 13 Bankruptcy"

Personal circumstances may dictate type of bankruptcy filing

It can be difficult to get finances back on track when debts are piling up. Oregon consumers have options to reduce or eliminate debts, including negotiating with creditors or filing for bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code. The type of bankruptcy they should file for depends on their particular financial situation and their goals for the process. In many cases, the rules will determine which type of filing to make.

Repairing a credit score after bankruptcy

Lots of Oregon residents are struggling with debts they are unable to repay. While personal bankruptcy may provide an option for debt relief, many are wary of taking the hit to their credit reports that come with the option. However, these debtors may still begin to suffer serious credit damage, especially if late payments or unpaid bills begin to rack up. This means that debt-resolving bankruptcy can actually improve some people's credit scores in the long run.

Consumer rights give debtors power to stop creditor harassment

Collection agencies sometimes cross the line into harassment when they contact debtors in Oregon. Abusive language, threats or excessive telephone calls and texts can add significantly to the stress of people who have fallen behind on payments. The Fair Debt Collection Practices Act recognizes that people might need protection from creditor harassment and establishes restrictions on the actions of debt collectors.

Why bankruptcy is more common as people age

In Oregon and throughout the country, older Americans are filing for bankruptcy at a higher rate than their younger counterparts. Part of the reason is that government benefit programs such as Social Security are replacing a lower portion of a worker's income after retirement. At the same time, health care costs are going up, which can further strain the finances of someone 65 or older.

Chapter 13 bankruptcy and the repayment plan

Oregon consumers who are considering filing for Chapter 13 bankruptcy might wonder what is involved in the repayment process. To file for Chapter 13 bankruptcy, it is necessary to go through the means test, which is income-based, and may have assets they want to keep. This might include the house. A Chapter 13 bankruptcy involves paying off debts over three or five years. Working with an attorney, the debtor creates a repayment plan that is then submitted to the bankruptcy trustee for approval. Many unsecured debts that remain at the end of the repayment period are discharged except for those that are not eligible. Among these are child support payments.

How the wage gap feeds into the debt gap

Oregon residents and others may be aware of the wage gap. However, they may not know that there is also a debt gap between men and women. On average, women have higher student loan, auto loan and credit card balances compared to men. Those who are trying to get out of debt should start by paying back the balances with the highest interest rates.

Some experts say bankruptcy filings should not be delayed

Some Oregon consumers might be struggling with debt but may hesitate to file for bankruptcy. Many people may feel it is more honorable to pay debts and that filing for bankruptcy will stigmatize them. However, bankruptcy is a tool that is intended to offer people a fresh start. Many experts say waiting to file leaves people financially depleted and less able to take advantage of the benefits.

How to time a bankruptcy filing

Oregon residents may not file for bankruptcy because of the stigma surrounding it. However, it may be harder to truly get a fresh start after filing for those who wait too long to file. As a general rule, anyone who has a debt-to-income ratio of more than 40 percent should file for either Chapter 7 or Chapter 13 protection in the near future. The same is true for anyone who is not able to buy food or other necessities.

How does chapter 13 bankruptcy work for individuals?

The loss of a job, a change in your wages or any other number of factors can cause you to experience financial difficulties. If you are like others in Lane County who have been faced with such difficulties, you may have considered debt relief options, such as bankruptcy, to help you regain control of your finances. While chapter 7 filings are generally the most common, filing for chapter 13 bankruptcy may be better suited for your situation and needs.

How does Chapter 13 work for a small business?

The ability to run a small business is a dream come true for many people, and can be a rewarding experience. Unfortunately, many small business owners in Eugene are experiencing financial difficulties due to today’s tough economy. It can be heartbreaking if you’re thinking about shutting down your beloved company because you aren’t able to pay the bills. Fortunately, there are some options that you can consider before closing the doors for good on your small business.

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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
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