How Do I Know If I am Eligible for Chapter 13 Bankruptcy?

Discover the Basic Requirements for Chapter 13 Bankruptcy Eligibility
When facing financial difficulties, you might wonder if Chapter 13 bankruptcy could be the right choice for you. If you’re considering this option, our Chapter 13 bankruptcy attorney in Oregon can guide you through the eligibility requirements and assist in filing your case correctly. 
Chapter 13 allows you to create a plan to pay off your debts over time while keeping your property. This article will guide you through the basic eligibility requirements and what you must consider before filing. Knowing whether you can file for Chapter 13 is the first step toward finding relief from your financial stress.
Quick Summary:

• Chapter 13 bankruptcy helps you reorganize your debt and create a manageable repayment plan. By filing Chapter 13 bankruptcy in Salem, Oregon, you can keep your property, like your home and car, while paying off your debts over three to five years. This option is suitable for individuals with a steady income who need time to catch up on overdue payments. Unlike Chapter 7, which often eliminates debts, Chapter 13 allows you to keep your assets and repay based on your income and expenses. The court will approve a repayment plan that works for your financial situation.
• To qualify for Chapter 13 bankruptcy in Oregon, you must meet specific eligibility requirements. These include having a regular income, ensuring your total debts are below certain limits, and completing a mandatory credit counseling course. You must also be aware that some debts, like student loans, child support, and alimony, cannot be included in a Chapter 13 repayment plan. Additionally, your previous bankruptcy history can impact your eligibility, as you must wait a set period before filing again after a past discharge. Meeting these requirements will allow you to reorganize your debts and begin working toward financial stability.
• Filing for Chapter 13 bankruptcy in Salem, OR, provides several benefits for those struggling with debt. It allows you to create a repayment plan based on your income and budget, which you pay monthly to a trustee. The automatic stay stops creditors from contacting you or taking legal actions, providing relief from harassment. Additionally, Chapter 13 may help eliminate remaining unsecured debts like credit card and medical bills after the repayment period. It also offers protection against foreclosure or repossession, giving you time to catch up on missed mortgage or car payments.

What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a way to reorganize your debt and create a repayment plan that fits your financial situation. Filing Chapter 13 bankruptcy in Salem, Oregon, allows you to keep your property, such as your home or car, while paying off your debts over three to five years. This type of bankruptcy is for people who have a steady income and need time to catch up on overdue payments. 
Unlike Chapter 7 bankruptcy, which often wipes out debts, Chapter 13 offers a way to manage your debt and avoid losing your assets. The court will approve a plan that makes it possible for you to pay off what you owe based on your income and living expenses.
What are the Basic Eligibility Requirements for Chapter 13 Bankruptcy?
If you’re considering Chapter 13 bankruptcy in Oregon, it’s essential to know if you meet the eligibility requirements. This type of bankruptcy allows you to reorganize your debt and create a repayment plan based on your income. However, not everyone is eligible for Chapter 13. You must meet the following requirements to qualify:
Regular Income
To qualify for Chapter 13, you must have a regular source of income. This could be from your job, self-employment, or other stable sources. The court will want to see that you can make monthly payments toward your debt. Without a consistent income, you may not be able to meet the payment plan requirements. Having a steady income helps prove that you can follow through with the repayment plan.
Debt Limits
Another requirement is that your total debts must be below a certain amount. If your debts are too high, you may not qualify for Chapter 13. The debts are separated into two categories: secured debts (like a mortgage or car loan) and unsecured debts (such as credit card bills or medical bills). The total of both types of debts must stay under the limit set by the court. If your debts exceed this limit, you may need to explore other bankruptcy options.
Credit Counseling
Before filing Chapter 13 bankruptcy in Salem, Oregon, you are required to complete a credit counseling course. This course helps you review your finances and explore other options besides bankruptcy. You must take this course from an approved agency before filing your case. Completing the credit counseling is a step that must be done within 180 days before you file. Without this step, your bankruptcy case may be dismissed.
Non-Dischargeable Debts
Not all debts can be included in a Chapter 13 repayment plan. For example, student loans, child support, and alimony cannot be discharged through Chapter 13. You will still need to pay these debts, even if you’re able to reorganize your other debt. However, most other unsecured debts can be part of the plan, allowing you to repay them over time. It’s essential to know which debts are eligible for discharge under Chapter 13.
Previous Bankruptcy Filings
Your history of bankruptcy can affect your eligibility for Chapter 13. If you have received a discharge in a previous Chapter 7 bankruptcy case, you must wait four years before filing again. If you filed for Chapter 13 before and received a discharge, you must wait two years before filing again. This rule helps ensure that people do not misuse the bankruptcy system. Knowing these time limits can help you plan your next steps.
By meeting these basic eligibility requirements, you can proceed with filing Chapter 13 bankruptcy in Oregon and begin the process of reorganizing your debts. It’s a way to regain control of your financial future and work toward becoming debt-free.
What are the Benefits of Filing Chapter 13 Bankruptcy in Salem, OR? 
Filing for Chapter 13 bankruptcy offers several benefits for individuals facing financial difficulties. This option allows you to reorganize your finances and make a plan to repay what you owe over time. Here are some of the advantages of filing Chapter 13:

• Debt Repayment Plan: Chapter 13 allows you to create a repayment plan that fits your income and budget. You make monthly payments to a trustee, who then distributes the money to your creditors.
• Protection from Creditors: Filing for Chapter 13 stops creditors from harassing you. The automatic stay prevents them from calling, sending bills, or taking legal action against you.
• Discharge Unsecured Debts: At the end of your repayment plan, any remaining unsecured debts may be wiped away. This means that debts like credit card bills or medical bills can be eliminated, giving you a fresh start.
• Prevent Foreclosure and Repossession: If you are behind on your mortgage or car payments, filing for Chapter 13 can stop foreclosure and repossession. The court will put a hold on these actions, giving you time to catch up on missed payments.

How Our Chapter 13 Bankruptcy Attorney in Oregon Can Help
When financial troubles weigh you down, finding the right legal help can make all the difference. At Northwest Debt Relief Law Firm, our Chapter 13 bankruptcy attorney in Oregon, offers the support and guidance you need throughout the process. We provide Chapter 13 filing services in Salem, OR, to help you organize your debt into a manageable repayment plan. 
By working with our bankruptcy law firm, you can create a plan that works for your budget while keeping your property safe. We will help you fill out all necessary forms, submit the petition to the court, and communicate with creditors. We make sure your repayment plan is fair and realistic so you can make progress without falling further into debt. We will work with you every step of the way, helping to relieve the pressure of overwhelming debt.
Don’t let debt control your life. Filing Chapter 13 bankruptcy in Salem, Oregon, could provide you with the relief you need. Contact us today for a free debt solution consultation and take the first step toward a debt-free future.