Can a Noncitizen File for Bankruptcy?

Before we address the question that serves as the title of this blog post, we should explain some of the basic reasons why bankruptcy could provide a solution if you are struggling financially. If you qualify for a Chapter 7 filing, your unsecured debt can be completely discharged. Unsecured debts include credit card balances, unpaid medical bills, and a number of other types of debts. When you rid yourself of these obligations, other debts that you may have, like your home mortgage or student loan, will be easier to pay.

People who cannot qualify for a Chapter 7 bankruptcy can choose a Chapter 13. This is a reorganization bankruptcy that allows you to pay back a portion of your debts over a three-year or five-year period. Once again, some unsecured debts may be discharged so that you can afford to pay your non-dischargeable debts through the repayment plan.

Now that we have set the stage, we can get to the point of this post. There are many people who reside in this country, but they are not citizens. Under federal laws, you can in fact file for bankruptcy if you maintain a domicile on American soil or have U.S.-based assets such as a home, a business, or any other property in the United States, even if you are not a citizen of this country. This is good news for noncitizens who are interested in bankruptcy to provide a fresh financial start.

Bankruptcy will typically not make it any more difficult to become a citizen, but in some cases, a bankruptcy filing could make it more difficult to obtain citizenship so if this is a concern to you, you should seek the advice of an experienced immigration lawyer before filing a bankruptcy.

Our firm will be glad to assist you if you would like to discuss a potential bankruptcy filing with us whether you are a citizen or a noncitizen who is living in the United States. We serve clients in Vancouver and Tri-Cities in Washington, and we have many locations throughout Oregon. To schedule a complimentary consultation, call us toll-free at 800-682-9568.

Can You Get a Mortgage After Bankruptcy?

Many people are under the assumption that you are essentially ruined after you file for bankruptcy for at least 7 to 10 years. In fact, this is a misconception. It is true that a Chapter 7 bankruptcy will remain on your credit report for 10 years, and a Chapter 13 will stay on the report for seven years. However, the existence of a bankruptcy on your credit report will not necessarily preclude you from obtaining credit, and this will include a home mortgage.

The exact period of time that you have to wait to be able to obtain a mortgage after bankruptcy depends on the type of loan. FHA loans are very popular because they are guaranteed by the government and the minimum down payment is small. You will typically have to wait three years after a Chapter 7 discharge to obtain this type of mortgage. With a Chapter 13, after you have kept your repayment plan current for 12 months, you could potentially qualify for an FHA home loan.

Many veterans can qualify for a VA mortgage. This type of home loan is similar to the FHA loan with regard to the government guarantee that eliminates the need for mortgage insurance, and qualified veterans can get a VA mortgage with nothing down. The minimum waiting period for eligibility after bankruptcy is two years.

For conventional loans, you can become eligible three years after the discharge in a Chapter 7. Many people can qualify for a conventional mortgage shortly after a Chapter 13 has been successfully completed.

Since the requirements for mortgage qualification changes frequently, you should contact an experienced mortgage broker to discuss recent changes to the timelines noted above.

We Are Here to Help!

If you are in Portland, Eugene, Coos Bay, Medford, or any other city in the state of Oregon we have a bankruptcy law office near you and we provide free initial case evaluations. To schedule an appointment send us a quick message through our contact page and we will be back in touch with you shortly.

Q & A Session With a Bankruptcy Attorney

 

As bankruptcy attorneys, we are asked many of the same questions by our clients. In this blog post, we will present a hypothetical example of a typical question and answer session with a bankruptcy lawyer so that you can come away with a basic foundation of useful information.

Will collection calls stop if I file for bankruptcy?

The answer to this question is a resounding yes. When you file for bankruptcy, you get an automatic stay. This prevents most creditors from making any attempts to collect debts while the bankruptcy process is unfolding. It goes into effect immediately. Additionally, if you have legal representation, collection agencies are not allowed to call you. They are required to contact only your attorney.

Does a bankruptcy filing prevent a foreclosure?

Yes, bankruptcy can prevent a foreclosure. If you are behind on your mortgage payments, you can pay back the arrearage over time through a repayment plan in a Chapter 13 filing. In Chapter 7, up to $50,000 in equity in your Oregon home is exempt, so you can maintain ownership of your home as long as you are current on your payments if you have less than $50,000 equity ($50,000 for a married couple, $40,000 for an individual).

What is the difference between Chapter 13 and Chapter 7?

We will provide a short answer here. Chapter 13 is a reorganization bankruptcy. You are allowed to keep your property, and your debts are reorganized so that you can make affordable payments over a three-year or five-year period. Many debts are eliminated in a chapter 13 just like a chapter 7. Chapter 7 is a liquidation bankruptcy. Nonexempt property (if there is any) will be liquidated by the bankruptcy trustee to pay back as much of your debt as possible. Unsecured debts like credit card bills, old utility balances, medical charges, and unpaid lease obligations would be discharged completely.

How long will a bankruptcy filing remain on my credit report?

It depends on the type of bankruptcy that you file. A Chapter 7 bankruptcy will remain on your credit report for 10 years, and a Chapter 13 will last for seven years. The time period starts the day we file the case with the bankruptcy court.

Take the First Step Toward a Fresh Financial Start!

Now that you know some of the basics, you may be ready to move forward and have a detailed discussion with a licensed bankruptcy attorney. We have offices in Tigard, Salem, Klamath Falls, Albany, Grants Pass, Bend and several other cities in Oregon, and we also have locations in Vancouver and Tri-Cities in Washington. If you would like to schedule a free consultation, give us a call at 800-682-9568.

Is Credit Card Debt Settlement Possible?

There are many different underlying reasons why people sometimes fall into unmanageable credit card debt: overspending, loss of income, unforeseen expenses. Before long, a person has exceeded their credit limit and the minimum payment is no longer just a drop in the bucket. Getting additional credit cards compounds the problem. In fairness, the credit card companies certainly set enticing traps on an ongoing basis as they continually dangle new credit offers.

Excessive credit card usage is certainly the root cause of some financial calamities, but many people fall into debt that they cannot handle through no fault of their own. Medical conditions that result in costly health care bills can lead to overwhelming credit card debt, and a period of unemployment can be another underlying cause.

If you do find yourself with credit card debt that you cannot pay, some credit card companies will work with you to one extent or another. The possible courses of action depend on the policies of the company, the amount of the debt, and the repayment time frame. If you are going to be late for the first time, but you will be able to make a payment a week or two after the due date, the company may be willing to change the payment date. When you are negotiating with your credit card settlement, you may ask them if they will be willing to reduce the interest rate or accept a lump-sum settlement of the debt.

Bankruptcy is also an option, and it can be a more attractive one when certain circumstances exist. With a Chapter 7 bankruptcy, your credit card debt can be completely discharged which can be a huge relief. If you would like to discuss the possibilities with our firm, we will be more than glad to assist you. We can discuss with you the pros and cons of settlement verses bankruptcy. We offer free, no obligation case evaluations to people in Portland, Eugene, Medford, and residents of most other metropolitan areas in the state of Oregon. To set up an appointment, send us a message through our case evaluation request page.

Are There Different Types of Bankruptcy?

If you sit down and discuss your options with an attorney, you may be surprised to hear that there are multiple different types of bankruptcies. An individual will probably be best served by a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.

With a Chapter 7 bankruptcy, an automatic stay is imposed, so all collection efforts will immediately come to a halt. You can maintain possession of your car and your home if you are up to date on your payments and you don’t have a lot of equity. Property that is not exempt must be turned over to a trustee so it can be liquidated. The proceeds will be used to pay the delinquent debts. However, most people who file for this type of bankruptcy have little or no non-exempt property to surrender.

Unsecured debt will be discharged, so you will no longer have to be concerned about collection calls from credit card companies or collection agencies. A Chapter 7 bankruptcy will stay on your credit report for 10 years; that’s the bad news. The good news is that you still may be able to obtain debt after you file if you need to, but you will typically be required to pay higher rates of interest.

Chapter 13 is a reorganization bankruptcy. If you have enough disposable income to make payments on your debts, you will not qualify for Chapter 7, but you can still file for Chapter 13. Under this form of bankruptcy, you will get the same automatic stay. You will be able to maintain possession of your property if you can keep your payments current, and a three to five-year debt repayment plan will be submitted to the court. This plan can include past due mortgage or car payments, so a Chapter 13 can help you avoid a foreclosure or repossession if you have fallen behind. A Chapter 7 does not allow for a repayment plan to correct mortgage arrearage over a period of years.

A Chapter 11 bankruptcy is a reorganization bankruptcy that is used by business entities, but some individuals with very high levels of debt may qualify for this type of bankruptcy. Chapter 12 is a special form of reorganization that is available to some family fishing businesses and family farmers.

We have provided a brief overview in this blog post, but we will be more than glad to answer all of your questions in detail. Our firm offers free consultations to clients in Portland, Medford, Grants Pass, Roseburg, and a number of other cities in Oregon and Washington. If you will like to set up an appointment, fill out the request form on this website and we will contact you ASAP.

A Look at Bankruptcy and Child Support

Many people paint with a broad brush when they think about bankruptcy. The assumption is that you get a fresh start and all of your debts are discharged when you file for bankruptcy. While this is generally true, the matter is much more complicated.

First of all, there are different forms of bankruptcy. Most individuals who are experiencing financial difficulties will file a Chapter 7 or a Chapter 13 bankruptcy. A Chapter 7 is a liquidation bankruptcy, and unsecured debt such as medical bills and credit card balances can be discharged if you file this type of bankruptcy. Plus, when you file for Chapter 7 or 13, you get an automatic stay as soon as you file. This prevents creditors from taking actions to collect on debts while the stay is in effect.

Child support falls under an entirely different category. The stay does not apply to ongoing child support. If you acquire property, including income, after you file, it will be outside of your bankruptcy estate. As a result, your earnings can be attached to satisfy your past due child support obligations. Of course, you will also be required to make your ongoing child support payments. Though your child support responsibilities will not go away if you file for Chapter 7, it may be easier to meet them, because other debts will be discharged.

A Chapter 13 is a reorganization bankruptcy. You maintain possession of your property when you file, and you agree to make manageable payments to your creditors. Your disposable income is used to make these payments and there is a priority to which creditors get paid first. Back child support has a high priority, so it will get paid before general creditors. The bankruptcy repayment plan will be designed to correct your child support arrears, and you will be required to continue to make timely payments as they become due.

Schedule a Free Case Evaluation

We have offices in many different cities throughout the state of Oregon, including Portland and Eugene, and we have locations in Vancouver and Tacoma, Washington. Our firm offers complementary consultations, and we will be more than glad to sit down with you to discuss your case. If you are ready to take action, we can be reached by phone toll-free at 1-800-682-9568.

Answers to Three FAQs about Bankruptcy in Oregon

We have been providing bankruptcy assistance in the state of Oregon for over 40 years, and we now have offices Portland, Eugene, Medford, Grants Pass, Coos Bay, Roseburg, Salem, Bend and a handful of additional cities. If you are considering the possibility of a bankruptcy filing in the state, you are going to have questions, and we can provide you with answers if you visit us in person. In the meantime, let’s look at the answers to three frequently asked questions about bankruptcy in Oregon so you can proceed with an underpinning of basic knowledge.

What are the different types of bankruptcy that are filed by individuals?

Chapter 7 and Chapter 13 are the forms of bankruptcy that are most commonly utilized. Chapter 11 is a type of bankruptcy that is used by businesses and a very limited percentage of individuals who have enormous levels of debt. Chapter 12 is a rarely used form of bankruptcy that is exclusively earmarked for family farmers and family fishermen.

How does a Chapter 7 differ from a Chapter 13 bankruptcy?

A Chapter 7 is a liquidation bankruptcy, so unsecured debts like medical bills and credit card balances are discharged. Plus, you can usually retain ownership of your car and your home if you are current on your payments. To be able to qualify for this type of bankruptcy, you have to be able to pass a means test. If your income is less than the median income in the state of your residence, you automatically qualify. It is possible to qualify even if your income does exceed the median if certain circumstances exist.

People who cannot qualify for Chapter 7 because they have too much income can file for a Chapter 13 reorganization. If you were to do this, you can keep all of your property, and your debt will be restructured. You will be required to use your disposable income to pay down the debt over a period of 3 to 5 years.

How long will a bankruptcy stay on my credit report?

It depends on the type of bankruptcy you file. Credit reporting agencies will erase a Chapter 13 bankruptcy after seven years. If you file for Chapter 7, the bankruptcy will remain on your credit report for 10 years.

Set Up a Free Bankruptcy Consultation

If you will like to take action after absorbing this basic information, we will be more than glad to assist you. We provide free initial case evaluations, so you can get to know us and learn more about the benefits of bankruptcy before you make any final decisions. To set the wheels in motion, send us a message through our contact page and we will get back in touch with you promptly.

How Will a Bankruptcy Filing Impact My Credit?

Clearly, a bankruptcy filing is going to have a significant impact on your credit, and the exact details will vary depending upon many different factors. When it comes to your FICO score, if your score was low prior to your bankruptcy filing, the reduction will be minimal. Some people end up with better credit scores immediately after the bankruptcy. If you had a good credit rating before your bankruptcy, the score is going to plummet significantly. While your credit score is definitely going to go down if you file, there can be a silver lining. If you do nothing, your credit score will continually cascade downward month after month. On the other hand, if you take the bull by the horns and file a bankruptcy, you can begin to rebuild your credit sooner rather than later.

Chapter 7 bankruptcy is a liquidation bankruptcy, and it will wipe out all of your unsecured credit card debt. Chapter 13 is a form of bankruptcy that is called a reorganization. You continue to pay your bills with your disposable income when you file for a Chapter 13, but the debts are restructured to be more manageable. Depending on how soon after filing a bankruptcy you need good credit, a chapter 7 and chapter 13 will have different result. The type of bankruptcy that you file for also has an impact on the length of time that it will remain on your credit report. According to Experian.com, a Chapter 13 will be deleted seven years after the filing, and the duration is 10 years for Chapter 7 bankruptcy.

Many people think that they will not be able to get any type of credit for years after a bankruptcy filing, but this is not the case. Depending on the circumstances, you may be able to get credit cards and car loans shortly after your bankruptcy is finalized. However, you will wind up paying inflated rates of interest, and there will typically be significant annual fees and high interest rates on the credit cards. If you have no bad debt after the bankruptcy you will be able to qualify for a good mortgage in as little as 2 or 3 years.

Yes, a bankruptcy is going to have an impact on your credit, but it is not as severe as many individuals are led to believe. We offer no obligation, free case evaluations to people in Medford, Coos Bay, Klamath Falls, and a number of other communities in Oregon and Washington. If you will like to set up an appointment, send us a message through our contact page and we will get back to you in short order.

Is Bankruptcy My Only Option?

If your level of debt has become unmanageable, bankruptcy may be an option, but the ideal course of action will depend upon the circumstances. There are some situations that can be addressed without filing for bankruptcy, and you can always file at some future time if you find that there is really no viable alternative. Let’s look at a couple of basic scenarios that can potentially be resolved without a bankruptcy filing.

Stop Collection Agency Harassment

By law, debt collectors must adhere to certain statutory rules, but it is not entirely uncommon for them to step out of bounds. These guidelines are contained within The Fair Debt Collection Practices Act (FDCPA) that was enacted back in 1978. First and perhaps most importantly, if you choose to do so, you can send collectors a cease-and-desist letter, and they will be forced to discontinue the collection calls. Short of that, under provisions contained within the statute, debt collectors cannot contact you before eight a.m. or after nine p.m. Plus, they cannot contact you at work if they are aware of the fact that your employer does not allow you to take calls from collection agencies while you are on the job or if you have told them to not call you at work. If you have an attorney handling your debt relief efforts, the collectors will be required to speak with your lawyer and they will not be allowed to contact you personally.

There is also the matter of outright harassment. Debt collectors can be held liable if they threaten you with physical violence of any kind, and it is also illegal for them to threaten to mar your reputation. They are prohibited from using any foul or abusive language during their communications, and they must identify themselves as bill collectors when they contact you. If a bill collector violates any of these parameters, you can file a lawsuit to collect any damages that you may incur, and a successful judgment can include your legal fees and as much as $1000 in statutory damages.

Negotiate with Creditors

If credit card debt is the source of your financial difficulties, you can try to negotiate with the credit companies before the matter goes to a collection agency. Company policies vary, and the specifics of the situation will certainly be taken into account. You can ask if they will be willing to change your payment date, and you may be able to negotiate a lower interest rate. Under some circumstances, the company may be willing to provide a payment reduction on a temporary basis. These are a few possibilities, but there are others.

Schedule a Free Case Evaluation

There are a number of different debt relief strategies that can be implemented, and it can be difficult to make the right choice without the appropriate legal advice. Our service area includes Eugene, Portland, Salem, Roseburg, and a number of other cities in Oregon and Washington. If you will like to discuss your options with a local bankruptcy attorney, you can set up a free consultation if you call us right now at 1-800-682-9568.

Feeling at Ease With Your Bankruptcy Attorney

Money matters are sensitive and personal, and there are not too many people that are anxious to discuss their financial affairs with someone they have just met for the first time. This is certainly a prudent way to conduct yourself, but the “close to the vest” approach can have a downside if you are having financial difficulties. A bankruptcy attorney can guide you toward an effective debt management solution, but you may feel a bit uncomfortable asking for help.

This is understandable and it is human nature, but you don’t have to be concerned. Our bankruptcy law firm has been assisting people for more than three decades, and we have worked with tens of thousands of clients in Oregon and Washington. Given our vast experience, there is no scenario that we haven’t seen before, and we always go the extra mile to make our clients feel comfortable throughout the whole process.

We get to know our clients, we put them at ease, and we answer all of their questions in a thorough but down to earth and understandable manner. For some individuals, a Chapter 7 liquidation bankruptcy will be the best choice. With this form of bankruptcy, unsecured debts are discharged entirely, and you can usually maintain ownership of your home and your car if you are up-to-date on the payments. Other people will be better served by a Chapter 13 reorganization that allows a person to make payments over time until the debts are paid or discharged.

Our firm offers free case evaluations, so you have the opportunity to meet us and get to know your bankruptcy attorney before you make any firm commitments. This is a simple but effective way to break the ice, and we also make personal interactions quite convenient for people in many different parts of Oregon and Washington. We have offices in Portland, Eugene, Medford, Grants Pass, Coos Bay, Tigard, Bend, Klamath, Salem, Vancouver, and Tri-Cities, so you won’t have to travel very far to get sound legal counsel. If you will like to take the first step toward a comfortable financial future, send us a message through our contact page to request a consultation with a licensed OlsenDaines bankruptcy attorney.