Portland Bankruptcy Law Group | Bankruptcy Attorneys Portland, Oregon, Bankruptcy Lawyers Portland, Oregon

NE Office: 503.766.3944

SE Office: 503.766.2020

Beaverton: 503.766.3991

Chapter 13

Adjustment of Debts

Chapter 7

Commonly referred to as "Liquidation", involves an orderly, court-supervised procedure by which a trustee takes over the assets of the debtor's estate, reduces them to cash, and makes distributions to creditors, subject to the debtor's right to retain certain exempt property and the rights of secured creditors.

Chapter 13

Referred to in the Bankruptcy Code as "Adjustment of Debts of an Individual with Regular Income," is designed for an individual debtor who has a regular source of income and is not available for corporations.

Chapter 13

Referred to in the Bankruptcy Code as "Adjustment of Debts of an Individual with Regular Income," is designed for an individual debtor who has a regular source of income and is not available for corporations.
Chapter 13 can be a better choice for an individual because it enables the debtor to keep valuable assets and allows the debtor to propose a plan to repay certain creditors over a period of 36-60 months. It is rare that a debtor will be required to pay 100% of their debts through a Chapter 13 plan. In many cases debtors are not required to pay any of their unsecured debts through their Chapter 13 plan.
Chapter 13 is also available to debtors who do not qualify for chapter 7 relief. The debtor must make monthly payments to the chapter 13 trustee, who distributes the money to creditors according to the debtor's chapter 13 plan, and the debtor does not receive a discharge until after the payments required under the plan are completed.
The debtor is protected by the Court from all collection activity while the plan is in effect. Additionally, more types of debts are eliminated under chapter 13 than under chapter 7.
Chapter 13 offers individuals an opportunity to save their homes from foreclosure. Individuals can stop foreclosure proceedings and may cure delinquent mortgage payments and/or property tax payments over time. Another advantage of chapter 13 is that it allows individuals to modify secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan and possibly lower the payments. In some circumstances, judgment liens and junior liens can be completely removed from a debtor's real estate.
Chapter 13 also has a provision that protects co-signers from collection efforts while the debtor is in bankruptcy.

2207 NE Broadway, Suite 100, Portland, Oregon 97232 T: 503.766.3944
1415 SE Ramona Street, Portland, Oregon 97202 T: 503.766.2020
1500 NW Bethany Blvd., Suite 200 Beaverton, Oregon 97006 T: 503.766.3991

CAUTION: This website is to provide visitors with basic information about our firm, and information about how to contact us. Every situation is different, and no information on this website is legal advice on any specific question. You should not act on any of the information without first conferring with an attorney licensed in your jurisdiction. No attorney-client relationship or privilege is formed by visiting this site or by unsolicited email. Therefore, initial emails should not contain any confidential information. We may already represent parties adverse to you and cannot advise or represent you until we check for conflicts. We are licensed only in Oregon and offer our services only to those doing business in Oregon, unless we are associated with local counsel in accordance with other states' laws. The applicable laws may have changed after the information on this website was published. While effort is made to keep the information current, you should not presume that all information is up to date. You must confer with an attorney to be sure you have current information.