By: Casey Yontz, Attorney (18+ years bankruptcy experience)

Last updated: November 21, 2025

About the Author

Oregon Bankruptcy Chapter 13: Your Detailed Guide

When people look at Oregon bankruptcy chapter 13, they are often trying to do more than just stop phone calls. They want to save a home, catch up on a car, deal with tax debt, and still keep their lives moving forward. Chapter 13 Oregon cases are built for that kind of situation: you keep making a living, you follow a court-approved payment plan for three to five years, and at the end you can receive a discharge of many remaining unsecured debts.

If you are just starting your research and want a broader overview of Oregon bankruptcy laws before diving into chapter 13 details, you may want to review our Oregon bankruptcy laws and procedures overview first, then come back to this page for a deeper look at chapter 13.

What makes Oregon chapter 13 different from many other options is how flexible it can be. In a single case, you can cure mortgage arrears over time instead of losing your house to foreclosure, spread out vehicle arrears, sometimes pay a car at a reduced interest rate or even reduced principal, address certain tax debts, and structure payments to fit a realistic household budget. Instead of treating it as a backup when you “don’t qualify” for chapter 7, bankruptcy chapter 13 Oregon should be viewed as a more holistic approach that can solve several problems at once under the protection of the court.

This guide walks through how chapter 13 bankruptcy Oregon works in real life: filing chapter 13 in Oregon, how the repayment plan is built, what chapter 13 bankruptcy rules Oregon filers need to know, and how the chapter 13 trustee Oregon reviews and administers your case. The goal is to help you understand what this tool can actually do for you and whether it matches your goals and your family’s financial reality.

What Is Oregon Bankruptcy Chapter 13?

At its core, Oregon bankruptcy chapter 13 is the Oregon version of a nationwide system created by federal law. Chapter 13 comes from the Bankruptcy Code at 11 U.S.C. chapter 13 (sections 1301–1330). It allows an individual with regular income to reorganize debts through a court-approved repayment plan that typically lasts three to five years. When that plan is completed and the other requirements are met, many remaining unsecured debts can be discharged under 11 U.S.C. § 1328, similar in concept to the discharge that happens in a chapter 7 case.

How Oregon Law Shapes Chapter 13

Even though chapter 13 bankruptcy Oregon cases are based on federal law, Oregon law still matters a great deal. Local procedures in the Oregon bankruptcy courts and the Oregon exemption scheme help determine how your budget is calculated, how much certain creditors must be paid over the life of the plan, and whether your chapter 13 plan satisfies the “best interests of creditors” test. For example, exemptions for things like homestead equity are found in the Oregon Revised Statutes, including ORS chapter 18 (judgments and exemptions). For a deeper dive into which protections may apply in your case, see our dedicated Oregon bankruptcy exemptions page.

How a Typical Oregon Chapter 13 Case Works

In a typical bankruptcy chapter 13 Oregon case, you file detailed paperwork listing your income, expenses, assets, and debts, then propose a repayment plan based on what your budget can realistically support. The chapter 13 trustee Oregon assigns to your case reviews your schedules and plan, raises any concerns, and applies the chapter 13 bankruptcy rules Oregon filers must follow. In most cases, you and the trustee resolve those issues and stipulate to plan confirmation, and the court enters a confirmation order without a hearing. In the small number of cases where agreement cannot be reached, the judge decides plan confirmation at a formal hearing. Once your plan is confirmed, most creditors are bound by its terms: it can stop foreclosure, pause most collection activity, organize arrears on a home or vehicle, and move you toward a discharge at the end of the three- to five-year period.

Key benefits of chapter 13 bankruptcy in Oregon include:

• Asset protection: Protect important assets such as your home and car while you catch up on missed payments over time through the plan.
• Stopping collections: Stop foreclosure, most garnishments, and many lawsuits once the chapter 13 case is filed and the automatic stay goes into effect.
• Simplified payments: Roll many debts into a single, more predictable monthly payment that is supervised by the court and paid through the chapter 13 trustee.
• End-of-plan discharge: Position yourself for a discharge of qualifying unsecured debts after you successfully complete the three- to five-year repayment plan.

How Chapter 13 Works in Oregon

Filing chapter 13 in Oregon starts with building a complete picture of your finances and ends, in many cases, with a discharge after three to five years of plan payments. Along the way, the automatic stay, the chapter 13 trustee Oregon assigns to your case, and the Oregon bankruptcy courts all play specific roles under the chapter 13 bankruptcy rules Oregon follows, including the federal Bankruptcy Code and the Federal Rules of Bankruptcy Procedure.

This process is not designed to be a simple do-it-yourself project. The forms, deadlines, local rules, and plan requirements are technical, and mistakes can lead to dismissal or loss of important protections. A knowledgeable chapter 13 attorney in Oregon can help you structure a plan that fits your budget, properly treats mortgage and vehicle arrears, handles priority debts like taxes, and responds to any concerns raised by the trustee or the court. Your attorney will also navigate both the national rules and the Local Rules of the United States Bankruptcy Court for the District of Oregon, which govern many of the procedures in Oregon chapter 13 cases.

Filing Chapter 13 in Oregon: Step by Step

Gathering Your Financial Information

The process begins with gathering documents: proof of income, a list of assets, debts, and monthly expenses, as well as information about recent financial transactions. Your attorney uses this information to prepare the bankruptcy petition, schedules, and a proposed chapter 13 repayment plan that fits your budget and complies with Federal Rule of Bankruptcy Procedure 1007 (lists, schedules, and statements) and related requirements.

What Happens When You File: The Automatic Stay

Once your case is filed, the automatic stay usually goes into effect immediately under 11 U.S.C. § 362. This pause on most collection activity can stop foreclosure sales, wage garnishments, and many lawsuits, giving you breathing room while the court and trustee review your plan.

The 341 Meeting of Creditors

Every chapter 13 bankruptcy Oregon case includes a meeting of creditors (the “341 meeting”), required by 11 U.S.C. § 341. You appear (often by phone or video), answer questions under oath about your finances and paperwork, and the chapter 13 trustee Oregon oversees that meeting. Creditors can attend and ask questions, though in many consumer cases few, if any, actually appear.

Plan Review and Confirmation

After the 341 meeting, the trustee continues to review your plan under the chapter 13 bankruptcy rules Oregon applies, including 11 U.S.C. § 1322 (plan contents) and 11 U.S.C. § 1325 (confirmation standards), along with any applicable Oregon local rules. If there are issues—such as plan length, payment amounts, or treatment of certain debts—you and your attorney typically work with the trustee to resolve them. In most cases, you and the trustee reach agreement and stipulate to confirmation, and the court enters a confirmation order without a hearing. If agreement cannot be reached, the judge decides plan confirmation at a formal hearing.

Making Plan Payments and Moving Toward Discharge

Once the plan is confirmed, you make regular monthly payments to the trustee, who distributes the funds to creditors according to the confirmed plan. Payments in chapter 13 are governed in part by 11 U.S.C. § 1326, which addresses how and when plan payments are made and disbursed. As long as you stay current on plan payments and any direct payments you must make (such as an ongoing mortgage), you move steadily toward the end of the three- to five-year period and potential discharge of qualifying unsecured debts.

Key stages of a chapter 13 case in Oregon include:

• Preparation and filing: Gather financial documents, complete required credit counseling, and file the chapter 13 petition, schedules, and proposed plan with the Oregon bankruptcy court.
• Automatic stay protection: Benefit from an immediate pause on most collection efforts, foreclosures, and garnishments while the case is pending under 11 U.S.C. § 362.
• 341 meeting and trustee review: Attend the meeting of creditors required by 11 U.S.C. § 341 and respond to questions while the chapter 13 trustee reviews your plan and applies the chapter 13 bankruptcy rules Oregon follows.
• Plan confirmation: Work through any objections or requested changes under 11 U.S.C. §§ 1322 and 1325; in most cases, the trustee and debtor stipulate to confirmation and the court enters a confirmation order without a hearing.
• Plan payments and discharge: Make monthly plan payments over three to five years as outlined in 11 U.S.C. § 1326; if you complete the plan and meet the other requirements, you may receive a discharge of qualifying unsecured debts at the end.

Who Qualifies for Chapter 13 in Oregon?

Not everyone can file chapter 13 in Oregon. The Bankruptcy Code sets baseline rules about who is eligible, and the Oregon bankruptcy courts apply those rules in real cases. In broad terms, chapter 13 Oregon cases are meant for individuals (not corporations or LLCs) who have regular income, stay under the chapter 13 debt limits, complete required credit counseling, and can show a realistic ability to make plan payments.

On top of those national rules, you must also be in the right court. Most people filing chapter 13 bankruptcy Oregon cases will file in the District of Oregon because they live here, own property here, or have most of their financial affairs centered in the state. An experienced chapter 13 attorney can help you confirm that Oregon is the proper venue and that you meet the technical requirements under 11 U.S.C. § 109.

At a high level, basic chapter 13 eligibility for Oregon filers usually includes:

• Being an individual with regular, predictable income
• Staying under the current chapter 13 debt caps for secured and unsecured debts
• Completing a pre-filing credit counseling briefing from an approved agency
• Not being barred by a recent bankruptcy dismissal under the 180-day rule
• Showing enough disposable income in your budget to support a feasible plan

Because these requirements involve both detailed federal rules and practical budgeting, most people are better off having an experienced Oregon chapter 13 attorney review their situation. A brief consultation can often confirm very quickly whether bankruptcy chapter 13 Oregon is even on the table and, if so, what adjustments might be needed to qualify and propose a workable plan.

Oregon Bankruptcy Exemptions and Chapter 13 Plans

In a chapter 13 bankruptcy Oregon case, exemptions determine how much your unsecured creditors must receive through the plan. The court compares what unsecured creditors would have been paid in a hypothetical chapter 7 case (after applying Oregon exemptions) with what they are being paid in your chapter 13 plan. Your plan generally has to pay at least that much to satisfy the “best interests of creditors” test.

Oregon’s exemption scheme, together with any available federal exemptions, plays a key role in that calculation. Exemptions for things like homestead equity, vehicles, household goods, and retirement accounts all affect how much nonexempt value would be available in a chapter 7 case and, in turn, the minimum that unsecured creditors may need to receive in an Oregon bankruptcy chapter 13 plan.

At a high level, exemptions matter in chapter 13 because they help determine:

• Minimum plan payments to unsecured creditors: How much nonexempt value would need to be matched or exceeded through your chapter 13 plan.
• Plan structure: Whether your proposed payment amount and plan length are sufficient to satisfy the best-interests test and be confirmable by the Oregon bankruptcy court.

The specific dollar amounts and categories of exempt property are detailed in Oregon law and can change over time. For a deeper breakdown of what may be protected in your case, including homestead and personal property exemptions, see our dedicated Oregon bankruptcy exemptions page or talk with an experienced Oregon chapter 13 attorney about how those exemptions would apply to your situation.

Benefits and Drawbacks of Chapter 13 Bankruptcy

Why Oregon Bankruptcy Chapter 13 Can Be a Powerful Tool

For many people, chapter 13 bankruptcy Oregon cases offer solutions that simply are not available outside of bankruptcy. A confirmed plan can give you time to cure mortgage arrears, save a vehicle, and deal with tax debt while you stay under court protection. Instead of juggling multiple creditors, you focus on one structured payment through the chapter 13 trustee.

In the right situation, an Oregon bankruptcy chapter 13 plan can:

• Catch up on secured debts: Spread out past-due mortgage or vehicle payments over three to five years instead of facing immediate foreclosure or repossession.
• Adjust how some car loans are paid: In certain cases, pay a vehicle based on its current value or at a reduced interest rate, subject to the chapter 13 rules and Oregon practice.
• Organize tax and other priority debts: Put IRS or state tax debts into a court-approved schedule, often stopping levies and garnishments while the plan is in place.
• Protect you from collection pressure: Use the automatic stay and confirmed plan to stop most collection activity and replace chaos with a single monthly obligation.
• End with a discharge: After you complete the plan and meet the other requirements, many remaining unsecured debts can be discharged, giving you a more stable starting point for the future.

If your main goal is to quickly discharge unsecured debts and you are not trying to cure mortgage or vehicle arrears, you may also want to review our Oregon Chapter 7 bankruptcy guide to compare options.

Challenges and Tradeoffs in an Oregon Chapter 13 Case

Chapter 13 also comes with real commitments. A typical chapter 13 Oregon plan lasts three to five years, and the court expects you to stay current on plan payments and any required direct payments (such as an ongoing mortgage). If your income changes, expenses spike, or payments fall behind, the trustee can seek dismissal or modification of the plan.

Some of the main drawbacks and pressures include:

• Long-term budgeting commitment: You must live within a court-reviewed budget for several years, with less flexibility for unplanned spending.
• Risk of dismissal: Missing plan payments, failing to turn over required documents, or falling out of compliance with court orders can lead to dismissal and loss of protections.
• Ongoing court and trustee oversight: Major financial changes, such as new debt or selling significant property, often require notice or approval.
• Impact on credit and borrowing: Like other bankruptcies, chapter 13 will appear on your credit report and can affect access to new credit for years.

Because these benefits and tradeoffs are highly fact-specific, it usually makes sense to sit down with an experienced Oregon chapter 13 attorney. They can walk through your income, debts, assets, and goals and help you decide whether chapter 13 bankruptcy Oregon is a good fit or whether a different strategy would better serve you and your family.

Life During and After Chapter 13 Bankruptcy

Life During an Oregon Chapter 13 Plan

Living under a chapter 13 bankruptcy Oregon plan means committing to a court-approved budget for three to five years. You make regular payments to the chapter 13 trustee, who distributes those funds to creditors according to your confirmed plan. Missing payments or ignoring court requirements can put the case at risk, so consistency is critical.

Day to day, you can still work, pay your normal living expenses, and make ordinary financial decisions, but you need to be more intentional. Many Oregon filers set up automatic payments to the trustee or have payments deducted from their paycheck to reduce the chance of falling behind. You will also need to stay current on any direct payments the plan requires you to make, such as ongoing mortgage or car payments.

During the plan, it is common for the court or trustee to require you to provide updated tax returns or pay stubs from time to time, and in some cases part of your tax refunds may need to be turned over as part of the plan. Keeping good records and communicating with your attorney when something changes—job loss, raise, new medical expenses—can make adjustments much smoother.

Life After Completing Chapter 13 in Oregon

When you successfully complete your Oregon bankruptcy chapter 13 plan and meet the other requirements, the court can enter a discharge order for qualifying unsecured debts under 11 U.S.C. § 1328. At that point, many old credit cards, medical bills, and certain other unsecured debts that were provided for in the plan are legally wiped out.

The end of a chapter 13 case does not erase every consequence—bankruptcy will still appear on your credit report—but it does give you a clearer financial baseline. You have had several years of making consistent payments, you are usually more current on secured debts like a mortgage or car, and you have fewer lingering unsecured balances dragging you down.

Rebuilding After Chapter 13

After discharge, many people in Oregon find that their financial life feels more predictable. With the plan behind you, it becomes easier to:

• Rebuild credit gradually: Use on-time payments for rent, utilities, and any new, carefully chosen credit accounts to show a stronger payment history over time.
• Stabilize savings: Redirect money that was going to the trustee into an emergency fund, retirement accounts, or other long-term goals.
• Protect key assets: Move forward with a home, vehicle, or other essential property that you were able to keep current or bring out of default through the chapter 13 plan.

Chapter 13 is a serious commitment, but for many Oregon filers it becomes a structured path from crisis to stability. Working closely with an experienced Oregon chapter 13 attorney—both during the case and as you transition out of it—can help you make the most of the protection and fresh start the law is designed to provide.

Frequently Asked Questions About Oregon Chapter 13 Bankruptcy

How Long Does an Oregon Chapter 13 Case Usually Last?

In most Oregon bankruptcy chapter 13 cases, the repayment plan runs between three and five years. The Bankruptcy Code generally requires a three-year minimum and allows up to five years, depending on your income and other factors under 11 U.S.C. § 1322(d). Your attorney will help you decide whether a 36-month or 60-month plan makes more sense based on your budget, debt mix, and the chapter 13 bankruptcy rules Oregon courts apply.

Who Qualifies for Chapter 13 in Oregon?

Chapter 13 Oregon cases are generally available to individuals (not corporations or LLCs) who have regular income, stay under the chapter 13 debt limits in 11 U.S.C. § 109(e), complete pre-filing credit counseling, and can show enough disposable income to fund a feasible plan. For a more detailed breakdown, see the “Who Qualifies for Chapter 13 in Oregon?” section and the eligibility table above on this page, or talk with an Oregon chapter 13 attorney about your specific situation.

Can I Keep My Home and Car in an Oregon Chapter 13?

One of the main reasons people choose filing chapter 13 in Oregon is to protect a home or vehicle that is behind on payments. If you have enough income to support the ongoing mortgage or car payment plus a reasonable plan payment, chapter 13 bankruptcy Oregon often allows you to:

• Catch up on mortgage arrears over three to five years instead of facing immediate foreclosure, and
• Spread out past-due car payments and, in some cases, change how the car loan is treated under the plan.

Whether you can keep a particular home or vehicle depends on your income, loan terms, equity, and how Oregon exemptions and the best-interests test apply. An experienced chapter 13 attorney in Oregon can run the numbers and explain the realistic options.

Can You Convert Chapter 13 to Chapter 7 in Oregon?

In many cases, yes. Under 11 U.S.C. § 1307(a), a chapter 13 debtor can ask to convert the case to chapter 7, as long as they are eligible for chapter 7 and the court does not find abuse or other disqualifying issues. In Oregon, this usually involves filing a motion or notice to convert and then updating schedules and other documents for the new chapter.

Converting from Oregon bankruptcy chapter 13 to chapter 7 is a major decision. In chapter 7, a trustee can potentially sell nonexempt assets, and the means test and other chapter 7 rules apply. Before converting, it is important to talk with an Oregon bankruptcy attorney about:

• Whether you pass the chapter 7 means test,
• How Oregon exemptions would apply in a chapter 7 liquidation analysis, and
• Whether any recent financial transactions could cause problems in chapter 7.

Can Child Support Arrears Be Included in Chapter 13 in Oregon?

Yes, child support arrears can and should be listed and addressed in a chapter 13 Oregon plan, but they are treated as a “domestic support obligation” (DSO), which has special protection under the Bankruptcy Code. Past-due support is generally a priority debt that must be paid in full through the plan under 11 U.S.C. § 1322(a)(2), and ongoing support must continue to be paid directly.

Chapter 13 bankruptcy Oregon does not wipe out child support, but it can give you a structured way to catch up on arrears over time while the plan is in place. The automatic stay is also limited when it comes to support collection, so it is critical to work closely with your attorney to coordinate your chapter 13 plan with any existing Oregon child support orders.

How Much Does It Cost to File Chapter 13 in Oregon?

There are three main cost components in a typical Oregon chapter 13 case: the court filing fee set by the federal judiciary, attorney’s fees (often paid partly through the plan), and the chapter 13 trustee’s percentage fee that is built into plan payments. The filing fee is the same across the country for chapter 13 cases, while attorney’s fees and trustee percentages can vary based on the complexity of your case and local practice in the District of Oregon.

Most Oregon chapter 13 attorneys will explain their fee structure during an initial consultation and walk you through how much will be due upfront versus paid over time through the plan. Because cost depends heavily on your facts and the work involved, a short conversation with counsel is usually the best way to get a realistic estimate.

Is Chapter 13 Bankruptcy in Oregon Right for You?

Deciding whether Oregon bankruptcy chapter 13 is the right move takes more than checking a few boxes. It means looking closely at your income, the kinds of debts you have, how far behind you are on things like a mortgage or car, and what you want your financial life to look like three to five years from now. Chapter 13 Oregon plans can solve several problems at once, but they also ask you to commit to a court-supervised budget for a significant period of time.

If you are weighing chapter 13 bankruptcy Oregon against chapter 7 or non-bankruptcy options, it usually makes sense to get specific, personalized advice instead of guessing. An experienced Oregon chapter 13 attorney can review your pay stubs, tax returns, assets, and creditor list, apply the chapter 13 bankruptcy rules Oregon courts actually use, and walk you through realistic scenarios: what the plan payment might be, how long it would run, and what debts could be discharged at the end.

With a clear understanding of the numbers and the rules, filing chapter 13 in Oregon can shift your situation from crisis to a structured plan with an end point. Whether you ultimately move forward with bankruptcy or choose a different path, taking the time to get solid legal advice is one of the most important steps you can take toward a more stable financial future.

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Browse our state guides to learn exemptions, means test rules, costs, and local procedures. Use these links to jump between states and compare your options.

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