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.

Are All Debts Discharged in Chapter 7?

A Chapter 7 bankruptcy can be a good choice for people who are looking for a fresh start. Many debts can be discharged through a Chapter 7 filing, but there are some types of debts that are not dischargeable. Before we get into the distinctions, we should explain a bit about Chapter 7 eligibility. To be able to file for this type of bankruptcy a person needs to pass a means test.

We have offices in Medford, Eugene, Portland, and numerous other cities in Oregon. If you live in the Beaver State, and your income is less than the median, you will pass this means test, and you would be able to qualify for a Chapter 7 filing. Even if you do not pass the test on this level, you may still be able to qualify if you have very limited disposable income after to your essential responsibilities are met.

Secured debts are debts that have a lien on property that was purchased with credit.  If a person wants to keep collateral during a chapter 7, that person needs to stay current on the payments or the lender will be able to repossess the collateral. Other debts that survive bankruptcy are spousal support and child support, student loans and most taxes.  Some taxes can be eliminate in bankruptcy and an experienced bankruptcy attorney can analyze a person’s taxes to determine if they can be discharged.

Debts that can be discharged include, but are not limited to, unsecured debts like credit card balances, health care bills, accounts that have been turned over to collection agencies, personal loans, utility bills that are overdue, and checks written on insufficient funds (assuming there was no criminal intent) and business debts.

Schedule a Free Case Evaluation Right Now!

If you would like to discuss your financial situation with a licensed attorney, we would be more than glad to help. We offer free, no obligation case evaluations, and we assure you that you will feel completely comfortable from the first moment that you walk through our doors. To request an appointment, click this link and follow the simple instructions: Portland, OR bankruptcy lawyer.

Can a Bankruptcy Wipe Out Income Tax Debt?

People sometimes assume that a bankruptcy filing is a panacea that will wipe out all debts permanently, including tax debts. In fact, this is not the case. The details will depend upon the form of bankruptcy that is filed and the type of tax payment that is delinquent.

Chapter 7

A Chapter 7 bankruptcy can potentially result in a discharge of income tax debt if certain conditions are met. There are many rules, but the 3 primary rules are: 1) the tax year must be more than 3 years old at the time of the bankruptcy filing, 2) actual filing of the return has to have taken place in a timely manner, and the internal IRS or state assessment has to have been entered at least 240 days before the bankruptcy filing. If all of these conditions are met, the tax debts can usually be discharged.

Chapter 13

In a chapter 13 reorganization bankruptcy priority debts will be paid first. An income tax delinquency will be a priority debt, so your repayment plan can be structured to pay the taxes back over time and avoid any tax garnishments. The other benefit is that we can usually eliminate all future interest and penalties while paying the taxes back through a chapter 13.

Schedule a Case Evaluation

Our firm serves people in many different cities throughout the states of Oregon and Washington. If you are in Tri-Cities, Vancouver, Eugene, Salem, Portland, Bend, Medford or any other community in the Oregon our southern Washington, we are just a phone call away. We offer free, no obligation bankruptcy case evaluations, and you can set up an appointment right now if you give us a call at 1-800-682-9568.

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.

Can My Car Get Repossessed During Chapter 7 Bankruptcy?

Catch-22 situations can present themselves when financial difficulties arise. One of them is the matter of transportation to and from work. Let’s say that you fall behind on your car payment because you are having monetary problems, and your vehicle is repossessed. Without a car, you may find it hard to get to work on time or complete a successful job search if you are unemployed. You lost the vehicle due to a lack of resources, but it will be even more difficult to satisfy your creditors without transportation. If you find yourself in this position, a Chapter 7 bankruptcy filing can provide a solution.

As soon as you file for Chapter 7 bankruptcy, you get an automatic stay. This means that your creditors cannot try to collect debts for a prescribed period of time while the bankruptcy process is underway, so your car can not be repossessed. However, the lender who holds the note on the vehicle can file a motion to get permission from the judge to repossess.

If you were behind on the payments when you filed the bankruptcy, you can potentially make arrangements with the lender to bring the payments current. After this is done, you will be able to retain possession of the car after the bankruptcy was finalized. Redeeming a vehicle is another interesting possibility. When you file a Chapter 7, you may be able to redeem the car by paying the lender the fair market value, even if it is far less than the amount that you owe on the car.

Chapter 7 Bankruptcy Can Free Up Resources

You may find it hard to pay your car payment because you have unmanageable credit card debts or medical bills. If you can get out from under these unsecured debts, you will have the money you need to make your car payments on time. If you were to file a Chapter 7 bankruptcy, the unsecured debt will be discharged. However, as long as you are current on your car payment, you will be allowed to keep the car (unless you had a great deal of equity in the vehicle).

We have offices in numerous different cities in Oregon and Washington, including Eugene, Portland, Medford, and Salem. If you will like to discuss a potential Chapter 7 bankruptcy filing with one of our attorneys, we will be more than glad to assist you. You can set up a free consultation right now if you call us toll-free 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.

Bankruptcy Is Not a Badge of Dishonor

There are certain trigger words that can have negative connotations in some circles, and bankruptcy is one of them. As attorneys who help people who are struggling with debt in Portland, Vancouver and other cities in Washington and Oregon, we definitely understand this dynamic, but it is misguided. Bankruptcy is a legal tool. If you are experiencing financial difficulties for any reason, the law allows for corrective actions so that you can get back on track financially.

At the same time, a very significant percentage of people who file for bankruptcy handled their finances perfectly well until they were confronted with unexpected health care bills or other expenses. A study that was conducted in 2016 by T.H. Chan School of Public Health at Harvard along with National Public Radio and The Robert Wood Johnson Foundation shed some interesting light on the subject. Over a quarter of the respondents stated that health care expenses that accumulated over the preceding two years yielded very negative financial consequences. Four out of ten received collection calls from health care providers, and 23 percent of the poll participants were forced to take on credit card debt that will be hard to manage. Seven percent of these individuals had to file for bankruptcy.

Regardless of the underlying circumstances, bankruptcy can give you a fresh start, and you are not necessarily being unfair to your creditors if you take this route. With a Chapter 13 bankruptcy, you simply reorganize your debt and make payments that you can afford. The court requires you to utilize all of your disposable income after you pay for the basic necessities of life to pay down your debt. Creditors really can’t ask for anything more than that. A Chapter 7 bankruptcy does wipe away unmanageable debt, but you can’t qualify for this type of bankruptcy if your income will allow you to pay back your creditors.

We understand the fact that we discuss very delicate financial matters when we consult with our bankruptcy clients in Portland, Eugene, TriCities, Vancouver, and the other cities that we serve. This area of the law is our passion because we sincerely enjoy helping people. There is no need to feel any sense of uneasiness or trepidation. If you will like to obtain more information about bankruptcy before you proceed further, you can learn a lot if you read through our frequently asked questions. When you are ready to move forward, you can send us a message through our contact page to request a complementary, no obligation case evaluation.

Does Bankruptcy Discharge Alimony Responsibilities?

A bankruptcy filing can provide debt relief, but it is not a magic wand that makes every type of debt disappear forever. Certain types of debts are looked upon as priority debts that cannot be discharged via a bankruptcy filing. If you are required to pay your spouse alimony or child support, this would be a priority debt, and it could not be discharged. You would still be required to make your alimony payments. However, the bankruptcy filing could help if you are finding it difficult to keep your alimony obligation current.

To explain by way of example, let’s say that you are divorced, and you are required to make alimony payments. Over a period of time, you have accumulated a number of credit cards, and the payments are more and more difficult to make. You are also making payments on some large medical bills. These expenses eat up a large chunk of your disposable income, so it is hard for you to keep your other responsibilities current.

Under these circumstances, if your income is less than the median income in your state, you could choose to file for a Chapter 7 bankruptcy. We should point out the fact that it is possible to qualify even if your income is more than the median if you have very little disposable income left after you pay for the basic necessities of life. You get an automatic stay when you file for this type of bankruptcy, so most creditors have to suspend their collection efforts. However, this does not extend to alimony payments.

Your nonexempt property would be liquidated by the trustee to pay back unpaid debts under a Chapter 7, but most people who file have little to no property that is not exempt. Going back to our example, if you don’t have much property that can be liquidated, the credit card debt and medical expenses would be discharged permanently after the bankruptcy became final. Since you would not have to pay these debts anymore, it would be much easier to make your alimony payments on time.

Schedule a Free Consultation

If you reside in Tacoma, Vancouver, or tri-cities Washington, we have an office near you, and we also have locations throughout the state of Oregon. We offer free bankruptcy case evaluations, and we would be glad to gain an understanding of your situation and make the appropriate recommendations. To schedule an appointment, give us a call at 1-800-682-9568.

What Can I Keep When I File for Bankruptcy?

If you are thinking about filing for bankruptcy, you may be concerned about the possibility of surrendering all your property so that it can be liquidated to pay back your debts. In fact, you may be able to keep some or all of your property when you file for bankruptcy. It will depend on the circumstances and the type of bankruptcy that you file. First, let’s look at the way that property is handled when a Chapter 7 bankruptcy is filed.

This type of bankruptcy is called a liquidation bankruptcy. Property that is not exempt would become part of the bankruptcy estate, and it would technically be liquidated by the trustee to pay back some of the outstanding debt. However, in many cases, there is no nonexempt property to speak of, so there are no losses. You could keep exempt property when you file for Chapter 7, including your home and your motor vehicle, assuming you have limited equity and you are up to date on your payments. Limited personal property and the tools of your trade are exempt, there are a number of other exemptions.

To qualify for a Chapter 7 bankruptcy, you must pass a means test, because you have to make an effort to pay back your debts if you have the means to do so. If your income is less than half the median in your state of residence, you would pass this test. You could possibly pass the test even if your income exceeds the median if your financial responsibilities severely limit your disposable income. A formula is utilized to make this determination.

Chapter 13 bankruptcy would be an option for you if you cannot pass the means test. This is a reorganization bankruptcy. Your debt is restructured to become manageable, and you use your disposable income to make payments over a three-year or five-year period. It can also be the right choice if you are behind on your mortgage and you want to prevent a foreclosure. You can’t pay back the arrearage to stop a foreclosure if you file a Chapter 7 when you are behind on your mortgage payments. However, you can fold it into a repayment plan if you file for Chapter 13. With a Chapter 13, you can keep all your property if you honor your repayment plan and keep your ongoing obligations current.

Set Up a Free Case Evaluation

We have shared some of the basics with regard to property retention in this brief blog post, but you probably have more questions if you are thinking about a bankruptcy filing. If you would like us to provide you with answers, we would be more than glad to do so. Our firm offers free consultations to people in Portland, Eugene, Bend, and a number of other cities in the state of Oregon. To set up an appointment, call us right now at 1-800-682-9568.