Bankruptcy and Credit Counseling

There are certain requirements that must be met before you can file for bankruptcy. The government wants to make sure that you know exactly what you are getting into, so you have to complete a credit counseling course before you can go through with a bankruptcy filing. There are certain organizations that offer this course that are approved by the federal government. We have offices in Vancouver and Kennewick in the state of Washington, and we also have locations spread throughout the state of Oregon. There is a list of approved credit counseling course providers on the website of the United States Department of Justice, and you can click one of the following links if you would like to identify a credit counseling course provider: Washington credit counseling and Oregon credit counseling. Under federal guidelines, the course must be successfully completed less than 180 days before the bankruptcy filing.

Finishing the credit counseling course is just one of the requirements that must be met if you want to file for a Chapter 7 bankruptcy. This is a liquidation bankruptcy, and it allows for the discharge of your unsecured debts. If you can rid yourself of debts like credit card balances and unpaid medical bills, you may be able to keep up with your other responsibilities more comfortably. To qualify for this type of bankruptcy, you must have limited disposable income. A means test is applied to determine whether or not you qualify for Chapter 7. If your income is less than the median income in your state, you qualify automatically. However, it may still be possible to qualify for Chapter 7 if the state determines that your disposable income is very limited.

In addition to the credit counseling course, there is another educational hurdle that you must cross when you file for bankruptcy. Debts cannot be discharged until you complete a debtor education program, and once again, you can obtain a list of approved course providers if you visit the U.S. Department of Justice website.

Act Now to Regain Control of Your Finances!

Our firm can help if you are struggling under a mountain of debt that you simply cannot manage. We offer free, no obligation case evaluations, and you can set up an appointment that conveniently fits into your schedule if you call us right now at 800-682-9568.

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.

Is Any Property Exempt When I File a Chapter 7 Liquidation?

A Chapter 7 bankruptcy is a liquidation bankruptcy. As the name would suggest, if you file for this type of bankruptcy, you might be required to turn your property over to a bankruptcy trustee. The trustee will liquidate the property and the proceeds would be used to pay back your debts. Some types of debts are considered to be priority debts so these would be paid first. Child support and alimony are two of the priority debts.

There are bankruptcy exemptions, so you don’t necessarily have to give everything that you own to the trustee. The exact nature of the exemptions will vary state-by-state, and there are also federal bankruptcy exemptions. We have bankruptcy law offices in Portland, Eugene, Salem, Medford, and several other cities in the state of Oregon. You have the option of choosing the federal exemptions, or the Oregon State exemptions. However, you cannot mix and match to suit your purposes – it’s either one or the other.

If you use the Oregon exemptions, $40,000 worth of equity in property that is eligible for a homestead exemption will exempt for bankruptcy purposes ($50,000 for a married couple). If have received compensation because you have been a victim of a crime, the funds would be exempt, and up to $10,000 in bodily injury damages can be retained. If you have tools or equipment that you use to make a living, the exemption is $5,000.

In addition to our locations in Oregon, we have an office that serves the Tri-Cities in the state of Washington, and we have a Vancouver location as well. The state exemptions are quite a bit different in Washington. The home equity exemption is $125,000, which is a big improvement over Oregon. You can see a complete list of the exemptions on the Washington State Legislature website.

We are here for you if you would like to discuss a potential bankruptcy filing with a licensed attorney. Our firm offers free, no obligation case evaluations, and you can request an appointment if you send us a message through this page: free bankruptcy consultation.

Filing for Bankruptcy in Oregon

We have bankruptcy law offices in many different cities throughout the state of Oregon, including Portland, Medford, Eugene, Salem, Tigard, Klamath Falls, Coos Bay, Bend and several others. There are federal bankruptcy statutes, but there are also state specific laws that effect bankruptcy. In this post, we will provide an overview regarding some of the specific details that come into play when you file for bankruptcy in Oregon.

First, you have to understand what type of bankruptcy you are going to file. Most individuals will choose between either a Chapter 7 bankruptcy or a Chapter 13. You have to make an honest effort to pay back as much of your debts as you can if you have sufficient disposable income, so there is a means test that you must pass to qualify for Chapter 7, which is a liquidation bankruptcy. You automatically pass this test if your income is less than the median income in the state of Oregon. According to the United States Census Bureau, the median income in our state for a single person is $50,333 per year.  For a household of 4, the median income is $80.170.   You can potentially qualify for Chapter 7 even if your income exceeds this amount if it is determined that you don’t have enough disposable income to devote to a repayment plan.

Before you are allowed to enter into the bankruptcy process, you are required to take a credit counseling course. You also have to take a debtor education course before your debts can be discharged. This requirement can seem like a huge hassle, but it does not take long and it allows an independent party to review your finances before you file the case.  Most people take these courses online and some people do them over the phone. You can click these links to see a list of the approved providers of these tests for residents of Oregon: credit counseling and debtor education.

Simplify the Process!

The best way to file for bankruptcy in Oregon is to sit down and discuss all of your options with a licensed bankruptcy lawyer. One you determine which bankruptcy is right for you, your attorney can guide you through the process each and every step of the way.  Legal assistance is invaluable because it can be complicated to navigate these waters on your own. If you would like to speak with us about your debt, we would be more than glad to assist you. Our firm offers free consultations, and you can request an appointment if you send us a message through our contact page.

What Does a Chapter 13 Filing Entail?

When you start to think about a bankruptcy filing, you should understand the fact that there are different types of bankruptcies, and you will not necessarily qualify for all of them. Chapter 12 is a type of bankruptcy that is available to some family farmers and fishing businesses. Chapter 11 is a reorganization plan that is typically utilized by businesses. The vast majority of individuals who are looking for debt relief will choose either a Chapter 7 bankruptcy or a Chapter 13.

If your income is greater than the median income in the state of your residence, you may not be able to qualify for a Chapter 7. You will be required to submit financial disclosure forms, and you will be deemed ineligible for a Chapter 7 filing if the court determines that you have enough disposable income to pay back a some portion of your debt over time.

Under these circumstances, you would be able to file for a Chapter 13 bankruptcy as long as the amount of your secured debt does not exceed $1,184,200, and your unsecured debt is less than $394,725. (These limits will be adjusted for inflation in April 2019.) This is a reorganization bankruptcy, so the idea is to restructure your debt with a payment plan that will typically last 5 years.

As soon as you file for Chapter 13, you will get an automatic stay. This will put a stop to all collection efforts while the process is underway. You do not have to surrender any property when you file for this type of bankruptcy. Priority debts that must be paid first include child support, spousal support, taxes and some other debt. If you are behind on secured debts, like your mortgage or your car payment, the money that you owe can be paid back over time as part of the repayment plan.

Schedule a Free Bankruptcy Consultation Right Now!

If you reside in Vancouver or the Tri-Cities area in Washington, we have an office near you, and we also have numerous offices spread throughout the great state of Oregon. We offer free initial case evaluations, and you can set up an appointment with a licensed bankruptcy attorney right now if you reach out to us toll-free at 800-682-9568.

Do I Keep My Property in a Chapter 7?

A Chapter 7 bankruptcy is a liquidation bankruptcy. Speaking in a very general sense, this means that your property is turned over to a trustee when you file for this type of bankruptcy. The trustee is required to liquidate the property and the proceeds will be used to pay back as much of your debt as possible. This may sound like a rather unfavorable arrangement, but it is not as bad as it sounds, because most or all of your property is considered to be exempt. This means that you won’t have to surrender this property to the bankruptcy trustee.

If you own your own home, it is probably your most important possession. We practice law in the state of Oregon, with offices in Portland, Eugene, Salem, Medford, and several other cities. In Oregon, up to $50,000 in equity in your home including a mobile home is exempt when you file for a Chapter 7 bankruptcy.  We also have offices in the state of Washington serving Vancouver and Tri-Cities residents.  In Washington, the exemption for homeowners is $125,000.

Your home is not the only type of property that will be exempt when you file for Chapter 7 in Oregon.  Money you received from alimony and child support payments, social security or pensions is all exempt. There are additional exemptions if you receive a settlement for a bodily injury claim.  In addition, if you receive compensation to account for a loss of future earnings, you will not be required to surrender it to the trustee. There are additional exemptions for cars, furniture, personal items, guns and other items.  If a person does not need to use the State homestead exemption (see above), then Federal exemptions can be used which include a “wildcard” exemption in the amount of $13,100 which can be used to protect any asset.

Discreet, Confidential Legal Counsel

We understand the fact that it can be disconcerting to speak about sensitive financial matters with an attorney that you just met. The members of our team have been assisting people for many years, and we chose this area of the law because we sincerely want to help others. When you engage our services, you will speak with a friendly, down to earth bankruptcy attorney who will answer all of your questions and help you make the right decisions. If you would like to set up a complimentary case evaluation, send us a message through the following link:  bankruptcy lawyer.

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.

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.