Avoid Post-Bankruptcy Mistakes

If you are being overwhelmed by ever-spiraling debt, bankruptcy can provide a solution, and the benefits are realized immediately. You get an automatic stay when you file for bankruptcy, and this makes most debt collection efforts come to a halt. The two different types of bankruptcies that most people (who are not in business) use are Chapter 7 and Chapter 13. Under a Chapter 7, unsecured debts like credit card balances and medical bills can be completely discharged. Plus, if you are current on your payments and you don’t have more than $40,000 in equity, you can maintain ownership of your home. The same thing is true for your car with an equity limit of $3000.

With a Chapter 13 bankruptcy, your debts are reorganized, and you make monthly payments over a three-year or five-year period. The court determines how much of your income is “disposable,” and these funds are utilized to make the payments. There are priority debts, and non-priority unsecured debts. If there’s not enough money to make payments on all of the debts, all or some of your unsecured debts may be discharged under Chapter 13.

Before you can get a discharge with either type of bankruptcy, you have to complete an accredited debtor education course. You can see a list of the approved providers if you visit the United States Department of Justice website. The information that you will receive should help you make good choices going forward so that you can avoid post-bankruptcy mistakes and steer clear of future financial problems.

Everyone makes errors, but the key is to learn from them. If you had to file for bankruptcy because you made poor financial decisions, you should certainly go forward with a new perspective once you are given a fresh start. You may be surprised to find out that you can obtain credit cards, a car loan, and even a mortgage after you file for bankruptcy if you act wisely and consistently meet all of your financial responsibilities.

Take Control of Your Financial Future!

A bankruptcy filing can ease the pressure in the present and help you regain control of your financial future. If you are in Portland, Eugene, or Medford, Oregon, we have a bankruptcy law office nearby, and we would be more than glad to provide you with a free consultation. To set up an appointment, call our office toll-free at 800-682-9568.

Does Bankruptcy Wipe Out Lawsuit Judgements?

If you fall behind on a debt, the creditor can file a lawsuit in an effort to get a judgment against you.  A judgment allows a creditor to garnish wages and bank account and it also allows them to put a lien on your home.  Many people who are in this situation consider the possibility of a bankruptcy filing. When you file for bankruptcy, you get an automatic stay immediately. This prohibits creditors from trying to collect on their debts while the stay is in place, and a pending lawsuit would be stalled. Even if there is an existing judgment, if the debt is dischargeable, bankruptcy would in fact wipe it away when the discharge is granted, so you will be free going forward.

Dischargeable debts are typically unsecured debts like credit card balances, certain types of personal loans, and unpaid health care bills. There are other types of debts that cannot be discharged. For example, the laws are very strict when it comes to family law matters. Child support payments are never going to be to be discharged through bankruptcy, and spousal support is also a non-dischargeable debt.

Many people struggle with student loan debt and unfortunately this type of debt cannot be discharged through bankruptcy (with limited exceptions). If you have a judgment against you due to an injury or death that was caused by an instance of drunk driving, your liability will not go away if you file for bankruptcy. Plus, if you owe any type of debts to the government, like back taxes or fines, they would not be discharged through a bankruptcy filing. These are all debts that are automatically non-dischargeable, but a creditor can file an objection to a discharge on a debt that is not always non-dischargeable when certain circumstances exist.

Schedule a Complimentary Case Evaluation Today!

There is no reason to sit around wringing your hands when you reach the conclusion that your debt has become overwhelming. Bankruptcy can be the solution that provides you with a new lease on life so that you can move forward and start to rebuild your credit history. We have an office that serves the Tri-Cities in Washington, and we have a Vancouver location. Our firm also assists clients throughout the state of Oregon, and we offer free, no obligation consultations. Give us a call right now at 800-682-9568 and we will to be glad to schedule an appointment that fits into your schedule.

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.

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.

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.

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.

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.

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.

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.

Which Type of Bankruptcy Should I Choose?

When bills pile up and creditors start calling, it’s natural to feel lost and unsure of what steps to take next. One option you might be considering is bankruptcy, which can help you regain financial stability by eliminating or restructuring your debt. But with several types of bankruptcy available, how do you know which one to pick? Here are the most common chapters of bankruptcy to help you determine which is best suited to your needs.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is intended to provide relief for individuals with limited assets and low income from their unsecured debts. In order to qualify for this chapter, you must be able to pass a means test, which generally means your income does not exceed the median income in your state of residence. Under Chapter 7 bankruptcy, you may be able to eliminate debts such as:

  • Medical bills
  • Overdue utilities
  • Outstanding credit card debt
  • Lease agreement deficiencies
  • Collection agency accounts

Even though this chapter can wipe away many kinds of debt, it doesn’t cover everything. Some types of debt may stick around even after filing for bankruptcy. For example, most people still need to pay secured debts, taxes, child support or student loans.

How Does Chapter 7 Bankruptcy Work?

Chapter 7 bankruptcy is commonly referred to as a liquidation bankruptcy because the courts will assign a trustee to sell any of your non-exempt assets. The proceeds from those sales will go toward paying off your creditors. Non-exempt assets can include items such as:

  • Valuable artwork
  • Jewelry or expensive clothing
  • Investments outside of retirement accounts
  • Valuable collections or musical instruments
  • Properties outside of your primary residence
  • Newer-model vehicles in which you have equity

It’s important to note that it is possible to retain your house and your vehicle when filing for this type of bankruptcy. Though it may be difficult to face liquidation, doing so could allow you to eliminate debts while retaining the assets that are most important to you and your family.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is intended to provide debt relief for individuals with more assets or higher disposable income. This is a good option for anybody who has enough income to make reasonable payments toward debts even after basic living expenses are met. If you are unable to pass the means test required for Chapter 7, then this chapter may be right for you.

How Does Chapter 13 Bankruptcy Work?

Chapter 13 is often called a reorganization bankruptcy because it restructures debts to make them more manageable, rather than completely eliminating them. If you file for this chapter, you will create a payment plan proposal to repay your creditors. Unsecured debts, such as credit card balances or unpaid medical bills, may be partially forgiven to provide some relief.
However, certain debts need to be paid in full. These can include:

  • Alimony
  • Child support
  • Mortgage delinquencies
  • Motor vehicle payments
  • Taxes

With this type of bankruptcy, you can keep all of your property while paying down debts and reaching financial stability. Though the process can feel overwhelming, you don’t have to face it alone. The debt relief attorneys at OlsenDaines can help you each step of the way.

Chapter 11 and Chapter 12

While Chapter 7 and 13 are the most common types of bankruptcy, there are two other options that could be a better fit depending on your circumstances:

  • Chapter 11 is intended for businesses and individuals who do not qualify for another chapter. Similar to Chapter 13, this type of bankruptcy works by reorganizing your debts under a payment plan. However, the debtor will generally have a longer repayment period than those filing for Chapter 13.
  • Chapter 12 is specifically for farmers and family fishermen. It is a lot like Chapter 13, but is designed specifically for farm and fishing operations. Additionally, it gives debtors more opportunity to modify secured debts on property such as home mortgages and equipment loans.

Get Legal Assistance from a Bankruptcy Attorney

Considering bankruptcy, but still unsure of which chapter is right for you? That’s where we can help. At OlsenDaines, it’s our mission to educate, inform, and empower people about their legal options for dealing with debt. We have proudly served residents throughout Oregon for over 40 years with the goal of helping them reach financial stability and security. Whether you want to learn more about your bankruptcy options or you’re ready to start filing, we’re here to make every step easier. Give us a call today to schedule your free legal consultation!