Chapter 13 Bankruptcy Attorney in Hermiston
Your Path to Financial Stability Begins Here
At Oregon Fresh Start, we understand the financial challenges faced by residents of Hermiston, OR, which can lead to considering Chapter 13 bankruptcy. Our compassionate Chapter 13 bankruptcy attorney in Hermiston brings over 43 years of experience helping more than 11,000 individuals, offering remote consultations and personalized legal guidance through every step of the process.
Understanding Chapter 13 Bankruptcy in Hermiston, OR
Chapter 13 bankruptcy, often referred to as a wage earner's plan, enables individuals with regular income to develop a plan to repay all or part of their debts. In Hermiston, OR, this process is conducted in federal bankruptcy court, with state-specific laws shaping the proceedings. Debtors propose a repayment schedule to make installment payments to creditors over three to five years.
The advantage of Chapter 13 is that it provides a structured approach to managing debts while retaining property, including homes. Engaging with a Chapter 13 bankruptcy attorney in Hermiston helps navigate the legal landscape and ensures adherence to local laws. Beyond federal guidelines, Oregon has specific exemptions and procedures that can significantly impact your bankruptcy case. Our team is well-versed in these details and ready to guide you through them.
Facing mounting debt but still earning? Contact us online or call (541) 262-0040—our Chapter 13 bankruptcy attorney in Hermiston can help protect what matters most.
Why Choose Us as Your Chapter 13 Bankruptcy Lawyer in Hermiston
Selecting the right Chapter 13 bankruptcy attorney can greatly influence your case. Here’s why clients in Hermiston choose us:
- Convenient Remote Services: We offer complete assistance from the comfort of your home, reducing stress and enhancing accessibility. This flexibility ensures support without additional inconvenience, especially beneficial for clients with busy schedules or mobility challenges.
- Client-Centered Approach: Our personalized plans are crafted to meet your individual financial needs. We invest time in understanding your situation thoroughly and collaborate to design a workable plan addressing your unique challenges and objectives.
- Proven Track Record: Backed by over 43 years of practice and assisting more than 11,000 people, our firm's reputation is a testament to our reliability. Our experience helps proactively address issues before they trouble your bankruptcy process, offering a smoother path to financial recovery.
Common Concerns About Filing Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy comes with several common concerns for Hermiston residents:
- Will I Lose My Home? With Chapter 13, most individuals can retain their homes as long as they adhere to their mortgage payments under the plan. This process is designed to alleviate immediate financial burdens by allowing time to catch up on missed payments.
- Will My Credit Be Ruined? Bankruptcy reflects on your credit report for seven years, but it can serve as a fresh start for rebuilding your financial health. By managing your new credit responsibly and displaying financial discipline, you can gradually enhance your credit score over time.
- How Much Will This Cost? Costs associated with Chapter 13 often include attorney fees and court costs, which vary by case. We are committed to transparent pricing and offer payment plans to ensure affordability without adding to your stress.
Frequently Asked Questions
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a legal procedure that assists individuals with a consistent income to create a debt repayment plan while maintaining their assets. It restructures liabilities into manageable payments over three to five years. Engaging a Chapter 13 attorney ensures compliance with both federal and local regulations in Hermiston, OR. This option suits debtors desiring to avert foreclosure, settle missed mortgage payments, reduce car loan burdens, or halt interest on tax liabilities. It offers an opportunity not only for consolidation but also for the protection of assets, which might be liquidated under a Chapter 7 filing.
How Does the Repayment Plan Work?
The repayment plan forms the backbone of Chapter 13 bankruptcy, demanding court approval and based on your income, debts, and living expenses. Payments are made to a trustee who allocates them to creditors. Completing the plan can result in the discharge of unsecured debts, offering a new financial beginning. It's crucial to adhere to the agreed terms, as failure to do so can lead to difficulties, including the potential dismissal of your case. A carefully structured plan, reviewed by a Chapter 13 bankruptcy attorney, helps ensure it aligns with your financial circumstances and avoids errors that could complicate your situation.
Do I Need an Attorney to File for Chapter 13?
While hiring a Chapter 13 bankruptcy lawyer is not legally mandatory, navigating federal court and Hermiston-specific procedures can be complex. Professional guidance is vital for creating effective repayment plans and boosting your chances of court approval. At Oregon Fresh Start, we provide the necessary legal support to manage these complexities. Filing independently increases the risk of errors, such as incorrect paperwork or misunderstanding legal obligations, which can cause delays or even case dismissals. Our role is to simplify your experience, allowing you to concentrate on revitalizing your financial well-being confidently.
What Are the Advantages of Filing Chapter 13?
Chapter 13 bankruptcy in Hermiston offers a viable method to manage substantial debt. Benefits include preserving your home, halting foreclosures and garnishments, and consolidating debts into a single manageable payment. Additionally, it repositions secured debts, allowing repayments to extend over the life of the plan. One of the significant advantages is the cessation of accruing interest on unsecured debts post-filing, greatly aiding in reducing the principal balance more swiftly.
What Happens If I Miss a Payment?
Missing a payment is a critical issue but doesn't necessarily terminate your plan. Promptly communicating with your trustee and Chapter 13 bankruptcy attorney can yield plan modifications when needed. Addressing such concerns immediately is vital to sustain bankruptcy protection. We recognize unforeseen circumstances might arise and are dedicated to adjusting your repayment plan to reflect significant financial changes. Maintaining transparent communication with us makes navigating unexpected challenges more manageable and keeps your progress toward financial recovery intact.
Start Your Journey Toward Financial Freedom Today
Confronting financial turmoil can be overwhelming, but you need not face it alone. By choosing Oregon Fresh Start, you benefit from over four decades of experience as a Chapter 13 attorney offering guidance tailored specifically to your needs. Our strategies emphasize comprehensive, personalized legal support. We offer a complimentary consultation to help you reclaim your financial autonomy—no upfront costs required. This risk-free first step provides insight and peace of mind, empowering you to chart the best course for your financial situation. Together, we turn financial challenges into opportunities for new beginnings.
Take control of your financial future today. Contact us online or call (541) 262-0040 to speak with a Chapter 13 bankruptcy attorney in Hermiston who can help you move forward.
Have Questions?
We Have Answers!
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WHAT DOES IT MEAN WHEN A CREDITOR WANTS ME TO REAFFIRM MY LOAN WITH THEM? IS THAT DIFFERENT FROM REDEMPTION?Secured creditors (those creditors who have collateral for their loans, such as a car or boat) will want you to reaffirm the loan. When you reaffirm the loan, you re-obligate yourself to all of the loan terms just as if you were getting a new loan from the creditor. Although this may sound harmless, it has serious consequences. If you reaffirm and then later default on the loan, you are personally liable to pay the balance and you will have no protection on that debt from the bankruptcy. One of the major changes made to bankruptcy law in 2005 is that a creditor can repossess the collateral if you do not reaffirm. This change does not apply to real estate debt. Your reaffirmation agreement is subject to court approval in some circumstances. If your income is less than your monthly expenses, you may be required to participate in a telephone hearing with the court where you will be required to explain to a bankruptcy judge why the reaffirmation is in your best interest and how you intend to make the payment. More often than not, when you file bankruptcy, you owe more on the collateral securing the loan than it is worth. If your loan is more than 2 1/2 years old, under a process called REDEMPTION, bankruptcy law allows you to reduce the amount owing on the debt to the value of the collateral if you can pay it all at once. Many debtors can find a source of family financing or, perhaps, borrow from a 401K account, etc. and come up with the full value. There is also a company on the internet that specializes in redemption funding for cars. Talk with OREGON FRESH START about this for more information. WOULDN'T IT BE BETTER TO SETTLE MY DEBTS THROUGH A DEBT CONSOLIDATION PLAN? Although there may be a few reputable credit counseling services out there, most will not and cannot give you what they promise. Usually, they promise they can settle your debts for 50 cents on the dollar and that when you get done, you will have great credit. The facts are that (1) most people do not complete the "plans" because they usually do not work, and if you do complete the plan, (2) your credit is trashed. Creditors report to credit bureaus exactly what happened. If you get hooked on a 50% plan, your credit report will show that you did not pay all of the debt and that the unpaid balance was charged off. Most creditors do not waive interest or late fees. In addition, most credit counseling programs will charge you a fee (a portion of each payment) and they often do not send your money to the creditors for several months. This gives them an interest-free loan working with your money. Most debtors would be better off filing a Chapter 7 or Chapter 13 bankruptcy which can force the creditors to accept your terms of repayment. In addition, and this is a big one, the amount that was charged off by the creditor will likely be reported to the IRS with a 1099 tax form and you will be required to pay income taxes on the charged-off amount which will be a very unpleasant surprise for you when you file your tax returns for that year. CAN STUDENT LOANS BE DISCHARGED? Yes, but it is not easy. It will also, probably, be expensive. Once upon a time, federally guaranteed student loans were dischargeable if the loan was more than 7 years old. In 1998, the federal government changed all that. Now, federally guaranteed student loans cannot be discharged unless you can prove that being required to repay the loan will cause an undue hardship - not just a hardship, but an "undue" hardship. To have an opportunity to prove your case, you will be required to sue the federal government in bankruptcy court through an adversary proceeding. You will be required to prove all of the following: repayment of the loan would prevent you from maintaining a minimal standard of living your financial circumstances are not likely to change in the foreseeable future you made a good faith effort to repay the loan before you became unable to pay Frequently, the federal government will try to show that you could get a reduced payment plan by going through a consolidation program that will stretch out your payments for 20 years or more based upon an "ability to pay." In short, it is possible to discharge a student loan, but the government has made it very difficult. Also, remember that the government has a raft of lawyers to defend the federal government in the lawsuit who are paid for by your taxes. On the other hand, you will be required to pay for your attorney.
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ARE LOANS OWING TO RELATIVES GIVEN SPECIAL TREATMENT IN BANKRUPTCY?It is not uncommon for you to owe money to a relative. As discussed in other answers to questions, you must list every debt. This includes debts you owe to your family members. The bankruptcy court looks closely at loan transactions between family members. As we all know, if we owe money to several creditors and one of them is a family member, we will probably be inclined to pay the family member first. In a bankruptcy context, this often means that family members have been paid while the other creditors have not been paid. One of the main ideas behind filing bankruptcy is that all creditors share your misfortune equally. One of the questions asked in the bankruptcy petition is whether you have repaid any loans from relatives within the past year. If you have, you are required to disclose the amount. If the amount is large enough, the bankruptcy trustee has the power to get the money back from the relative and spread it out equally among all the creditors. While there is no set rule as to what amount is "large enough," if the amount were $2,000 or more, that would definitely be "large enough." There are other factors that go into the trustee's decision, including whether you have any other assets which exceed the exemption amounts and how likely it is the trustee can obtain a return of the money from the relative. A relative who has already spent the money and whose only source of income is Social Security is not likely to be a target for the trustee. If you have a loan from a relative and are considering filing bankruptcy, stop paying on the loan until you consult with OREGON FRESH START.
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CAN I TRANSFER PROPERTY TO A FRIEND OR RELATIVE TO PROTECT IT FROM BANKRUPTCY?If you transfer any of your property to a relative, even by selling it, within 1 year of filing for bankruptcy, the bankruptcy trustee can reverse that transfer if it was transferred for less than the fair market value of the property. For example, if you gave Uncle Joe your car 30 days prior to filing bankruptcy because you did not want it to show as an asset in your bankruptcy, the trustee has the power to sue Uncle Joe and get the car back. Unfortunately, some people engage in such an activity before consulting with an attorney. It is also not advisable if you have already made the transfer to attempt to transfer it back without first obtaining expert legal advice.
