Filing Chapter 13 Bankruptcy - Oregon State

1. Chapter 7 vs. Chapter 13: Why would I file a Chapter 13 and have a payment plan for three to five years when I could file a Chapter 7 and receive a discharge on most if not all creditors owed. In filing a Chapter 7, after the Discharge, you will be finished with the bankruptcy process and ready to move forward with your life. A discharge is basically a legal forgiveness of debts. Once a discharge is received the debtor no longer legally owes the creditor. Filing a Chapter 7 is by far the best route to take. But in some cases, a debtor cannot file using a Chapter 7. The following reasons apply:

a. You earn more than the Oregon State Median Income - see the link below to review the median income by state.

b. You filed Chapter 7 less than eight years ago. You can file Chapter 7 again, only if your prior filing was eight years ago or longer.

c. You have significant equity in a home or other property and want to keep it.

d. You want to protect a Co-Signers credit.

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Now that you have decided that Chapter 13 is for you, you must fall within the following guidelines to qualify for filing a Chapter 13:

a. Your family income is above the State Median Income - see link below for guidlines.

b. Your unsecured debts are below $360,475 and secured debts are below $1,081,400.

c. You have filed Chapter 7 more than 4 years before filing Chapter 13 to receive a discharge. If you filed Chapter 13 prior, you will need to have had to wait two years between filings to receive a discharge.

d. Within 180 days before filing any chapter of bankruptcy, an approved credit counseling course must have been taken and a certificate received.

e. Any chapter of bankruptcy cannot be filed if within 180 days a previous bankruptcy filing was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.

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This is the period to wait between filings to receive a discharge:

The time frames between discharge eligibility are as follows:

8 years between Chapter 7's

2 years between Chapter 13's

4 years between a Chapter 7 and 13

6 years between a Chapter 13 and 7

The time is counted from filing to filing — not from first discharge to second filing.

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2. Fee for Filing Chapter 13:

The courts must charge a $235 case filing fee and a $46 miscellaneous administrative fee. Normally the fees must be paid to the clerk of the court upon filing. With the court's permission, however, they may be paid in installments. The number of installments is limited to four, and the debtor must make the final installment no later than 120 days after filing the petition. For cause shown, the court may extend the time of any installment, as long as the last installment is paid no later than 180 days after filing the petition. The debtor may also pay the $46 administrative fee in installments. If a joint petition is filed, only one filing fee and one administrative fee are charged. Debtors should be aware that failure to pay these fees may result in dismissal of the case.

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3. Do I need an Attorney?

No. But a Chapter 13 is very complicated. All the information needed to file as well as the forms needed to file in the state of Oregon are provided below. Usually, you may request that the attorney's fee be paid through the monthly payments to the Trustee. Do be diligent and try to find an attorney that does not charges exorbitant fees.