Explaining the New Bankruptcy Discharge Process for Student Loan Borrowers

Person adding up student loan debt on calculator

Over 42.8 million Americans have student loans, making it one of the most common forms of debt in the United States. While the amount of student loan debt has increased in recent years, it remains one of the most challenging types of debt to discharge through bankruptcy. However, the Department of Education recently reformed its policies to make the discharge process easier and more accessible to student loan borrowers. In this guide, we’ll explain everything you need to know about the new bankruptcy discharge process for student loans. 

Adversary Proceedings and “Undue Hardship”

In order to be considered for student loan discharge, individuals must initiate a separate lawsuit within their bankruptcy case called an “adversary proceeding”. During this process, the debtor is essentially suing the student loan lender. To do so, however, the debtor must demonstrate that he or she is experiencing “undue hardship” as a result of the loans.

Prior to these policy changes “undue hardship” was an undefined term in the bankruptcy code, which made it challenging for courts to judge each case by universal standards – leaving a lot of room for interpretation. 

In the past, most courts used something called the “Brunner Test” to determine who qualified for student loan discharge. This test was originally created in a 1987 court case during which a woman attempted to discharge her student loans less than a year after earning her degree. The goal of the test was to deter individuals from rushing into bankruptcy immediately after graduating, and it includes three questions:

  • Have you made a good-faith effort to repay the loans?
  • Are you unable to maintain a minimal standard of living while making the payments?
  • Is your financial situation likely to persist?

If the answer to each of these questions is “yes” and is supported by extensive evidence, then the loans can be discharged. 

On the surface, this may seem like a great system for discharging student debt. However, adversary proceedings are lengthy and costly, and they often weren’t successful because the requirements to pass the Brunner Test were still highly variable. Over time the test became increasingly difficult to pass, and many legal experts think it is now close to impossible to have loans discharged through this method.

How New Policy Changes Make Student Loan Discharge More Accessible

Debtors are still required to initiate an adversary proceeding within their bankruptcy case in order to be considered for student loan discharge.  The recent policy changes will ease the process by:

  • Setting clear standards for what is considered “undue hardship”: The current process uses arbitrary methods to review evidence and determine whether the debtor is experiencing undue hardship. According to the Department of Justice’s recent press release, the new process will include a thorough review of the debtor’s financial situation against concrete standards. These standards will be based on data provided by the Department of Education, along with other information that could contribute to undue hardship. This will ensure each debtor is judged fairly, without room for subjectivity.
  • Allowing for partial discharge if appropriate: Historically, student loans were either completely discharged or left entirely intact. The new policy changes allow for partial discharges depending on the debtor’s financial situation, which will make relief more accessible to those who are struggling with student loans. 

Considering Bankruptcy?

If you are overwhelmed with debt and need relief, don’t hesitate to contact the knowledgeable bankruptcy attorneys at OlsenDaines. Whether you’re dealing with significant student loans or other types of debt, we can assess your situation and help you determine the best course of action to regain financial stability. With over 40 years of experience serving individuals and businesses throughout the state of Oregon, we know how to help you with everything from foreclosures to creditor harassment. Whatever you’re facing, we can help. Just give us a call today to schedule your free legal consultation.

How Does Bankruptcy Impact My Credit Score?

A woman sitting a desk looks into the distance deep in thought

No one sets out with the goal of one day declaring bankruptcy. Everyone wants to be financially stable and independent, but unexpected challenges can arise and result in large amounts of debt. If you find yourself in that situation and you’re considering bankruptcy, you probably have many questions about the possible effects. One of the most common is, “how does bankruptcy affect my credit score?” Keep reading to find out.

What is a Credit Score?

Let’s begin with the basics. A credit score, or FICO® score, is a number between 300 and 850 that attempts to reflect the significant financial decisions you’ve made. Your credit score drops, for example, when you default or make a late payment on a debt. Whereas an established pattern of making payments on time will increase it. Three companies – Equifax, Experian, and TransUnion – track and assign your credit score, and it can have a significant impact on your ability to do everything from borrowing money to getting a job.

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, thanks to pressure from the Consumer Financial Protection Bureau. 

There has long been debate about whether or not medical debt should affect credit scores. This is because few people actually choose to take on medical debt, and those that are forced to usually have no idea how much their treatments will end up costing. If this has previously caused issues on your credit report, read up on how the overhauled rules on medical debt might affect you.

Can Bankruptcy Permanently Ruin Your Credit?

Bankruptcy is one of the single largest events that can affect your credit score, and the immediate impact of bankruptcy is substantial. A person with previously solid credit (700+) will see their credit score drop by about 200 points. A below-average to average credit score won’t drop as much. That’s one important factor to keep in mind. If your credit score is good, you will be penalized more heavily than if your credit score is average or worse.

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 even if you have a bankruptcy on your record.

The effects of bankruptcy can be different, depending on the type of bankruptcy. These are the three most common types of bankruptcy for individuals in the US.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as “liquidation,” is the most common type of bankruptcy in the United States. 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. Chapter 7 Bankruptcy can affect your credit score for up to ten years.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is mostly filed by businesses because under federal law, this is the only bankruptcy option allowed for LLCs, corporations and partnerships. While individuals may file for Chatper 11 bankruptcy as well, it’s less common because Chapter 11 is typically more costly, complex and risky than filing for Chapter 7 or 13. Chapter 11 Bankruptcy can also affect your credit score for up to ten years.

Chapter 13 Bankruptcy

Also called “reorganization,” Chapter 13 bankruptcy allows individuals to repay creditors over a period of three to five years. The benefit is additional time to pay off debts and the chance to renegotiate settlements which typically means the individual has to pay far less than the original debt. Chapter 13 Bankruptcy can affect your credit score for up to seven years.

Is Bankruptcy Right For You?

Imagine Person A and Person B both have $30,000 in debt and are considering bankruptcy. 

The difference is that Person A has a credit score of 750 whereas Person B has a credit score of 550. Both will have $30,000 debt discharged if they declare Chapter 7 Bankruptcy, but the cost for Person A is significantly higher than for Person B. 

That’s because Person A will lose about 200 points to their credit score; Person B will only lose about 100 points. Person A’s new credit score will be ~550; Person B’s new score will be ~450.

Obviously, it’s more worth it for Person B to declare bankruptcy, but it might also be worth it for Person A too. It’s up to you to assess your circumstances and decide if bankruptcy is the tool that will best position you to move forward financially. 

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

There’s no shame in declaring bankruptcy, and it’s not the end of the world for your personal finances. It’s a powerful tool you have at your disposal 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.

How Much Do Bankruptcy Lawyers Charge?

Bankruptcy attorney discussing a case with clients in office

If debt has become an insurmountable problem for you, then filing for bankruptcy may be the best way to get back on your feet. However, the idea of spending money on an attorney may not sound very appealing if you’re already struggling financially. Knowing your options will help you make an informed decision so you can determine the best course of action for your situation. To help you get started, here’s a breakdown of how much bankruptcy lawyers charge and what you can expect when working with one.

How Much Do Bankruptcy Lawyers Cost?

While all experienced attorneys are expensive, a bankruptcy lawyer will likely be the least expensive attorney you will ever hire. Chapter 7 attorney fees typically run between $1,000 and $2,000. Meanwhile, Chapter 13 fees generally range from $3,000 to $6,000.

If you aren’t sure which type of bankruptcy you should choose, our skilled attorneys are here to help! With 40 years of experience helping individuals and businesses throughout the state of Oregon, we know the ins and outs of bankruptcy laws and can seamlessly guide you through the process.

Can I File Bankruptcy Without a Lawyer?

Though bankruptcy lawyers are less expensive than other attorneys, the fees can still feel overwhelming. For that reason, many people wonder if they even need the help of an attorney.

While it is possible to file for bankruptcy without a lawyer, doing so could become complicated and expensive. Filing for bankruptcy is an intensive process that can easily become overwhelming, and mistakes along the way could cost you. An experienced debt relief attorney will relieve stress by making the process simple, all while ensuring you get the best outcomes possible.

Will I Have to Pay a Bankruptcy Lawyer Up Front?

Depending on which chapter of bankruptcy you are filing for, you may not need to pay all of your attorney fees up front. While Chapter 7 typically requires you to pay your fees in full before filing, Chapter 13 often allows you to pay in installments as a part of your repayment plan.

Don’t let fees hold you back from getting the help you need. At OlsenDaines, we offer free legal consultations where we can examine your situation and discuss payment options before charging you anything. Our firm has also made a commitment to value-based pricing so we can remain as affordable as possible; in most cases, we can be retained for as little as just $200.

How Can I Pay for a Bankruptcy Lawyer?

Many people wonder how they are supposed to afford a bankruptcy lawyer if they are already struggling to pay creditors. If you’re struggling to come up with the money for attorney fees, don’t panic – there may be some options available.

Since everybody’s situation is different, we strongly recommend starting with a free legal consultation. At OlsenDaines, one of our experienced attorneys will examine your case and discuss how we can help you afford our services.

Affordable Bankruptcy Attorneys in Oregon

The attorneys here at OlsenDaines decided to become bankruptcy lawyers for a very particular reason; we sincerely want to help our neighbors get back on track financially. It is gratifying to help our community thrive, which is why we strive to keep our services as affordable as possible by offering free consultations and value-based pricing. If you are looking for experienced and affordable bankruptcy attorneys, we have you covered. Just contact us today to schedule your free initial case evaluation.

Do You Still Owe Taxes if You File for Bankruptcy?

Bankruptcy petition in Oregon - OlsenDaines Debt Relief Lawyers

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. However, if you’re considering bankruptcy, it’s important to know what it does and does not cover – and that includes taxes.

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. Here is a brief overview of how taxes work after filing for the two most common types of bankruptcy:

Chapter 7

This chapter of 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 that will be responsible for reviewing your petition and seizing any nonexempt assets that can be sold to benefit your creditors.

Taxes are still a requirement even if you are granted chapter 7 bankruptcy. If you are unable to pay your taxes and accrue new debt, it can have a negative impact on 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.

Chapter 13

This chapter of bankruptcy is meant to help those with higher income and more assets, and it is often considered a “reorganization” of debt. Individuals who are granted chapter 13 bankruptcy will need to establish a monthly payment plan with their creditors to repay a portion of their debts.

Taxes are also still required if you are granted chapter 13 bankruptcy. If you owe more than you can pay, you may be able to set up a payment plan with the IRS lasting between three and five years. Meanwhile, if you receive tax refunds while in Chapter 13 you’ll usually be able to keep these refunds for your own benefit.

Can Bankruptcy Discharge Tax Debt?

Tax debt is considered “unsecured debt”, which means that it generally cannot be discharged even if you are granted bankruptcy. 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.

Your Local Bankruptcy Attorneys

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 and Washington residents for over 40 years, and we are ready to use our expertise to help you relieve your debt. To get started, schedule your free and no-obligation legal consultation with one of our attorneys today!

Bankruptcy and HOA: What You Need to Know

What you need to know about filing for bankruptcy with an HOA - OlsenDaines bankruptcy attorneys in Oregon

If you live on a property with a homeowner’s association and are overwhelmed with late dues or fees, then you may be wondering if bankruptcy is a viable way to eliminate these debts. While this may seem like a straightforward question, there are several factors that can impact whether or not your HOA debts can be discharged through bankruptcy. To help give you an idea of what your situation might look like, the experts at OlsenDaines have put together a guide on what you need to know about bankruptcy and HOA.

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 are you 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 you 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.

Can an HOA Foreclose on My Property After Bankruptcy?

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

  • 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.
  • 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.
  • 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.

Your Local 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 40 years of experience serving people throughout Oregon, 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!

Does Debt Disappear After Bankruptcy?

Does debt disappear after filing for bankruptcy? Debt relief attorneys at OlsenDaines in Oregon State

If you’ve found yourself battling against a mountain of debt, you may be considering bankruptcy as a way to get back on your feet. After all, filing for bankruptcy can be an effective method for relieving debt and regaining control over your finances. But, should you file for bankruptcy, will all of your debt disappear?

The answer to that question is a little complicated. Though bankruptcy can help relieve many different kinds of debt, there are some kinds that will stick with you. If you are considering filing for bankruptcy, it’s important for you to know what kinds of debts are covered and which kinds are not.

What Debts Can Be Forgiven by Bankruptcy?

Bankruptcy can help you regain financial stability by relieving a wide variety of debts. Your exact amount of relief, however, will largely depend on your specific situation and what kind of bankruptcy you qualify for. If you aren’t sure which path would be best for you, a bankruptcy attorney can help you find a solution that relieves as much debt as possible.

Chapter 7

Chapter 7 bankruptcy is intended for individuals with a lower income and fewer nonessential assets. To qualify for this type, you have to pass a means test, which verifies your income. The types of debt that this chapter can cover include:

  • Medical bills
  • Overdue utility charges
  • Outstanding credit cards
  • Collection agency accounts
  • Lease agreement deficiencies
  • Checks written on insufficient funds

Chapter 13

Chapter 13 bankruptcy is intended for individuals with more disposable income and more nonessential assets. This type of bankruptcy is considered “reorganization”, where you will create a payment plan to repay secured debts – such as alimony, child support, and mortgage delinquencies.

Depending on your specific situation, other types of debt may be reduced, but that is not always the case. Chapter 13 bankruptcy can be tricky to navigate, so it is best to contact a skilled bankruptcy attorney to determine the best approach for debt relief.

What Debts Cannot Be Forgiven by Bankruptcy?

Though bankruptcy can absolve many kinds of debt, there are a few types that usually cannot be discharged. The types of debt that bankruptcy generally cannot cover are:

  • Student loans
  • Alimony and child support
  • Tax debts

While these debts are generally not forgiven through bankruptcy, each person’s situation is different. A knowledgeable and experienced bankruptcy attorney can examine your unique circumstances to help you relieve as much debt as possible.

Experienced Debt Relief Attorneys

Bankruptcy can be difficult to navigate, and without the right guidance, you may miss
opportunities to relieve debt. If you are considering filing for bankruptcy, contact the skilled bankruptcy attorneys at OlsenDaines in Washington and Oregon today. Our experienced lawyers understand the ins and outs of bankruptcy law, and they can help you get the best outcome possible for your situation. We can help you through any step of the process so you can regain financial security as easily and effectively as possible. Call us today to schedule your free legal consultation.

How to Avoid Debt This Holiday Season

How to avoid debt this holiday season in Salem OR - OlsenDaines bankruptcy attorneys

The reality of holiday debt usually doesn’t sink in until you get the bills or check accounts. Too much unpaid debt can cause your credit score to drop so we are sharing some tips to follow to avoid racking up holiday debt.

Pay in Cash When Possible

Statistics show 57% of Americans with credit card debt are willing to accrue more debt during the holidays. Gifts and décor commonly cause the most holiday debt, and since consumers rarely save for this, they charge for it.

Avoid this added debt by setting a little money aside each month to pay for gifts and holiday décor in cash. Leave your credit card at home to reduce the temptation to make spontaneous purchases, and use debit cards. Several studies have shown consumers spend less with cash, and it comes with less security risk.

Create a Budget and Make Lists

Decide how much you are going to spend, including travel, and ensure it doesn’t prevent you from making necessary payments. Make a list of things you need, a list for gifts, stick by it, and cross them off as you go.

Consider having some gifts be homemade, such as mixes in a jar, which you can often make for less than buying. If you are easily influenced by others, go shopping alone to avoid going over budget.

Use Credit Wisely

If you must use a credit card, try to stay within less than 20% of the limit, and don’t max them out. Set a budget the same as you would for cash, but check the remaining balance on the cards.

Use credit cards that give rewards for purchases and apply points you have already accumulated to gifts. Don’t be tempted to take out cash advances on your credit cards, because they often have high-interest rates.

Experts in Bankruptcy Law

With some careful planning, you can avoid falling into the holiday debt trap and you will enjoy the holidays better without the stress of debt.

We hope you have a great holiday season and if you need debt relief, consider OlsenDaines. We have offices all throughout Oregon and Washington with highly experienced bankruptcy attorneys ready to help! Just give us a call today to schedule a consultation. 

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

Woman looking through bills. OlsenDaines, serving Oregon and Washington explains if you should stop paying creditors if you're going to file for bankruptcy.

If you’re choosing to file for bankruptcy, and you’re current on your debts, you may be asking yourself if you should stop paying creditors now.

Automatic Stay

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, 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 payment on your auto loan, at some point the creditor will 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 getting 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.

Bank Setoffs

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.

Experienced Bankruptcy Attorneys

Filing for bankruptcy can help you “start fresh” if you’re facing mounting debt and pressure from creditors. However, there are many missteps you should avoid in the months and weeks leading up to filing.

To ensure you reach 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. We’ll help you navigate the process and get your life back on track. To schedule your free initial consultation, contact us today!

Life After Bankruptcy

Woman sitting on her sofa in relief, relaxing. OlsenDaines in Oregon and Washington talks about life after bankruptcy.

Filing for bankruptcy can provide you with relief if you’ve struggled with unmanageable debt but it also comes with some new challenges, such as dealing with a low credit score. The bankruptcy attorneys at OlsenDaines want you to start off strong after filing for bankruptcy, so follow these tips as you prepare for life after bankruptcy.

Think Positive

First of all, don’t be ashamed after filing for bankruptcy. We understand there’s a stigma involved with bankruptcy, which is mostly just misconceptions. Think positive, get back up, and try again. Many people and businesses have overcome bankruptcy and you will too.

Start Saving

Sit down and calculate your income and expenses. This will help you determine how much disposable income you have. After you’ve determined that figure, make it a point not to spend more than that every month.

Cut Down on Expenses

If you filed for Chapter 13 bankruptcy, you’ll repay secured debts through a court-managed payment plan. This means you’ll have to change your lifestyle a bit and you cannot take on a new car loan or credit card without the court’s permission first.

Rebuild Your Credit

Now that you’re starting off with a clean slate, you’ll want to rebuild your credit. Keep in mind, this is especially hard the first year following a bankruptcy filing. Apply for a secured credit card. Unlike a typical credit card, secure credit cards require a cash deposit. Pay off the balance each month and over time you’ll improve your credit score. OlsenDaines will set you up on a credit rebuilding program after filing bankruptcy.

Bankruptcy Experts

Any bankruptcy is difficult. Whether you’ve just finished discharging your debts or are thinking about declaring bankruptcy, OlsenDaines can help. We’ve been helping people throughout Oregon and Washington for over 40 years. Visit our website for more about bankruptcy and schedule your free bankruptcy consultation today!

Signs You Should File Bankruptcy

Woman looking stressed about debt. OlsenDaines serving Oregon & Washington talks about the signs you should file for bankruptcy.

Bankruptcy is typically a taboo subject, but filing for bankruptcy has helped thousands of people get the financial freedom they need. It will help repair your credit score, allow you to be stress-free, and most importantly, it will allow you to get on with the rest of your life.

Let’s take a look at some signs you should file bankruptcy.

You’ve Tried Negotiating Already

If you’ve already tried negotiating with creditors and they haven’t budged and you don’t have the funds to make your payments, it may be best to file for bankruptcy.

You’re Facing Foreclosure

If you’re behind on your mortgage payments and your lender is now threatening to foreclose on your home, filing for bankruptcy can help. It will allow you to keep your home and catch up on your mortgage payments.

Your Liabilities Exceed Your Income

If your debt amount is more than the monthly amount you have coming in, you may want to consider filing for bankruptcy. Underemployment and unemployment are major reasons why many individuals file for bankruptcy.

You’re Being Sued

If your unpaid debts have led to creditors filing a lawsuit against you, it’s a good idea to file for bankruptcy. Creditor lawsuits are often the start of aggressive tactics to seize your assets.

You Don’t Have Any Savings or Retirement Funds

If you’ve already used all of your savings and retirement funds to repay your debts, filing for bankruptcy may be a good idea because it will free up some of your income so you can better prepare for your future. You should talk with us before using up all of your retirement as those accounts can be protected from your creditors.

Experienced Bankruptcy Attorneys

If you have more debt than you can repay and are weighing your options, filing for bankruptcy may be your best option but it shouldn’t be taken lightly. Before making a decision, you should consult with a reputable credit counselor like OlsenDaines. We have knowledgeable and experienced bankruptcy attorneys all throughout Oregon and Washington ready to help. We’ll give you candid, honest, and caring advice. So contact us today for your free debt relief consultation.