Providing Hope and Help Through Bankruptcy

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Struggling with debt can be an extremely overwhelming and disheartening time in one’s life. The constant stress of balancing bills, expenses, and daily needs can leave individuals and families feeling lost and hopeless. This is where bankruptcy can provide a fresh start and a glimmer of hope in an otherwise challenging situation. However, determining whether bankruptcy is the right choice can be daunting and requires careful consideration. This blog aims to guide you through deciding if bankruptcy is right for you and provide the support and resources needed to move forward.

As mentioned, bankruptcy is designed to help individuals and businesses struggling with debt and cannot make ends meet. However, waiting too long to address the issue only amplifies it and makes recovering financially harder. Therefore, it is crucial to seek help as soon as possible and not let the mounting debt take over. At our firm, we understand the stress and anxiety of financial struggles and help our clients navigate their options to help them find the best path forward.

Is Bankruptcy the Right Debt Relief Option for You?

The decision to file for bankruptcy is not easy and requires careful consideration. At our firm, we work with our clients to determine if bankruptcy is the right choice for their situation and whether any alternatives may benefit them. One such alternative is debt consolidation, which allows individuals to consolidate their debt into one payment and lower their interest rates. Refinancing might be the best option for those who own property or have high equity in their home. With our extensive experience, we can help guide you toward the best solution for your unique needs.

What Type of Bankruptcy Should You File?

One of the many misconceptions about bankruptcy is that it always involves losing assets and starting from scratch. However, that is not always the case. Chapter 13 bankruptcy may allow an individual or family to keep their property and restructure their debt into a manageable plan. Chapter 7 bankruptcy, on the other hand, may require the sale of some assets, but often not all. It is important to understand the differences between the types of bankruptcies and which one is best for you. Our firm can provide personalized support and advice to help you make informed decisions.

Importance of Getting Help Before Making the Decision to File Bankruptcy

Deciding whether to file for bankruptcy is a sensitive and complex matter. Understanding your options and consulting with an experienced professional to help you navigate the process is essential. Our law firm has been helping individuals and businesses since 1978 and has the expertise and knowledge to help you through these challenging times. We understand that financial struggles can be difficult and emotionally draining. Therefore, our team of attorneys is committed to providing you with the support and resources needed to help you make informed and confident decisions for a brighter financial future. Do not let your debt take over; let us help you find a way forward.

Contact OlsenDaines for Bankruptcy Advice and Guidance

Our legal team can help you get your financial life back on track and ensure that you are making the best decisions for you and your family. If you are interested in filing for bankruptcy or discussing your other debt-relief options, contact OlsenDaines. We have offices located all 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! We look forward to hearing from you and working with you to find solutions to your financial issues. 

Protecting Your Assets During Bankruptcy: How We Can Help

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Dealing with the possibility of bankruptcy or actually going through the process can be an extremely overwhelming situation for anyone. It is not uncommon for people to feel lost, anxious, stressed, and ashamed of their financial situation. 

At OlsenDaines, we understand how important it is for our clients to not only receive relief from their overwhelming debt but also to protect their hard-earned assets. That’s why we are here to assist you in navigating the complexities of how to protect your assets during bankruptcy.

Understanding Bankruptcy and Asset Protection

Most people file for bankruptcy due to job loss, medical debt, or divorce. Whatever the reason, our team of bankruptcy attorneys can help you navigate through this process and make sure that your assets are protected. One of the most significant concerns clients have is whether or not they will lose their assets if they file for bankruptcy. The answer is no, in almost all cases. We will work with you to protect your home, cars, retirement accounts, and other personal property. We are here to ensure that you keep the assets you value the most.

How to Stop Creditor Harassment

Another frequently asked question is whether bankruptcy will stop creditors from harassing and suing them. Again, the answer is yes. Once you file for bankruptcy, creditors are immediately notified through the federal court system and must immediately stop harassment, lawsuits, and any other form of collection of debts. We understand that the constant harassment can be troubling, and protecting our clients from continued harassment is a top priority for us.

Property Listing and Exemptions

As part of the bankruptcy process, you must list all of your property, both real and personal. This includes your home, vehicles, retirement accounts, and household goods and belongings. But there’s no need to worry – there are specific exemptions under state or federal law that protect your property throughout the bankruptcy process. We understand the nuances of federal bankruptcy law and will walk you through each step so that you understand how assets are protected and how a fresh start can help rebuild your life.

How to Rebuild Credit After Bankruptcy

Another question we commonly receive is whether or not filing for bankruptcy will affect future credit. While it is true that bankruptcy does affect credit scores, there are strategies we can use to mitigate any harm that may negatively impact your credit record. We can help you rebuild your credit score after bankruptcy and get back on track to a healthy financial future.

Contact Us for Help Protecting Your Assets During Bankruptcy  

The legal process of filing for bankruptcy and protecting your assets can be confusing and overwhelming, but it doesn’t have to be. At OlsenDaines, our experienced bankruptcy attorneys can help. We will provide you with the guidance you need to protect your assets and navigate through the process of filing for bankruptcy. We are here to help you receive a fresh start and rebuild your financial future. We believe that everyone deserves the chance to move past their debts and have a bright financial future.

Contact us today to schedule a free consultation and get started on the path to financial freedom.

Protecting Your Assets: What to Do When You’re Behind on Mortgage and Car Payments

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Knowing how to protect your assets can be difficult, but an experienced attorney can help. It’s never a great feeling when you’re falling behind on your mortgage or car payments. You start to feel like you’ll never catch up or get back on track. It can be an incredibly stressful situation, especially if you’re relying on that car to get to work or don’t want to lose your home. Luckily, you have options. Filing for bankruptcy can be a great solution for protecting your assets and giving you the breathing room you need to get back on your feet. In this post, we’ll go over what happens when you’re behind on mortgage and car payments and how you can protect yourself by filing for bankruptcy.

What To Expect When You’re Behind On Payments

The first thing you need to know is that when you’re behind on your mortgage or car payments, creditors have the legal right to take possession of the asset and sell it to recoup the money you owe. Foreclosure or repossession of assets can obviously be a nightmare scenario, especially when it comes to your home. The good news is that bankruptcy can stop this process, at least temporarily.

How Filing for Bankruptcy Can Help You Protect Your Assets

When you file for bankruptcy, creditors are required by law to halt any foreclosure or repossession proceedings. This break in collection efforts can give you the time you need to catch up on payments and get back on track.

Of course, filing for bankruptcy isn’t a magic wand that will make all your debts disappear. However, it does give you more options when it comes to paying back what you owe. When you file for Chapter 13 bankruptcy, for example, you can create a payment plan to pay back debts over a period of three to five years. The payment plan can include the arrears on your mortgage or car loan, which you can pay back in smaller, more manageable installments. A plan with smaller payments can be a huge relief for those who are struggling to make the full payments all at once.

One thing to keep in mind is that bankruptcy can have an impact on your credit score. is something that will need to be weighed against the benefits of getting back on track with your payments. That being said, if you’re already behind on payments, your credit score is likely already taking a hit, and bankruptcy can actually help you start to rebuild your credit over time. It’s not a decision to be taken lightly, but it can be a very viable solution for those who are struggling to keep up with debt.

How Do You Know If You’re Eligible to File for Bankruptcy?

An important note for those who are considering bankruptcy is that there are certain requirements you’ll need to meet to be eligible. For example, to file for Chapter 13 bankruptcy, you’ll need to have a reliable source of income to make the payments on your repayment plan. You’ll also need to meet certain debt limits, which can vary depending on where you live. Working with a bankruptcy attorney can help you understand your options and whether bankruptcy is the right choice for you in protecting your assets.

How Our Attorney’s Can Help You Protect Your Assets

When facing the daunting task of being several months behind on mortgage payments due to medical debt and a medical leave of absence, clients named Steven and Gloria were fortunate enough to have federal bankruptcy laws on their side. By working with OlsenDaines Law firm, their home was saved, and they were able to pay back the amount they owed over a five-year period. This payment plan allowed them to stay in their home, raising their three minor children in a stable environment. By retaining the services of OlsenDaines, all creditors were referred to the firm, and the federal bankruptcy petition was prepared accurately and thoroughly. With the guidance of an attorney, clients can rest assured that their matters will be handled carefully and with their best interest in mind.

Contact Us for Help Protecting Your Assets

If you’re falling behind on your mortgage or car payments, it can be an incredibly stressful time. However, it’s important to know that you do have options, and one of those options is bankruptcy. By filing for bankruptcy, you can protect your assets, create a payment plan to catch up on debts, and even start to rebuild your credit over time. It’s not a decision to be made lightly, but it can be a very effective way to get back on track and give yourself a fresh start. If you’re struggling with debt, contact a bankruptcy attorney to discuss your options and see if bankruptcy is the right choice for you. Contact us today to schedule your free bankruptcy consultation.

How to file an adversary proceeding for student loan bankruptcy

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As most people dealing with debt know, there are many different kinds of debt and some types are more difficult to eliminate in bankruptcy than others. Student loan debt is one such debt that’s not automatically discharged in bankruptcy proceedings. Unfortunately, this fact has led many people to believe that student loans can’t be discharged at all. Many borrower can discharge student loan debt through bankruptcy, but it requires additional steps.

This post explains how to file an adversary proceeding for student debt bankruptcy in Oregon, and help you decide whether it’s the right move for you.

How Do You File an Adversary Complaint for Student Loan Bankruptcy?

Getting student debt discharged through bankruptcy requires filing for an adversary proceeding. An adversary proceeding is a legal action that occurs within a bankruptcy case; it’s a formal process used to address specific issues or disputes between various parties that cannot be resolved through the regular bankruptcy process.

What are the Steps to Getting Student Debt Discharged through Bankruptcy?

The first step should always be consulting with an experienced bankruptcy attorney. Bankruptcy laws are extremely intricate, and this process is no exception. Need help finding a student loan lawyer? Check out our blog on how to hire the best student loan lawyer for you. 

If you and your bankruptcy attorney believe your case meets the criteria, you should proceed with these steps:

  • File the complaint: The complaint is filed with the bankruptcy court overseeing your case. There are specific forms and procedures you need to follow, which your attorney will be familiar with. Filing the complaint initiates the adversary proceeding and sets the legal process in motion.
  • Serving the parties involved: After filing the complaint, it must be properly served to all relevant parties, including the student loan lender or servicer. This ensures that everyone involved is aware of the legal action and can respond accordingly.
  • Responses and negotiations: The opposing party will respond to your complaint. This usually leads to negotiations or settlement discussions. Your attorney will guide you through these interactions and help you make informed decisions about potential resolutions.
  • Court proceedings: Depending on the progress of your adversary proceeding, you might need to attend a deposition and trial. Your attorney will represent your interests and present your case to the judge.
  • Decision rendered: The judge will ultimately make the decision. If the court rules in your favor, your student loans will be fully discharged.  The judge can also order a partial discharge if it appears you can pay back some but not all of your student loans.

How Do They Decide Whether to Discharge Your Student Debt?

The judge will make a decision based on your specific situation. The decision is based on three main guidelines:

  • Are you unable to maintain a minimal standard of living for you and your dependents? This is determined by current income and expenses.
  • Is there a likelihood you will be able to pay back your loans in the future? Factors the judge will consider include disabilities, long-term unemployment, and other adverse circumstances.
  • Have you made a good faith effort to repay your loan up until this point? If you’ve enrolled in an income-driven repayment plan, applied for forbearance or forgiveness programs, or consolidation, this can be used as evidence that you have made a good faith effort to pay.

Are You a Candidate for Student Loan Debt Discharge through Bankruptcy?

If student debt is crushing your ability to become financially independent, you may be a good candidate for student debt forgiveness. Of course, as with any possible legal strategy, it’s vitally important to get an opinion from a lawyer with specialized knowledge – in this case, an experienced bankruptcy attorney. An lawyer who focuses his practice on bankruptcy issues will understand the ins and outs of this particular area of law and can review with you some important considerations before you move forward.

While discharging student loans through bankruptcy is not guaranteed, taking the right steps and seeking professional guidance can increase your chances of achieving a favorable outcome and gaining relief from your student loan debt. If you’re ready to start exploring your options for filing an adversary complaint for student loan bankruptcy, give us a call today. Our experienced Oregon-based bankruptcy attorneys are ready to answer all your questions.

How to Get Student Loan Forgiveness After the 2023 Supreme Court Ruling

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Are you burdened with a mountain of student debt that feels like it will never go away? Especially after the Supreme Court’s recent ruling on the student loan forgiveness plan, millions of Americans are wondering if they will ever find relief from these insurmountable loans. 

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, even after the Supreme Court’s ruling. In this blog post, the debt relief experts at OlsenDaines will explain what you need to know to get rid of your student loans and find financial freedom. 

About the Supreme Court’s Ruling Against Student Loans

In late 2022, the Biden Administration announced its plan to discharge more than $400 billion in federal student loans across the country. Most borrowers would have been eligible for between $10,000 and $20,000 of immediate relief. However, a few states contested the plan and claimed it was unconstitutional, sparking a legal battle that would ultimately determine the outcome of Biden’s original plan.

The case was brought all the way up to the Supreme Court, which on June 30th reached a decision: that the President did not have the authority to automatically discharge these loans. Biden’s original student loan forgiveness plan would not be allowed to proceed.

Ways to Get Rid of Student Loans

Though the Supreme Court’s decision was disappointing for student loan borrowers across the country, that doesn’t mean it’s time to despair. Most people don’t realize that they may already qualify for these other methods of student loan forgiveness:

Filing for Bankruptcy

Historically, student loans have been considered non-dischargeable through bankruptcy. However, thanks to the Department of Education’s policy changes in late 2022, student loan discharge is more accessible through bankruptcy than ever before. The catch is that you have to demonstrate that the loans are inflicting undue hardship upon your financial situation. 

Unfortunately, there is no strict definition of undue hardship – which is why it was so challenging to use bankruptcy for student loan discharge in the first place. However, the Department of Education has established a list of 14 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

While you don’t have to meet all the guidelines to qualify for full or partial discharge, meeting several of the criteria will increase your odds of a favorable outcome. It’s also worth noting that the process of proving undue hardship can be complex, and it’s important to have a skilled and experienced bankruptcy attorney on your side. An attorney can help you navigate the process and increase your chances of success.

 

Income-Driven Repayment Plans

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. And, IDR plans offer complete loan cancellation after making a certain number of qualifying payments – typically over the course of 20 or 25 years. Some of the most common IDR plans include:

  • Pay As You Earn (PAYE)
  • Revised Pay As You Earn (REPAYE)
  • Income-Based Repayment (IBR)
  • Income-Contingent Repayment (ICR)

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. 

In addition to the four 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 your debt more manageable. SAVE is rolling out in the summer of 2023 and goes into full effect beginning 2024.

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 10 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. To see if your employer qualifies you for this type of loan forgiveness, use the Department of Education’s search tool for employer eligibility. 

How a Student Loan Lawyer Can Help You

Though there are several methods you can use to find relief from your student loans, the process is rarely easy. But, you don’t have to face it all on your own. At OlsenDaines, we strive to provide our clients with the information and resources they need to combat debt and find financial stability. Whether you need help determining which program is right for you or you need help navigating a bankruptcy case, our skilled lawyers have your back. 

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

Explaining the New Bankruptcy Discharge Process for Student Loan Borrowers

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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.

Debt Snowball vs Debt Avalanche

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Eliminating debt can feel like an overwhelming task – especially without the right plan in place. Thankfully, there are many different repayment strategies that you can choose in order to begin rapidly paying off your balance. Two of the most popular and effective debt repayment plans are known as the “snowball” and “avalanche” methods. While these tactics are similar, they have some key differences that can help you decide which strategy is best for you.

What is the Snowball Method?

With the debt snowball method, you pay off debts in order of smallest to largest balances. By putting the majority of your money toward loans with smaller balances and making minimum payments to all other debts, you can swiftly cut through your debts. This method is popular because it is easy to implement and provides quick results, which is great for building momentum and motivation.

What is the Avalanche Method?

In the debt avalanche method, you pay off loans based on interest rates. By targeting loans with higher interest rates first while making minimum payments to any other debts, you can quickly pay off debt while cutting down on the amount of interest you pay over time.

Though this tactic is great for eliminating debt quickly and with the least amount of interest, it is a little more difficult to implement and keep up with. The debt avalanche method also produces slower short-term results, which may be challenging for individuals who struggle with motivation.

Which Debt Repayment Method is Best?

Unfortunately, there is no “one-size-fits-all” plan when it comes to debt payment plans. It all comes down to which plan you can feasibly implement and keep up with – after all, no plan is useful if you won’t be able to stick to it. To help you determine which tactic may be better for you, here are some pros and cons of both debt repayment strategies:

Debt Avalanche

  • Eliminates debt faster
  • Reduces total interest paid
  • More difficult to implement
  • Takes more time to see results

Debt Snowball

  • Produces results quickly
  • Builds motivation and momentum
  • Takes more time to eliminate debt
  • Requires you to pay more interest

When to File for Bankruptcy

If you have a mountain of debt that you are struggling to pay, these repayment strategies may still feel too overwhelming. In some cases, filing for bankruptcy is the best way to take control of your financial situation. Here are some signs that you should file for bankruptcy:

  • You’re at risk of foreclosure
  • Your liabilities exceed your income
  • You don’t have any savings
  • You’ve already tried negotiating

Get Legal Help Today

Don’t let your life become bogged down by unmanageable debt. If you’re struggling to make ends meet because of debt, it may be time to contact a legal expert who can help you assess your options. That’s where the trusted attorneys at OlsenDaines can help. Our team has over 40 years of experience serving Oregon and Washington, and we strive to make it easy for you to get back on your feet. To get started, schedule a free legal consultation today.

 

Do You Still Owe Taxes if You File for Bankruptcy?

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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.