OlsenDaines’ 7th Annual Turkey Giveaway

a roasted turkey on a plate with trimmings and gravy

It’s that time of year again. With the weather cooling down and the holidays just around the corner, the OlsenDaines team is gearing up to give back to our local community. Later this month, we’re holding our seventh annual turkey giveaway for families in need. We have 350 turkeys to give away, and the event is first come, first served – so if your family needs a turkey, don’t hesitate to stop by.

Starting at 9 am on Monday, November 25th, we’ll be set up at our Salem location – 3995 Hagers Grove Rd SE, Salem, OR. We’ll be there until our supply runs out; see you there!

Limit one turkey per family. Download our flyer here.

Is Bankruptcy an Option If You Default on Your Mortgage?

Oregon woman wonders if bankruptcy is best option for her after defaulting on her mortgage payment

If money feels tight, you’re not alone. Inflation and the high cost of living have made it a challenge for many Oregonians and Washingtonians to make their monthly mortgage payment. Home foreclosures and mortgage defaults are increasing nationwide. If you’re one of the many thousands of Americans in that position, you may wonder if bankruptcy is an option for you.

If you’ve defaulted on your mortgage or you’re in foreclosure, is bankruptcy an option you should consider? Let’s talk about a few of the factors you should consider.

I’m in Mortgage Default – Should I Consider Bankruptcy?

If you’ve defaulted on your mortgage and you’ve considered bankruptcy, you’re doing the right thing in exploring all of your options. Take the next few weeks to gather all of the information you need so you can make an informed decision. That may include consulting with an experienced bankruptcy attorney.

After your mortgage is in default, it can enter foreclosure.

Can Bankruptcy Stop Foreclosure?

If you’re facing foreclosure, bankruptcy won’t magically make it go away. Think of bankruptcy more like a “time out” – an opportunity to figure things out and reorganize debt to make it more manageable.

Before you file for bankruptcy, you need to decide what your goal is – are you most interested in discharging your debt, or keeping your home? You might be able to do both. Let the answer to this question determine your next move.

If You Want to Discharge Your Mortgage Debts

If you’re in significant debt and relief from that debt is your top priority, you may want to consider Chapter 7 bankruptcy. 

Sometimes it is just best to let the home go and start fresh.  If you’re in foreclosure, filing Chapter 7 will put an automatic stay on proceedings while the case is pending. This is temporary – typically about three or four months. As a result of your Chapter 7 bankruptcy, the court will discharge all of your dischargeable debt. Once the Chapter 7 is over, the foreclosure proceedings will resume.  This will give you time to move out in an orderly fashion.

If You Want to Keep Your Home

If you’re in foreclosure and want to keep your home, you will want to file for Chapter 13 bankruptcy. Filing for Chapter 13 bankruptcy will put an automatic stay on foreclosure proceedings. Filing Chapter 13 allows you to reorganize your debts into a more manageable payment plan, and as long as you adhere to the plan, you can keep your home.  Part of the reorganization payment will go to making up the missed home payments.

Can Bankruptcy Help with Mortgage Defaults?

As always, the details of every case are unique – we can’t provide one-size-fits-all answers. We’re here to provide you with some basic information that will help you decide whether to get in touch with a bankruptcy attorney.

If you’re in Oregon or Washington, the bankruptcy attorneys at OlsenDaines will be happy to discuss the details of your case with you. Feel free to send us an email, or call to schedule a free consultation in our office.

Or check out more of our bankruptcy FAQs here.

Protecting Your Assets During Bankruptcy

worried young couple reading bankruptcy paperwork for asset protection during Chapter 7, Chapter 13 bankruptcy

The prospect of filing for bankruptcy can be daunting, primarily because of the fear of losing personal assets — especially your home. However, many U.S. states have crafted specific exemptions designed to protect the essentials, allowing people to maintain a semblance of normalcy and security as they work through their financial recovery.

Bankruptcy often carries a stigma of financial defeat, but in reality, it is a legal tool designed to provide relief and a pathway to a fresh start for those overwhelmed by debt. 

At OlsenDaines, we’re all too familiar with the complexities of bankruptcy law and are dedicated to navigating our clients through this challenging process. In this guide, we’ll discuss both Chapter 7 and Chapter 13 bankruptcy filings and strategies that protect your assets while relieving your financial burdens.

Which Assets Are Protected in Bankruptcy?

Chapter 7 bankruptcy provides a way to discharge most of your unsecured debts, and it also allows you to keep key assets. These exemptions under Oregon & Washington laws play a critical role in allowing individuals to reset their financial lives without losing everything they have worked hard to acquire:

  • Homestead Exemption: One of the most significant protections, this exemption allows individuals to protect substantial equity in their homes. States the exemption amount periodically, but it’s designed to keep you in your home without the threat of forced sale under bankruptcy proceedings.
  • Vehicle Exemption: Essential for personal transportation to and from work, this exemption protects a portion of your vehicle’s equity.
  • Retirement and Pension Accounts: These are fully protected under both state and federal laws. 
  • Personal Property: This category covers a broad array of items, from household goods and furnishings to personal clothing and some types of jewelry, each up to a specified value. 

Unlike Chapter 7, Chapter 13 bankruptcy doesn’t involve liquidating your assets but rather restructuring your debts. Under Chapter 13:

  • You keep all your assets while making more manageable monthly payments toward your debt based on a court-approved repayment plan.
  • You consolidate your debts and possibly reduce interest rates or eliminate certain penalties.
  • You can halt the foreclosure process and allow you to catch up on missed mortgage payments through your repayment plan.

Can a Trust Protect Assets in Bankruptcy?

Utilizing trusts in financial planning can sometimes protect assets from bankruptcy, but the level of protection depends on the type of trust.

Revocable trusts allow you to maintain control over your assets and amend or revoke the trust at any time. Because you retain control, these assets are generally still accessible to creditors during bankruptcy proceedings. Irrevocable trusts require you to relinquish control over the assets you transfer into the trust. Because you no longer control these assets, they are usually out of reach from creditors. 

Yet, it’s important to establish such trusts long before any financial trouble arises as recent transfers can be scrutinized and potentially undone by bankruptcy courts.

It’s important to note that the protective strength of a trust can be undermined if it appears to be set up explicitly to avoid creditors. Trusts created shortly before filing for bankruptcy, or those that transfer substantial assets, may be scrutinized or even dissolved under fraudulent transfer laws. Honest and timely planning is key to utilizing trusts effectively for asset protection.

Can I File Chapter 7 and Keep My House?

Filing a Chapter 7 bankruptcy can temporarily stop the sale of your home (because of the “automatic stay”) but that does not mean it will ultimately save your home from foreclosure. 

Foreclosure laws differ from state to state and they are very complicated. If you are facing foreclosure, it’s important that you understand at least some of the basics, including the difference between a judicial foreclosure and a nonjudicial foreclosure, and:

  • How much time you have to respond to notices.
  • What your rights are and what laws protect you in foreclosure.
  • What happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

While a Chapter 7 will give you the benefit of the automatic stay, bringing the foreclosure to a halt until discharge or the stay is lifted, unlike a Chapter 13 bankruptcy, it will not allow you to catch up on missed mortgage payments. That’s because Chapter 7 is a liquidation bankruptcy designed to discharge (wipe out) unsecured personal debts (e.g., credit card debt and medical bills). 

Chapter 7 will erase personal liability on the note, but it won’t eliminate the lien. This means that if you are behind in your mortgage payments, your lender can foreclose on your property. It also means that the lender can continue a foreclosure that was delayed by your bankruptcy once you are discharged or a relief from the automatic stay (“relief from stay”) is granted. The same applies to other liens on the property, like HOA or condominium liens. No deficiency.

Whether a Chapter 7 is the right option for you is something that you should discuss with a bankruptcy attorney. Here at OlsenDaines, our bankruptcy attorneys know the options and care about the outcome. That’s why OlsenDaines offers free consultations, so we can sit down with you and help you decide what is the best approach for you and your family.

Can an HOA Foreclose on a Home After Bankruptcy?

An HOA may be able to foreclose on your property depending on your specific situation, even if you are granted bankruptcy. Here are some instances where an HOA can foreclose on your property after bankruptcy:

  1. Your foreclosure has already taken place. Bankruptcy cannot undo a foreclosure that has already taken place. So, if the HOA has already foreclosed on your property and the home is no longer in your name, the outcome of your bankruptcy petition will not be able to reverse the process.
  2. The HOA filed a lien against your property. Once an HOA files a lien against your property, they may begin the foreclosure process. Though you are granted an “automatic stay” while filing for bankruptcy – meaning that the HOA cannot move forward with the foreclosure process during your petition – they may be able to resume the process once you are granted bankruptcy. Bankruptcy cannot get rid of a lien filed against you even if your debts are discharged, so your property may still be foreclosed on.
  3. You accrue more fees after bankruptcy. Bankruptcy will only discharge debts accrued prior to your petition, so you will be responsible for any fees due after you are granted bankruptcy. This is true even if you are forfeiting the property; you will have to pay any fees that accumulate between the time you are granted bankruptcy and the sale of your home. To avoid accruing more fees and debt, it is best to wait until the property is sold before filing for bankruptcy if you are planning to surrender the home.

Can I Discharge My HOA Debt Through Bankruptcy?

Your specific circumstances will impact whether or not you can dismiss HOA debt by filing for bankruptcy. To determine if your HOA fees can be discharged, begin by asking yourself these questions:

  • Which chapter of bankruptcy am I filing for? The two most common chapters of bankruptcy are Chapter 7 and Chapter 13. While Chapter 7 bankruptcy is intended for lower-income individuals with fewer assets, Chapter 13 is geared toward those with more assets and disposable income. Knowing which chapter you qualify for will give you a better understanding of what your debt relief options are.
  • Do I plan to keep the property? With both chapters of bankruptcy, you should be able to wipe out past HOA dues by forfeiting the property. However, if you plan to keep your condo or home, you will still be responsible for paying your HOA debts.

With Chapter 7 bankruptcy, you should treat the HOA like a bank holding a mortgage and plan to make payments both before and after you file. It’s important to know that the HOA could still foreclose on your home if they have a lien on your property, even if your debts are discharged.

Meanwhile, if you are filing for Chapter 13 bankruptcy and plan to keep the property, your repayment options may look a little different. Since this chapter allows you to reconfigure your debts into a payment plan, your past HOA fees should be included in your monthly installment.

Your Oregon & Washington Bankruptcy Experts

Here at OlsenDaines, we understand how stressful and complicated it can be to file for bankruptcy. That is why our experienced attorneys are always here to help. We strive to make the process as fast and easy as possible while ensuring that you are getting the most out of your petition. 

With over 46 years of experience serving people throughout Oregon & Washington, we are very familiar with local bankruptcy laws and are prepared to help you regain control over your finances so you can truly start fresh. 

If you are looking into bankruptcy and would like to speak with an expert, contact us today to set up a free legal consultation!

Can Bankruptcy Help in Medicaid or Medicare Termination for Healthcare Providers?

Chief of Medicine medical board member from a healthcare provider service discussing Chapter 11 bankruptcy with an attorney, dealing with Medicare/Medicaid service termination

The answer as to whether bankruptcy can help healthcare providers in Medicaid or Medicare termination varies by jurisdiction, but it generally leans towards a conditional yes. It all depends on how bankruptcy courts address the termination.

Medicare and Medicaid payments make up a significant amount of total revenue for many healthcare providers. So you as a healthcare provider may wonder whether you can use Chapter 11 bankruptcy to prevent a federal or state agency from terminating your Medicare or Medicaid provider agreements. 

Recent developments in bankruptcy case law have introduced potential leverage for healthcare providers. Courts have challenged the traditional view that transferees must assume all liabilities when Medicare and Medicaid provider agreements are transferred in bankruptcy. As bankruptcy experts, our team has kept a close eye on these types of cases, and offers free consultations to healthcare providers facing possible terminations.

How the Law Interprets Bankruptcy Considering Medicare/Medicaid Termination

A bankruptcy court has two ways it can attempt to halt the termination: through an automatic stay pursuant to the Bankruptcy Code, or by ordering an injunction to maintain the status quo throughout the bankruptcy proceedings (thus keeping the provider agreement in place at least temporarily). 

An automatic stay is simply an automatic injunction that prevents creditors from taking actions to collect debts from a debtor who has declared bankruptcy. However, there are certain statutory exceptions to an automatic stay, including one for actions falling within the government’s use of “police and regulatory power.”

Cases like those of Center City Healthcare and Verity have seen provider agreements treated as “statutory entitlements” that could be sold free and clear of successor liabilities rather than as “executory contracts” that require the acceptance of all associated liabilities.

Regarding the method of a separate court-ordered injunction, some question whether government actions pertaining to the Medicare and Medicaid Act are even within a bankruptcy court’s jurisdictional powers to begin with.

The Eleventh Circuit Court of Appeals (encompassing Florida, Georgia, and Alabama) has addressed the question of jurisdiction. According to the Eleventh Circuit, a bankruptcy judge does not have the authority to stop a government action related to the Medicare and Medicaid Act.

As to the automatic stay, the First Circuit Court of Appeals (encompassing Maine, New Hampshire, Massachusetts, and Rhode Island) found that the government could still terminate the Medicare and Medicaid provider agreements based on the statutory exception for police power. Meanwhile, the Supreme Court has so far not taken the opportunity to weigh in.

As things stand now, there are only two definitive answers to the question of whether bankruptcy is a guaranteed shield against the government terminating a provider agreement: maybe, and wait and see.

Have any additional questions about bankruptcy? Read our Bankruptcy FAQs here.

Let the Bankruptcy Experts Handle Your Business with Care

Navigating the complexities of Medicare and Medicaid provider agreements can be more than daunting. Our experienced legal team understands the unique challenges faced by the healthcare sector and is adept at leveraging the latest legal developments to protect your interests.

At OlsenDaines, we specialize in providing comprehensive Chapter 11 bankruptcy services tailored specifically for healthcare providers in Oregon & Washington. 

Whether you are contemplating restructuring or need to defend against the termination of provider agreements, our attorneys are here to ensure your business can continue operating without the overwhelming burden of government liabilities. We guide you through every step of the bankruptcy process, from filing to final resolution, ensuring that you have the best possible defense against any adverse government actions.

Don’t let the complexities of bankruptcy law hinder your healthcare business. Contact us today to learn how our specialized services can provide the legal protection you need.

Student Loan Debt Forgiveness: Is Bankruptcy an Option?

Photograph of a figurine of unhappy female graduate in cap and gown buried under stacks of U.S. paper currency, suggesting the idea of the crushing student loans with looming possibility of filing for bankruptcy

Any debt relief is good relief for those who owe on their student loans, including forgiveness programs and bankruptcy. Federal student loan payments were paused starting in March 2020, and years later, the U.S. Department of Education announced that (most) borrowers had to resume payments as of October 2023.

Though the decision to continue student loan payments was disappointing for borrowers across the country, that doesn’t mean it’s time to despair. Historically, student loans have been considered non-dischargeable through bankruptcy. However, thanks to the Department of Education’s recent policy changes student loan discharge is more accessible through bankruptcy than ever before. 

If you’re in this situation, there’s still some hope. Many people are unaware that there are several different ways they can achieve student loan forgiveness. In these complex times, you may find yourself in need of a student loan legal counsel from OlsenDaines to help you navigate through the red tape and explain all of your options to you. At the very least, we can give you a better idea of the options, including filing for bankruptcy.

Am I Eligible for Student Loan Forgiveness Programs?

Eligibility for student loan forgiveness programs can vary depending on factors such as your profession, income, loan type, and repayment history. Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and Income-Driven Repayment (IDR) plans are just a few examples of the options out there. 

Public Service Loan Forgiveness

To provide relief for full-time employees of government services or non-profit organizations, the federal government also offers Public Service Loan Forgiveness (PSLF). This allows the student loans to be forgiven after 120 qualifying payments, or just ten years while working for a qualifying public service organization. Some examples of qualifying employers include:

  • Military Service
  • Public Health
  • Public Education
  • Social work
  • Early Childhood Education
  • 501(c)(3) Tax-Exempt Organizations

It’s important to note that the 120 payments do not need to be consecutive, but you must fill out paperwork to delineate which payments contribute toward your forgiveness plan. Additionally, not all employers qualify for PSLF. 

What Is an Income-Driven Repayment Plan (IDR)?

Income-driven repayment (IDR) plans are designed to help individuals who have student loan payments that are disproportionately high compared to their income. These plans calculate your required payments based on how much you earn annually rather than how much you owe. As a result, your payments could be lower and much more affordable than standard repayment options. 

Income-driven repayment plans (IDRs) use your family size and discretionary income to determine an appropriate monthly payment amount. For many people, the IDR can significantly lower monthly payment amounts. IDR plans offer complete loan cancellation after making a certain number of qualifying payments — typically over the course of 20 or 25 years. 

Borrowers may qualify for one of these types of IDR plans:

Repayment Plan % of Discretionary Income Repayment Period
Saving on a Valuable Education (SAVE) Plan 10% 20 years (for only undergraduate loans)
25 years (if you have any graduate or professional loans)
Pay As You Earn (PAYE) 10% 20 years
Income-Based Repayment (IBR) Plan (first borrowed after July 1, 2014) 10% 20 years
Income-Based Repayment (IBR) Plan (borrowed before July 1, 2014) 10% 25 years
Income-Contingent Repayment (ICR) 10% 25 years

The main differences between these plans are the percentage of your discretionary income required in each monthly payment and the amount of time you must make payments before qualifying for forgiveness. 

Saving on a Valuable Education (SAVE) Plan

In addition to the IDR plans above, the Biden Administration has also announced a new plan called the Saving on a Valuable Education (SAVE) plan. This plan has the lowest monthly payment of any available repayment option and offers a number of other benefits to make the debt more manageable. SAVE is rolling out in the summer of 2023 and will go into full effect in July 2024.

Do FFELP Loans Qualify?

Not exactly. Though Federal Family Education Loan Program (FFELP) loans can benefit from these updates to student loan forgiveness, borrowers must apply to consolidate any commercially held loans into a Direct Consolidation Loan to qualify. 

FFELP student loans are privately owned but federally backed. Most loans taken out prior to 2010 are FFELP loans, though your service provider can help you determine which type of loan you have if you aren’t certain.

To truly understand if you qualify for any of these programs, it’s highly recommended that you consult with a knowledgeable student loan lawyer at OlsenDaines. We can assess your unique situation and guide you toward the best course of action.

Filing for Bankruptcy with Student Loans

When student loan debt is crushing your financial plans, you might consider filing for bankruptcy. Chapter 7 and Chapter 13 are the two most common types of bankruptcy for student loan debt.

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” allows for the discharge of most unsecured debts, giving you a fresh financial start. However, student loan debt is notably difficult to discharge under Chapter 7. To have student loans discharged, borrowers must prove “undue hardship,” a stringent standard requiring them to demonstrate that repaying the loans would impose an extreme financial burden. 

Unfortunately, there is no strict definition of undue hardship. The Department of Education has established a list of guidelines that can help determine whether a borrower qualifies. Some examples of factors that can contribute to ‘undue hardship’ include:

  • If the borrower has a disability.
  • If the borrower made a good-faith effort to repay the loans.
  • If the borrower’s income is below the poverty line for their state.

Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” allows you to restructure your debts into a manageable repayment plan over three to five years. While Chapter 13 does not discharge student loan debt, it offers significant relief by halting collection actions and allowing for the inclusion of student loan payments in the repayment plan. This can provide borrowers with temporary relief from high monthly payments and additional time to improve their financial situation. 

After completing the Chapter 13 plan, you must continue to repay any remaining student loan debt, but they may find it more manageable after addressing other financial obligations.

So do you file for bankruptcy, hoping for a fresh start, or do you slug it out, paying off those student loans the hard way? Either way, you don’t want to go it alone. You need someone in your corner – a student loan lawyer.

What Can a Student Loan Lawyer Do for You?

First and foremost, a student loan lawyer, like ours at OlsenDaines, will fight for you and advocate for your rights and best interests. We have the expertise to review your loans, determine if there are any violations or predatory practices, and create a legal strategy to move forward. We’ll negotiate on your behalf with lenders to secure more favorable terms or lower interest rates. We can also represent you in legal proceedings if the need arises. We’ll pursue any and all options to have the debt dismissed or forgiven, if those are possibilities.

A student loan lawyer is a powerful ally who will relentlessly champion your cause and work towards relieving the burden of your student loans.

How Much Does a Student Loan Lawyer Cost?

The fees charged by student loan lawyers will depend on several factors, including the complexity of your case, the services required, and the attorney’s experience and reputation. Setting up a consultation with an attorney can give you a more concrete answer. 

During the consultation, we will take the time to understand your needs, evaluate the intricacies of your case, and provide you with a clear understanding of the potential costs involved. Our goal is to be transparent and work with you to find a solution that aligns with your budget and provides the dedicated legal support you deserve.

We’ll Guide You Through Bankruptcy Options for Student Loan Relief

Though there are several methods for obtaining relief from student loans, the process is rarely easy. But you don’t have to face it all on your own. The debt relief attorneys at OlsenDaines can help you create a plan of action. 

We strive to provide our clients with the information and resources they need to combat debt and find financial stability. By enlisting our expertise, you gain an advocate who will fight for your rights, provide you with comprehensive legal advice, and equip you with the tools needed to overcome the challenges that student loans pose. 

With over 46 years of experience serving Oregon & Washington residents, we know how to access creative relief solutions that can take the stress of serious debt off of your shoulders. From finding other forms of student loan forgiveness to eliminating debts through bankruptcy, we can help you reach financial freedom no matter what your circumstances are.

To schedule your free legal consultation, give us a call today!

Chapter 7 Bankruptcy: What to Know and What to Do When You File

cropped view of woman with Chapter 7 bankruptcy papers near calculator on wooden background

Chapter 7 bankruptcy, also known as straight bankruptcy or liquidation bankruptcy, is a legal process designed to help individuals wipe out their unsecured debts and get a fresh start with their finances. A liquidation plan is created, the individual’s nonexempt property gets sold, and the proceeds are used to service existing debts. A judge then orders all remaining debts to be discharged. 

Although it’s the most common type of bankruptcy in the U.S., declaring Chapter 7 bankruptcy is no minor decision. But it just may be the right one for you, especially if you cannot see any way of paying off your debt in the next five years. Bankruptcy is a powerful tool in the event that your debt burden becomes unmanageable, and if you commit to rebuilding your credit afterward, it can be one of the best financial decisions you’ll ever make.

But you don’t have to make the decision alone. Gather as much information as you can, then consult an experienced bankruptcy attorney, like ours at OlsenDaines, so you can be sure you understand all of the ramifications of your decision.

There are many missteps you should plan to avoid in the months and weeks leading up to filing. For starters – before you can file for bankruptcy you must complete mandatory pre-bankruptcy credit counseling and receive a certificate. 

What to Expect in Pre-Bankruptcy Credit Counseling

The purpose of pre-bankruptcy credit counseling is to provide an impartial look at whether or not a debtor really needs to file for bankruptcy. The most important thing to remember is that you must complete the counseling before you file for bankruptcy. Upon completion, you will receive a certificate that is valid for 180 days. If you decide to file for bankruptcy, you will need to file that certificate with the court.

Pre-bankruptcy credit counseling may be the most painless part of bankruptcy. It can be done in person, by phone, or online, and it usually takes no more than a couple of hours.

Once you have completed the counseling and have your certificate, you must file it with the court along with your other bankruptcy forms. Credit counseling is mandatory. If you do not file a certificate of credit counseling with the court, the bankruptcy court will dismiss your case.

For your counseling session, you will want to bring (or have available) information about your debts and your income. The counselor will discuss your financial situation with you and will talk to you about what non-bankruptcy options you may have. Counseling will most likely include:

  • A thorough review of your personal finances
  • A discussion of alternatives to bankruptcy
  • Personal budget plan.

Overall, this counseling will help you to understand how bankruptcy works and what you can do to avoid financial risk in the future.

Should I Stop Paying Creditors If I’m Going to File for Bankruptcy?

The short answer is, no you shouldn’t stop paying creditors until you’ve officially filed. When you file for bankruptcy, the court will order an automatic stay which will prohibit lenders from making harassing collection calls, sending threatening letters, and trying to file lawsuits against you. But until then, they can continue to harass you so don’t be surprised if you suddenly stop making payments.

In most cases, the automatic stay remains in effect until your bankruptcy case is concluded. Keep in mind that it won’t stop every debt collector. Automatic stay orders will not halt child support, loans against your pension, or back taxes. And if you filed for bankruptcy in the previous year, the order will expire after 30 days.

  • Auto Loans: If you stop making payments on your auto loan, the creditor will eventually attempt to repossess your vehicle. If you want to keep the vehicle, you may want to continue making payments so you don’t run the risk of having it repossessed.
  • Credit Cards: In most cases, people are fine not making their credit card payments, but you will likely be subjected to collection calls until you file for bankruptcy. If you just used a card before you realized you were going to file, you may want to continue to make payments. We recommend consulting with a bankruptcy attorney.
  • Home Loans: As with auto loans, if you stop making your mortgage payments, at some point the creditor will attempt to foreclose the home. If you want to keep it, you may want to continue making your monthly payments. Every case is different.

If you’ve taken out loans through your bank or credit union and you’ve stopped making payments, they can institute a setoff. This allows them to withdraw money from one of your accounts to another to cover the loan payment. You may want to move your money around before missing a debt payment.

How Much Does a Bankruptcy Affect Your Credit Score?

As one of the single largest events that can affect your credit score, bankruptcy can drop it by hundreds of points. If your credit score is considered ‘good,’ you will be penalized more heavily than if it is ‘average’ or worse.

So if you have solid credit (700+), your credit score will drop by about 200 points. But if you have below-average to average credit, your score won’t drop as much. 

The good news is that the effect is not permanent. In fact, you can start rebuilding credit immediately after bankruptcy is filed. The process takes some time, but financial institutions offer products like secured credit cards and credit-builder loans that can help. Just be sure to make your payments regularly and on time and practice smart spending habits. Financial institutions will look favorably on your efforts to rebuild credit after bankruptcy, even if you have it on your record.

What Factors Affect Your Credit Score?

Credit card payments, mortgage payments, and rent payments are three types of debt that will have the largest impact on your credit score. 

The rules around another common type of debt (medical debt) are currently changing as of June 2024, thanks to pressure from the Consumer Financial Protection Bureau (CFPB) and the American Rescue Plan (ARP). Those who are forced to take on medical debt usually have no idea how much their treatments will end up costing. 

Do You Still Owe Taxes if You File for Bankruptcy?

Yes, you must pay your taxes (and file extensions if needed) during the bankruptcy process. Filing for bankruptcy is one of the most effective ways to eliminate debt, save your home, and rebuild your financial security. It can also help you sleep easier at night knowing that you won’t have to worry about repossession or mounting bills. 

How Do Taxes Work After Bankruptcy?

Many people overlook their tax situation when filing for bankruptcy, but it’s crucial to know what to expect before moving forward with your case. Your tax requirements will look different depending on which type of bankruptcy you are filing for. 

Chapter 7 bankruptcy is meant to help those with lower income and fewer assets, and individuals must pass a “means test” in order to qualify. If granted Chapter 7 bankruptcy, individuals will be assigned a trustee who will be responsible for reviewing their petition and seizing any nonexempt assets that can be sold to benefit their creditors.

If you are unable to pay your taxes and accrue new debt, it can negatively impact your case and may even result in your case being dismissed. However, if you are expecting a tax refund but are granted Chapter 7 bankruptcy, then you may need to turn the funds over to your trustee, who will use them to pay your creditors.

Can Bankruptcy Discharge Tax Debt?

Tax debt generally cannot be discharged even if you are granted bankruptcy. Tax debt is considered “unsecured debt.” That said, if your tax debt meets a few specific criteria, you may be able to discharge it when filing for Chapter 7 bankruptcy. Your debt may be considered for discharge if it meets these requirements:

  • The tax return filing was due three or more years ago.
  • The tax return filing was two or more years ago.
  • The tax assessment is at least 240 days old.
  • The tax return was not fraudulent.
  • The taxpayer did not attempt tax evasion.

What is Bankruptcy Exemption Planning?

Bankruptcy exemption planning is the process of making deliberate choices concerning a debtor’s property before filing bankruptcy, to maximize the exemption protections provided by the bankruptcy law. So one primary way that bankruptcy law attains its goal of providing debtors with a “fresh start” is by providing debtors with certain “exemptions” that protect their property from creditors and put it beyond the reach of the bankruptcy trustee. 

Warning: bankruptcy exemption planning can be dangerous. Most people who file for bankruptcy do not lose anything they own because they often file a Chapter 7 bankruptcy and everything they own is “exempt.” 

Section 727(a)(2) of the Bankruptcy Code prohibits any debtor who attempts to defraud creditors by transfers of property, from being discharged. So there is tension in the law with regard to how much you are allowed to sell or transfer before filing for bankruptcy. 

To properly engage in exemption planning, you will need the advice of an experienced and highly competent bankruptcy attorney to guide you as to the safest way to engage in asset protection and other strategies, and to inform you on which strategies are likely to be safe.

Bankruptcy in the Context of Divorce

Many divorced couples say that conflict over finances caused their marriage to fall apart. Fights over money ruin relationships. That’s why we so often see divorce occur when there is a bankruptcy. It’s because of this that it is critical to understand the intersection of bankruptcy and divorce laws.

What comes first – divorce or bankruptcy? There’s no simple answer. If you are facing divorce and bankruptcy, the first thing you need to consider is timing. You must decide whether to file for divorce first or for bankruptcy first. (Filing the two together causes significantly more problems.) How you answer that question depends on a number of things: 

  • Your income
  • Your spouse’s income
  • What assets you possess
  • Costs of divorce and bankruptcy
  • What type of bankruptcy you are filing for or qualify for

What Type of Bankruptcy to File in Divorce

An important factor to consider is the type of bankruptcy that you should file for. A Chapter 7 bankruptcy requires that you meet the income requirements of the “means test.” If your income compared to certain expenses is too high, you will be required to file for Chapter 13 (“reorganization”) bankruptcy instead.

If your earnings are significantly different from your spouse’s, it might make more sense to file for divorce before you file for bankruptcy. On the other hand, if you earn significantly less than your spouse and you file for bankruptcy individually after the divorce is final, you may have a better chance of qualifying for Chapter 7 bankruptcy.

Although the intersection of bankruptcy and divorce may be common, it is not simple to navigate. But the good news is that you do not need to try to figure all this out on your own. OlsenDaines is here to help.

Before you can make a final decision, you must consider the facts of your situation, the divorce laws, and the bankruptcy laws. That’s why you should sit down with an experienced bankruptcy attorney to discuss your situation and what is best for you. 

Is Bankruptcy Right For You? Let OlsenDaines Help You Decide

To achieve your financial goals, it’s best to work with an experienced bankruptcy attorney. OlsenDaines has vast experience with bankruptcy. In fact, we’re the top bankruptcy filer in Oregon & Washington. 

Filing for bankruptcy can be overwhelming, but you don’t have to navigate it all alone. The experienced bankruptcy attorneys at OlsenDaines are prepared to help get you through the process as quickly and easily as possible while answering all of your questions. 

We have proudly served Oregon & Washington residents for over 46 years and are ready to use our expertise to help you relieve your debt. To get started, schedule your free, no-obligation legal consultation with one of our attorneys today!

How Bankruptcy Can Help You Build a Better Financial Future

How Bankruptcy Can Help You Build a Better Financial Future in the Vancouver-Portland Metro area | OlsenDaines

Bankruptcy has long been viewed as the ultimate financial failure, and many people believe that it’s a one-way ticket to a bleak financial future. However, this couldn’t be further from the truth. Bankruptcy provides a fresh start, a chance to eliminate debt, and even an opportunity to rebuild your finances. 

In this blog post, we’ll share the inspiring story of Chris, a client who was able to buy a commercial property just a few years after filing for bankruptcy. We hope his story will help you understand how bankruptcy can be a stepping stone towards a brighter financial future.

Chris’s Bankruptcy Story

They were in dire straits when Chris and his wife first came into our office. They were behind on their mortgage payments and lived off credit cards. They believed that filing for bankruptcy would mean the end of their financial life, but we quickly dispelled that myth. We helped them file for Chapter 13 bankruptcy, which allowed them to eliminate their second mortgage, gave them time to catch up on their first mortgage, and wiped away their general debt. This process allowed them to restructure their finances and start fresh.

The Chapter 13 bankruptcy process requires a lot of documentation, but it’s ultimately worth it. Once the process was completed, Chris could start rebuilding his finances. A few years after their bankruptcy was finalized, Chris contacted us with some exciting news: he wanted to buy a commercial building. This was a surprisingly short time frame for someone who had filed for bankruptcy, but it was a testament to how the process had given Chris a fresh start.

Bankruptcy Is a Fresh Start

Chris needed copies of all the documents from our firm to purchase the property, and that’s when he reached out to us. Now, every week when we drive past that building, we feel great satisfaction knowing that we helped Chris get his financial house in order and buy an investment property. It proves bankruptcy doesn’t have to be a one-way ticket to financial doom.

Bankruptcy can be daunting, and it’s not a decision that should be made lightly. However, if you’re struggling with debt, it’s important to remember that it can be a tool to help you rebuild your finances. Filing for bankruptcy can be the first step towards a better financial future. It allows you to eliminate your debts, restructure your finances, and start anew. Chris’s story proves bankruptcy doesn’t mean the end of your financial life – it can be the beginning of a brighter future.

Contact Experienced Bankruptcy Attorneys for Help

If you’re interested in filing for Chapter 13 Bankruptcy, contact OlsenDaines. We have offices located throughout Oregon and Washington with experienced bankruptcy attorneys ready and willing to help you relieve your debt. To schedule your free, no-obligation consultation with one of our attorneys, simply call us or fill out our online form!

Protecting Your Retirement Accounts in Bankruptcy

Protecting Your Retirement Accounts in Bankruptcy in the Vancouver-Portland Metro area | OlsenDaines

Bankruptcy is often associated with losing everything, including your hard-earned retirement savings. But contrary to popular belief, filing for bankruptcy doesn’t necessarily mean that you have to surrender all your retirement accounts. There are ways of protecting your retirement accounts from creditors during bankruptcy. In this blog post, we’ll discuss different types of retirement accounts, what counts as a qualified account, and how you can safeguard your retirement savings.

The Two Types of Retirement Accounts

When it comes to retirement accounts, there are two types: qualified and non-qualified. Non-qualified accounts are regular investment accounts that you use to save for retirement. These accounts are not protected during bankruptcy, so creditors may seize your investments if you file for bankruptcy. On the other hand, qualified accounts are tax-advantaged retirement accounts that the IRS recognizes and approves. These accounts are usually exempt from bankruptcy proceedings, meaning your creditors can’t touch them.

What You Need to Know About Qualified Accounts

The most common types of qualified accounts are 401(k)s and IRAs. A 401(k) is a retirement savings account offered by an employer, while an IRA is an individual retirement account. These accounts are tax-deferred, meaning you won’t have to pay taxes until you withdraw the money in retirement. If you file for bankruptcy, you can protect your 401(k) and IRA from creditors as long as you follow specific rules and regulations.

One of the most important things you need to do to protect your retirement accounts in bankruptcy is to provide accurate and complete information about your retirement plans. Your bankruptcy attorney will review your account statements and determine whether they qualify as protected retirement accounts. If you have a mix of qualified and non-qualified retirement accounts, your attorney may advise you to transfer your assets to your qualified accounts to shield them from creditors.

How Bankruptcy Exemptions Can Protect Your Assets

Another way of protecting your retirement savings during bankruptcy is to use exemptions. In some cases, state or federal laws may allow you to exempt certain assets from bankruptcy proceedings, including retirement accounts. However, the specific amount of exemption you can claim will depend on the type of retirement account, its balance, and the laws of your state.

It’s also worth noting that filing for bankruptcy may impact your retirement plans. For instance, if you have a 401(k) loan when you file for bankruptcy, you may be required to repay the loan in full or risk losing your 401(k) savings. Similarly, if you have already started receiving retirement benefits, such as Social Security or pension payments, you may not be able to discharge them in bankruptcy.

Your Attorney Can Help Protect Your Accounts

Recently, I had a conversation with a client who had two different types of accounts – a nonqualified account and an IRA, which is a qualified account. After filing for bankruptcy, our next step was to meet with the trustee to verify the types of accounts the client had. Unfortunately, there was some confusion, and the trustee initially believed that both accounts were non-qualified. This could’ve resulted in the client surrendering some of her accounts. Fortunately, we had the proper documentation in place, and we could demonstrate that the money in her IRA was totally protected and exempt from any creditors. For the client, it was a relief to know that her assets were protected and that we had done the work beforehand to ensure that her documentation was in order.

Filing for bankruptcy can be a stressful and daunting experience, especially when you need clarification on what will happen to your retirement savings. However, with the right legal guidance and strategies, you can protect your retirement accounts during bankruptcy and ensure that you have a secure financial future. Remember, if you’re considering filing for bankruptcy, it’s crucial to work with an experienced bankruptcy attorney who understands the intricacies of bankruptcy law and can help you make informed decisions. Don’t let bankruptcy erode your retirement plans – take steps to safeguard your future today!

Contact OlsenDaines for Bankruptcy Help Today

From our free bankruptcy consultations to our complimentary credit rebuilding program, bankruptcy attorneys at OlsenDaines are here to help you with every step of the bankruptcy process. We are the largest and most experienced consumer bankruptcy law firm in the Pacific NW. We are able to address your financial difficulties with the expertise and careful planning you are seeking. Contact us today!

How Chapter Seven Bankruptcy Can Provide Financial Relief During Medical Crisis

How Chapter Seven Bankruptcy Can Provide Financial Relief During Medical Crisis in the Vancouver-Portland Metro area | OlsenDaines

When dealing with a medical crisis, the last thing you want to worry about is the financial burden that comes with it. Unfortunately, medical bills can stack up quickly, and it is not uncommon for individuals to find themselves drowning in debt. This was the case for my client Susie. She felt overwhelmed, and her creditors were hounding her relentlessly, leading her to a dark place where she even attempted suicide. In this blog post, I will share how Susie found hope and relief through Chapter Seven bankruptcy and how it could help you, too.

What Is Chapter 7 Bankruptcy?

Chapter Seven bankruptcy is a legal process designed to help individuals and businesses eliminate unsecured debts, such as medical bills, credit card debt, and utility bills. This type of bankruptcy allows filers to discharge their debts, leaving them with a clean slate. This process may seem daunting, but an experienced bankruptcy attorney can guide you through it and ensure that your assets are protected.

For Susie, Chapter Seven bankruptcy was the answer to her prayers. She had accumulated medical bills that were putting a lot of pressure on her, and her creditors’ relentless calls only worsened her depression. As soon as we filed her case, the harassing phone calls stopped, and she felt a weight lifted off her shoulders. With her debts discharged, she could focus on her mental and physical health and rebuild her life.

Medical Debt in Bankruptcy

It is crucial to note that not all medical debt will qualify for discharge in Chapter Seven bankruptcy. However, it is still worth discussing your options with a bankruptcy attorney because alternative solutions are available, such as Chapter 13 bankruptcy or debt settlement. An experienced attorney will assess your situation and determine the best course of action based on your circumstances.

Bankruptcy Provides a Fresh Start

It is understandable if you feel hesitant or embarrassed to file for bankruptcy. The truth is that bankruptcy was designed to provide a fresh start to individuals or businesses struggling financially. It is not something to be ashamed of, and you are not alone. Many people have turned to bankruptcy to get a second chance. Susie herself admitted that she felt relieved and grateful for the help she received, and it even saved her life.

Medical crises can be overwhelming, and the financial burden that comes with them only adds to the stress. The good news is there are solutions to help you get back on track. Chapter Seven bankruptcy is just one of the options available that can eliminate your debts and give you a fresh start. If you are in a situation like Susie’s, help is available, and it doesn’t cost anything to call and discuss your options. Don’t suffer in silence. Take that first step towards finding financial freedom.

Contact Experienced Bankruptcy Attorneys for the Help You Need

The bankruptcy attorneys at OlsenDaines are here to help you with every step of the bankruptcy process. We are the largest and most experienced consumer bankruptcy law firm in the Pacific NW, with offices throughout Oregon and Washington. We can address your financial difficulties with the expertise and careful planning you are seeking. Contact us to schedule your free case evaluation today!

How Bankruptcy Can Affect Your Family Business

How Bankruptcy Can Affect Your Family Business in the Vancouver-Portland Metro area | OlsenDaines

Are you considering bankruptcy but wondering how it might affect your family business? If so, you’re not alone. Many small business owners find themselves in a position where they need to file for bankruptcy but are worried about the impact it will have on their company. In this blog post, we’ll explore how filing for bankruptcy can affect your family business and provide helpful information to ease your worries.

Membership or Shares in the Family Business

When you file for bankruptcy, the first thing that is considered is your assets. It’s important to note that your LLC or corporation must only file for bankruptcy if it’s also experiencing financial difficulties. However, the value of your membership or shares in the corporation will be considered. The bankruptcy law protects your assets, so there are limits to what can be taken or seized by creditors. This is where your membership or shares in the family business come into play.

Value of Your Membership or Shares

If the membership or shares do not have enough value to a trustee, they will not be at risk of bankruptcy. That said, it’s important to have a professional look closely at the value of your ownership interest in the LLC or Corporation, as this is what the trustee will assess. In many cases, your membership or shares may not be worth enough to be at risk of bankruptcy. In assessing the value of your ownership interest in the LLC or corporation, you should contact a professional with experience in bankruptcy law. They can help you determine whether your family business is at risk and guide you on the right path forward. They’ll discuss the valuation of your membership or shares and whether you need to take action to protect them.

Bankruptcy Often Does Not Impact Your Ownership Interest

In most cases, you can file for bankruptcy without impacting your ownership interest in the family business. For example, in a recent client’s case, we found that his portion of the family LLC wasn’t worth enough to be at risk of bankruptcy. He could file for Chapter 7 bankruptcy to eliminate his credit card, medical, and vehicle repo debts while keeping his ownership interest in the family LLC. In this way, bankruptcy could give Kyle the fresh start he needed while preserving his ownership status.

If you’re considering filing for bankruptcy and worried about how it might impact your family business, there’s no need to fret. While your membership or shares in the LLC or Corporation will be taken into account, they may not be at risk. By working with a professional experienced in bankruptcy law, you can determine the value of your interest and whether it will be impacted. In most cases, you can file for bankruptcy and keep your family business intact. So, don’t let the fear of default keep you from getting a fresh financial start. Consult with a professional and get the help you need.

Contact the Bankruptcy Attorneys at OlsenDaines Today

From our free bankruptcy consultations to our complimentary credit rebuilding program, bankruptcy attorneys at OlsenDaines are here to help you with every step of the bankruptcy process. We are the largest and most experienced consumer bankruptcy law firm in the Pacific NW, with convenient offices throughout Oregon and Washington. We can address your financial difficulties with the expertise and careful planning you are seeking. Contact us today to schedule your free bankruptcy consultation.