Oregon foreclosure filings up; Chapter 13 can help struggling homeowners
With foreclosures on the rise, Chapter 13 bankruptcy can be a much needed lifeline for those trying to save their home.
May 08, 2013
According to a new report, court-supervised foreclosures have increased in Oregon in each of the first three months of 2013. Gorilla Capital, a company based in Eugene that resells foreclosed homes, reported that in Oregon's seven largest counties, 1,200 properties were named in court filings in March, up from 996 in April.Oregon's foreclosure numbers are down compared to the same time period last year, but still remain at historically high levels. Many Oregonians are still struggling to save their homes; for some of them, Chapter 13 bankruptcy can be a workable solution.
Chapter 13 can stop foreclosure, allow homeowners to catch up on mortgage
Chapter 13 bankruptcy is sometimes referred to as a "wage earner's plan." This type of bankruptcy is geared toward those consumers who have a regular income, but are unable to keep up with their debts.
Chapter 13 bankruptcy generally does not involve the surrender and sale of any of a filer's property. Instead, a Chapter 13 filer works with his or her attorney to draft a repayment plan which must be approved by a bankruptcy court. The repayment plan spans a three to five year term, and under the plan, debts are consolidated; a Chapter 13 filer makes a single periodic payment to a bankruptcy trustee, who in turn distributes payment to various creditors. Payments are typically lowered under the Chapter 13 plan, making it more realistic for the filer to keep up.
During the repayment term, creditors will be fully or partially repaid. At the end of the repayment term, most types of remaining unsecured debt will be discharged completely.
So why is Chapter 13 bankruptcy particularly advantageous for homeowners? Upon filing for Chapter 13 bankruptcy, a legal tool known as an "automatic stay" goes into effect. The automatic stay will halt foreclosure proceedings. If a Chapter 13 filer wishes to keep his or her home, the repayment plan can be structured to make up for past-due mortgage payments. The filer can defeat the foreclosure and keep his or her home by successfully completing the Chapter 13 plan and making all required mortgage payments that come due during the three to five year repayment term.
Learn more from an Oregon Chapter 13 bankruptcy attorney
Clearly, many homeowners in Oregon are still facing financial challenges. If you are one of them, Chapter 13 bankruptcy may give you the opportunity to save your home and get out from under an oppressive debt load. Talk to an Oregon bankruptcy attorney today to learn more about Chapter 13 bankruptcy and how it can help you defeat a foreclosure action.
Article provided by The Law Offices of Alexzander C. J. Adams, P.C.
Visit us at www.portlandbk.com