Blogs
Once your Chapter 13 Bankruptcy case has been filed in Portland, you must begin making plan payments within 30 days. Obviously, if you do not have an employer, you will need to make these payments and start mailing them on yourself. If you do have an employer, the Bankruptcy Court will send an order to the employer to begin forwarding the required payments from your wages on to the Trustee’s Bank in Memphis, Tennessee. This raised a timing issue.
Sometimes it takes a few weeks or more for the deduction to start taking effect so it is imperative that you track on whether they are being taken out or not.
We have included in the back of this book a number of address stickers for you to use to insure any payments you must make yourself reach the bank correctly.
If your employer for whatever reason does not deduct a payment, you need to make it directly to the Trustee until the paycheck deduction takes effect or is corrected. The amount of your payment may change, so be sure to check your individual plan so that you are prepared for any payment changes.
Some words of warning: If you are mailing a check to the Portland Chapter 13 Trustee’s bank, make sure that it is a money order or certified check. Personal checks will be rejected and you will consequently be behind on your Plan payments.
Because the Trustee is handling literally thousands of cases, each check must clearly identify your name, address and case number. If you obligated to send in a payment for something other than your monthly plan payment(a tax refund, bonus, etc. required under your plan) you will need to identify what the funds are for so that the check may be properly reflected in your account.
All direct payments should be made payable to Wayne Godare, Trustee and mailed to Wayne Godare, Trustee, POB 420, Memphis, TN 38101-0420
Please remember that The Trustee is not going to send you a monthly bill or reminder to your employer. The ultimate responsibility for getting your payments to the Trustee on time falls squarely upon your shoulders.
The original post is titled Making a Payment to the Portland, Oregon Chapter 13 Bankruptcy Trustee , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
Evidence is building that more and more often, medical bills are pushing people into bankruptcy. An article by the Examiner evaluates a study of recent bankruptcy cases, finding that “75% of the entire pool surveyed had some type of health insurance.” Even so, medical bills listed in the bankruptcy case start around $5000 and rise above that. Most expenses are a result of out of pocket medical costs that insurance did not cover. To make matters worse, most of the insurance companies cancel coverage when the employee suffers a disabling illness because they become too sick to work, leaving them with medical bills and no insurance.
One example discussed in an article in Forbes discusses how a woman who is facing skyrocketing medical bills and credit card debt is considering bankruptcy just to get down to an income level low enough to qualify for disability insurance. The most upsetting part is that her situation is not unique. Overwhelming medical bills causes 17-62% of all bankruptcy declarations. She, like most, doesn’t want to file for bankruptcy but it is her safety net.
Many people associate words like: failure, embarrassment, loss, and rock bottom with bankruptcy. However, the truth is, it is none of those things. Bankruptcy allows individuals to both eliminate and reorganize most of their debt. Additionally, most of your assets are protected. Before you go to an extreme like selling, transferring or cashing any of your assets it is imperative that you consult with a bankruptcy attorney.
Should I See an Attorney?
People are finding themselves “under insured” and trying everything they can to get back on top. From running up credit cards just to pay for the medical bills, to maxing them out and falling further into debt, it is no surprise that bankruptcy is lurking just around the corner. What most people don’t realize is that the moment you find yourself with debt concerns, the best choice is to consult with an attorney. An attorney will be able to help you determine if there are other options besides bankruptcy that could get you out of debt.
- Credit counseling
- Payment plans
- Obtaining loan extensions
- Modifications
Those are some of the many alternatives to bankruptcy that people don’t realize exist. However, when you know you are in trouble, or you receive medical bills that you know are going to pose financial problems, that is when it is essential to talk with an attorney. Attorneys can put your finances into perspective and either point you in the right direction and get you set up with a bankruptcy alternative, or if necessary help you file.
There are several different types of bankruptcy: Chapter 7, Chapter 11, and Chapter 13 are the most common. Chapter 7 bankruptcy is the most common filed by individuals. With the rising costs of medical care and the increase of individuals struggling to stay on top, filing for bankruptcy may help relieve some of that debt. After consulting an attorney you will be able to get a better idea of what disclosures are required, and what debts will be discharged. Typically, chapter 7 bankruptcies are resolved within six months unless it is a complicated case.
If you are feeling overwhelmed with medical bills and struggling with finances, your best bet is to contact an attorney. Attorneys will help you understand a realistic view of your circumstances, while also relieving some of the stress that is associated with debt and bankruptcy.
The post Medical Bills Pushing People to Bankruptcy appeared first on AKB.
Debts that Survive a Chapter 7 BankruptcyThere are certain debts that are discharged regardless of whether a Chapter 7 or a Chapter 13 is filed. Discharged means that you will no longer be responsible for repaying them once the bankruptcy is over. In a Chapter 7 you will not have to repay any portion of the debts unless there are unexempt assets that the trustee divides among your creditors. In a Chapter 13 the repayment plan will most likely provide for some portion of the debts to be paid back. If you complete the plan successfully, the remaining unpaid debt will be discharged.Regardless of which chapter of bankruptcy you file, certain debts will be discharged with exempt of the portion paid back as mentioned above. These types of debts include credit cards, medical bills, some lawsuit judgments, obligations under leases and contracts, personal loans and promissory notes.In a Chapter 7 there are many debts that are not dischargeable that may be dischargeable in a Chapter 13. If a debt is not dischargeable, that means you owe them after your bankruptcy is over. There are certain debts that the bankruptcy does not affect at all; meaning that you will continue to owe them just has if you had never filed bankruptcy.
- Domestic Support Obligations
- Domestic support obligations are child support, alimony and other debts in the nature of alimony, maintenance, or support
- In order for this debt to be nondischargeable, the domestic support obligation must have been established in a separation agreement or divorce decree, an order of a court or a determination by a child support enforcement agency.
- Other Debts Owed to a Spouse, Former Spouse, or Child
- You cannot discharge any debt that you owe to a spouse, former spouse, or child that was incurred in the course of a divorce or separation agreement.
- While the bankruptcy may get rid of your liability to the creditor, you are still liable to the ex-spouse if the creditor goes after him or her for the payment.
- Fines, Penalties, and Restitution
- Certain tax debts
Dischargeability of debts can be an complicated issue and should not be determined by this non-exhaustive list of some of the debts that are not discharged, If you are considering bankruptcy, contact our office for a free consultation to meet with one of our attorneys to determine if bankruptcy is right for you.
What is a Chapter 7? What is a Chapter 11? What is a Chapter 12? What is a Chapter 13?What is a Chapter 7?Chapter 7 is the most popular type of bankruptcy. In a Chapter 7 bankruptcy, you must fully disclose your property, debts and financial activities over the several years prior to the filing of the bankruptcy. Typically three months after the case is filed, you receive a discharge of most of your debts with exception of certain nondischargeable debts.What is a Chapter 13?Chapter 13 is a reorganization for individuals. The individual can include sole proprietors and independent contracts but cannot include entities such as corporations or limited liability companies. Along with all of the documents required in a Chapter 7, you also propose a 3 or 5 year plan under which you typically must repay certain types of debts in full and usually some portion of your unsecured debt. Chapter 13 can be used to pay off missed mortgage payments over the life of the plan. Typically Chapter 13 is not the bankruptcy of choice because of the length of time before receiving a discharge and the extra legal fees involved. However, 10% to 15% of people who file under Chapter 7 are required to convert to a Chapter 13 bankruptcy because they have sufficient income to fund a Chapter 13 plan and at least partially pay back some of their creditors. What is a Chapter 11? A Chapter 11 Bankruptcy is typically for financially struggling businesses; used as a reorganization of their financial affairs. However, individuals may also qualify to file a Chapter 11. Individuals who consider Chapter 11 usually have debts in excess of the Chapter 13 bankruptcy debt limits or if the Debtor has substantial non exempt assets. Chapter 11 fees can be cost prohibitive and are very complicated. You definitely need an attorney if you are going to file a Chapter 11. If you are considering filing a Chapter 11, contact an attorney that specializes in Chapter 11 bankruptcies.What is a Chapter 12?Chapter 12 is very similar to Chapter 13. However, you be eligible for Chapter 12, at least 80% of the debts must have arisen from the operation of a family farm. If you believe that Chapter 12 may be what you need, contact an attorney that specializes in Chapter 12 bankruptcies. If you are considering any type of bankruptcy, contact a bankruptcy attorney today.
What Happens to my Credit Cards when I File Bankruptcy? The quick answer is that it depends. It depends on the status of your accounts. Your credit cards likely fall into one of these three categories:Cards on which you have a zero balance
- On the bankruptcy petition and schedules you must list all of your creditors, meaning people that you owe money to. However, if you have a zero balance then you do not owe them and they therefore do not have to be listed on the petition. This means you MAY come out of the Chapter 7 or Chapter 13 with the credit card. However, there are exceptions.
- Trustee may take your credit cards
- The credit card issuer may find out about the bankruptcy – many creditors constantly monitor their customers credit reports for signs on economic weakness
- The credit card issuer may cancel your zero-balance card – If they learn of the bankruptcy, the company may termite your account based on credit risk. However, some companies are happy to continue doing business with you because now you will not be able to file another Chapter 7 for eight years.
Cards on which you have a balance but you are current on payments
- If you owe a creditor money even if you are not in default, the credit usually as a matter of course will close the account and any of accounts that you have with them. If you happen to bank with the same company, they can freeze or close your bank accounts as well.
- If you file a Chapter 7 and want to keep the card you can contact the credit card issuer. However, absent an agreement to repay, they are likely going to close the account. In addition, it is typically not recommended that you agree to pay debts for unsecured things such as a credit card. The purpose of the bankruptcy is a fresh start and therefore you should come out of it with no unsecured debt.
Cards on which you have a balance and are in default
- If you owe a creditor money and are in default, the credit usually as a matter of course will close the account and any of accounts that you have with them. If you happen to bank with the same company, they can freeze or close your bank accounts as well. This can have devastating results if for example your paycheck was just deposited into the account, etc. so contact an attorney prior to filing bankruptcy.
Debts that Survive a Chapter 13 BankruptcyThere are certain debts that are discharged regardless of whether a Chapter 7 or a Chapter 13 is filed. Discharged means that you will no longer be responsible for repaying them once the bankruptcy is over. In a Chapter 7 you will not have to repay any portion of the debts unless there are unexempt assets that the trustee divides among your creditors. In a Chapter 13 the repayment plan will most likely provide for some portion of the debts to be paid back. If you complete the plan successfully, the remaining unpaid debt will be discharged.Regardless of which chapter of bankruptcy you file, certain debts will be discharged with exempt of the portion paid back as mentioned above. These types of debts include credit cards, medical bills, some lawsuit judgments, obligations under leases and contracts, personal loans and promissory notes.Debts that survive a Chapter 13 bankruptcy no matter what include:
- Domestic Support Obligations
- Criminal Penalties
- Certain Taxes
- Intoxicated Driving Debts
- Debts Arising from Willful or Malicious Actions
- Debts or Creditors You Do Not List
Debts that are discharged in a Chapter 13, not Chapter 7 include:
- Marital debts created in a divorce settlement (unless they are determined to be support)
- Debts incurred to pay nondischargeable tax debts
- Court fees
- Condo fees incurred after the bankruptcy filing date
- Debts for loans from a retirement plan
- Debts that could not be discharged in a previous bankruptcy due to failure to received discharge
You can convert from one chapter of bankruptcy to another. When you convert, you are then subject to the dischargeability rules of the chapter to which you converted, not the chapter you started out in. There are many reasons you might convert from one chapter to another. Reasons include: inability to complete a Chapter 13 plan, abuse found by the court of a chapter 7 requiring conversion to a Chapter 13. You may also convert because it is determined that some of your debts are only discharged in a Chapter 13 and not a Chapter 7.Dischargeability of debts can be an complicated issue and should not be determined by this non-exhaustive list of some of the debts that are not discharged. If you are considering bankruptcy, contact our office for a free consultation to meet with one of our attorneys to determine if bankruptcy is right for your situation.
How Will the Bankruptcy Affect Me? I am Filing Bankruptcy: Will I Lose My Job? No employer may fire you because you filed bankruptcy. In addition, an employer cannot discriminate against you in other terms and conditions of employment; reducing salary, demoting you, or taking away responsibilities because of a bankruptcy. However, if there are other valid reasons for taking these actions, then the bankruptcy will not protect you. Simply put, if an employer wants to take action against you, they can as long as there are other valid reasons such as incompetence, tardiness, or dishonesty.How does my Employer Find out About the Bankruptcy?Typically if you are filing a Chapter 7, your employer rarely finds out. However, if you have been sued and are having your wages garnished, your employer is notified. The bankruptcy stops that garnishment, so again your employer is notified in order to stop the garnishment. If you file a Chapter 13, your employer typically will receive notice. In a Chapter 13 plan it is likely that the Judge will order that your Chapter 13 plan payments be deducted from your paychecks and sent directly to the trustee. In order to accomplish this, your employer or at least the payroll department is notified of how much money to withhold and where to send the funds.Do I have to do a wage order for my Chapter 13?The simple answer is that is depends. You may not like the idea of the wage order, however the order will make the plan easier to complete. The success rates of Chapter 13 cases is higher where the Debtor has a wage order for their Chapter 13 plan payments over Debtors who pay the trustee themselves. The very obvious explanation is that it is hard to spend money that you never see meaning that if you employer is deducting the payment from your check and mailing it directly to the trustee then you are not tempted to use a portion of the money for other purposes.Can Bankruptcy Effect Child Custody?There is no reported evidence of a parent losing custody because of a bankruptcy. Bankruptcy and divorce are so often related these days that one often times follows the other. Family law and bankruptcy are being to overlap in many ways requiring bankruptcy attorneys and Judges to know more about family law and vice versa. However, keep in mind that bankruptcy does NOT relieve you of child support or alimony obligations.
Why Do I Have to Take a Pre-Filing Bankruptcy Class and a Pre-Discharge Class? Why do I have to complete a pre-filing class? Before your bankruptcy can be filed, you must complete a credit counseling session. The cost ranges from $10.95-$50.00. The agency provides a certificate of completion that must be filed with the bankruptcy petition, schedules, and statements. The course is available online, over the phone, and through the mail. The agency must be approved by the U.S. Trustee.The alleged purpose of the credit counseling is to give you an idea as to whether you need to file bankruptcy or whether a payment plan with your creditors would suffice to get you back on your feet. However, the counseling is required even if it is obvious that a repayment plan will not work for your situation. This is usually the case when your debt is high and your income is low or you are facing balances on debts with inflated interest rates and penalties.The requirement is that you complete the counseling but does not require that you follow the counseling’s recommendation. Even if a repayment plan is feasible, you are not required to agree to it.Why do I have to complete a pre-discharge class? You are required to take an approved personal finance course before the court will discharge your debts in a Chapter 7 or Chapter 13. The agencies providing this service must be approved by U.S. Trustee. In a Chapter 7 the course is to be completed within 45 days after the date on which the creditors meeting was scheduled. If you miss the deadline the court may close the case without a discharge of your debts. That means you will have to pay to reopen the case so that the course certificate can be filed in order to receive a discharge.If you are considering bankruptcy, contact our office for a free consultation to meet with one of our attorneys to determine if bankruptcy is right for your situation.What is the cost of each course?The cost varies depending on which company you chose to go with. The typically range from $10.95-$50.00 depending on which company and which method to take the class. Online classes are cheaper than the phone course. Some companies may also have financial aid meaning that depending on income, they may waive the fee for taking the course.
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for April 09, 2013 Bankruptcy trustee wants to sell Casey Anthony’s life story Doctors driven to bankruptcy Greensboro mayor is $10.8 million in debt, bankruptcy records show
For consumers considering bankruptcy protection, you may be unaware of the credit counseling requirement needed in order to file your petition. There is also a financial management courses that are required in order for debts to be successfully discharged. Many may not be fully aware of the second course requirement since it is different from [...]
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.