Oregon Chapter 7 and 13 Bankruptcy Information

Can I do a "Means Test" on my own?

2012-01-30T11:23:00.000-08:00

The most significant change to the bankruptcy law changes in 2005 was the implementation of what is called the "Means Test".

Broadly speaking the Means Test determines two things: 1) whether a debtor can qualify for Chapter 7 bankruptcy, and 2) if not, how much they will be required to pay to their unsecured creditors in Chapter 13 bankruptcy.

If your gross income is above the median for the state that you file in, you will be subject to the means test.

Just because your gross income is above the median does not mean you don't qualify for Chapter 7. A good number of our clients have gross income above the median for their household size in Oregon and still qualify for Chapter 7 bankruptcy. However, in these cases it is critical that the means test be accurate.

There are several online places that claim to be able to perform the means test. In my experience clients who attempt to do their own means test do not do it correctly. The means test formula is extremely complicated, and there can be variances in how your local jurisdiction interprets the means test. In my opinion it is worth having an experienced bankruptcy attorney do the initial means test formula to determine your eligibility.

If a client is on the border for qualifying for Chapter 7 our firm performs an initial means test for an affordable fee, and can then discuss the client's options based on the result of the means test. Many of our clients start with this, and then proceed to file Chapter 7, or Chapter 13 bankruptcy.

If you would like more information about our consumer bankruptcy firm visit www.pacificbankruptcy.com.

You can eliminate a deficiency balance on a second mortgage or line of credit with a bankruptcy

2012-01-25T09:06:00.000-08:00

Many clients have been asking me lately what happens to a second mortgage or line of credit if their home is foreclosed on. Usually in a foreclosure the second mortgage lender or line of credit lender will receive little to nothing on the debt. If this happens you can still be held liable for what you owe on these loans. This is known as a "deficiency balance". For example, if you owe $200,000 on your first mortgage and $60,000 on your second mortgage and the first lender forecloses and receives less than $200,000 in the sale, you may still be liable for the $60,000 second mortgage or line of credit.

If you file bankruptcy, this $60,000 is simply treated as unsecured debt just like a credit card or medical bill. In most cases the debt can be discharged with the bankruptcy.

Given the weak housing market this sort of deficiency balance is very common. The good news is that with bankruptcy you can protect yourself from liability in this situation.

For more information about bankruptcy and our law firm visit www.pacificbankruptcy.com

When you are preparing to file bankruptcy HONESTY is the best policy.

2012-01-16T21:16:00.000-08:00

If you meet with an attorney to discuss your debt relief options, including filing for bankruptcy the worst thing you can do is not tell the attorney the whole truth. Hiding assets, failing to disclose transfers, under-reporting your income and other falsifications can not only put your fresh start at risk, it is also a crime. When you file a bankruptcy case the petition and schedules are signed under the penalty of perjury. So, if they aren't accurate you are essentially lying to the Federal Court - not good.

The more information the bankruptcy attorney has from the start, the better the attorney will be able to help you. Most situations that a client thinks is bad, and is scared to tell their attorney about are not a big deal as long as the attorney has the information. Once the attorney has the information they can help the client find a solution that works. I once had a Chapter 7 client who told me they lived in a manufactured home as a renter and had no ownership interest. Before filing the case a routine property search was done and it turned out the client was on the title as an owner of the manufactured home. I asked the client why they didn't tell me about that and the client told me they were afraid they would lose it in the bankruptcy. The home was 100% exempt, which means there was no chance of the home being liquidated or affected in bankruptcy. I explained this to the client, discussed why it needs to be disclosed and made sure the client understood the implications of not properly disclosing everything. The Chapter 7 case was filed, the home was protected and the client got their discharge and fresh start. Basically, everything was good and the client was debt free. Had the client's case been filed without disclosing the protected asset there could have been a disastrous outcome, including losing the discharge and possible criminal sanctions.

So, remember - your bankruptcy attorney can only help you if they have all of the relevant information from you. When they ask you questions, listen carefully and answer honestly. If you have a doubt whether the attorney needs a certain piece of information just tell the attorney. An experienced bankruptcy attorney will be able to tell you whether it is an issue or not. If it is an issue there may be a solution. But, the attorney can't find a solution unless they have all of the information.

For more bankruptcy information visit ww.pacificbankruptcy.com. Our firm is devoted 100% to helping individuals file cases under Chapter 7 and Chapter 13.

Getting Nowhere - Minimum Payments and Credit Card Debt

2012-01-09T08:02:00.000-08:00

Today I was reviewing a chapter 13 client's file. I noticed the disclosures given on their Bank of America credit card statements. It is truly depressing to see how long it would take for a consumer to pay off a small credit card balance by making the minimum payments. Here was the breakdown:

Client had a current balance of $5,011.61 on her Bank of America Visa card. Small, and manageable, right? Well, if this client is struggling, and can only manage the minimum payments it would take her 25 YEARS to pay this balance off. This is assuming that no further purchases are made on the card and she is only paying on it. What is even more depressing is to see that she would pay a total of over $14,000 of payments over the 25 years!!!

Now, this if for a small card. Many of our Oregon bankruptcy clients are carrying much larger balances and have several different credit cards. They are essentially a slave to the credit card companies by the time they come see us. Many see chapter 7 or chapter 13 bankruptcy as their best option to finally free themselves from such burdensome debt.

If you are caught up in the viscous cycle of credit card debt, or have other debt that is a problem it may be time to talk to a bankruptcy attorney.

For more information about bankruptcy in Oregon and SW Washington, visit www.pacificbankruptcy.com

How long do you have to wait between bankruptcy filings in Oregon?

2011-11-25T08:32:00.000-08:00

If a person has filed a Chapter 7 bankruptcy and received a discharge in that case within 8 years they will not be able to receive a discharge in another Chapter 7 case. The dates that count are the dates of filing, not the dates of discharge. For example, if your Chapter 7 bankruptcy was filed on 1/15/02, and discharged on 4/20/02 you would be able to file a Chapter 7 after 1/15/10. You would not need to wait 8 years from the chapter 7 discharge date.

If you are not eligible to file a Chapter 7 you may still find a lot of protection in a Chapter 13 bankruptcy. It is common for people who have filed and received a discharge in a chapter 7 case to find themselves in a bind due to unexpected medical bills, a car repossession or other debt. In these cases if 8 years haven't passed they may be able to file a Chapter 13 that affords the same bankruptcy protection (the automatic stay) as a Chapter 7. A chapter 13 will allow the debtor to repay the creditors an amount that is affordable based on their budget.

If you have filed bankruptcy in the past and are now facing a wage garnishment, repossession, creditor harassment, etc you may want to seek the advice of a bankruptcy attorney. There may be a lot more protection out there than you realize.

For more bankruptcy information and information about our bankruptcy law firm, visit www.pacificbankruptcy.com. Our office practices exclusively in the area of consumer bankruptcy, representing debtors in bankruptcy in Oregon and SW Washington.

New Eugene, Oregon Bankruptcy Judge Appointed

2011-11-08T15:09:00.000-08:00

Portland attorney Thomas Renn has been appointed to serve as a judge of the U.S. Bankruptcy Court for the District of Oregon. He will fill a new judgeship left vacant when Bankruptcy Judge
Albert E. Radcliffe died suddenly on January 19, 2011.

Mr. Renn has been a solo practitioner, working as a Chapter 7 panel trustee in the Portland
division of the Oregon bankruptcy court since 2002.

Oregon Bankruptcy Exemptions

2011-11-07T16:13:00.000-08:00

Exemptions are laws that allow a debtor to protect certain assets in bankruptcy. Since Chapter 7 is a liquidation bankruptcy applying the correct exemption to a debtor's property is very important.

There are several exemptions in Oregon that are available to debtors. The most common ones are:

1) Vehicle - $3,000;
2) Equity in Homestead - $40,000 (or $50,000 for joint debtors);
3) Wages owed at time of filing, or wages held - 75%;
4) Tools of Trade - $5,000;
5) Clothing/Jewelry - $1,800;
6) Books, Pictures, Musical Instruments - $600;
7) Household Goods - $3,000;
8) Personal Injury Awards - $10,000;
9) Animals - $1,000;
10) Erisa Qualified Retirement Accounts - 100%;
11) Earned Income Tax Credits - 100%;
12) Child Support/Alimony - 100%

The law can be confusing on what exemptions to use. For example, if you file your bankruptcy in Oregon, you may not be entitled to Oregon exemptions if you haven't lived in Oregon for the last 2 years consecutively.

Some of the above exemptions may be doubled if a debtor files a joint case with their spouse.

Since exemption laws can be tricky it is smart to contact an experienced bankruptcy attorney that knows which exemptions to apply and how to properly apply them to your case.

For more information about bankruptcy in Oregon and Washington visit www.pacificbankruptcy.com

New Median Income Figures - State of Washington

2011-10-26T13:47:00.000-07:00

As of November 1, 2011 the annual gross median income figures for the State of Washington are:

Household of 1: $51,671

Household of 2: $61,919

Household of 3: $69,195

Household of 4: $80,404

Household of 5: $87,904

Household of 6: $95,404

Household of 7: $102,904

Household of 8: $110,404

If household greater than 8, add $7,500 per member per year.

The median income is important for bankruptcy purposes because it determines whether a debtor is subject to what is called the "means test". The means test is a formula that tells a debtor whether they are eligible for chapter 7 (despite being above median"), or whether they must file chapter 13 if they choose bankruptcy protection.

For more bankruptcy articles, and to learn about our Oregon and Washington bankruptcy firm visit our website at Pacific Bankruptcy

Revised Median Income Figures Effective Nov. 1, 2011 - Oregon

2011-10-24T13:10:00.000-07:00

As of November 1, 2011 the annual gross median income figures for the State of Oregon are:

Household of 1: $42,877
Household of 2: $52,316
Household of 3: $57,429
Household of 4: $66,616
Household of 5: $74,166
Household of 6: $81,616
Household of 7: $89,116
Household of 8: $96,616
If household greater than 8, add $7,500 per member per year.

The median income is important for bankruptcy purposes because it determines whether a debtor is subject to what is called the "means test". The means test is a formula that tells a debtor whether they are eligible for chapter 7 (despite being above median"), or whether they must file chapter 13 if they choose bankruptcy protection.

For more bankruptcy articles, and to learn about our Oregon and Washington bankruptcy firm visit our website at Pacific Bankruptcy

$7 more to file Bankruptcy soon. New Bankruptcy Fees as of November 1, 2011

2011-10-19T09:56:00.000-07:00

As of November 1, 2011, the following fees will be in effect for the US Bankruptcy Court

Chapter 7 Filing Fee – $306.00 (was $299)

Chapter 13 Filing Fee – $281.00 (was $274)

Adversary Proceeding Filing Fee – $293.00 (was $250)

Amendment to Petition Fee – $30.00 (was $26)

For a full list of the new fees, visit http://www.orb.uscourts.gov/Home/file_attachment/115_prending.pdf

How to stop a garnishment by filing a Bankruptcy

2011-10-18T13:39:00.000-07:00

A lot of people come to me because they have been sued by a creditor and are worried about their wages being garnished. Some of these people have wage garnishments already going on. If you are facing a garnishment you have reason to be concerned. In Oregon, a creditor can garnish up to 25% of your net pay. This can cause huge budget problems, especially for those already living paycheck to paycheck.

If you file Chapter 13 or Chapter 7 bankruptcy it will stop a garnishment in it's tracks. Keep in mind that your payroll department will likely need a bankruptcy case number at least a few days before your payday. Most of the time employers process payroll a few days, sometimes even a week before payday. Also, your attorney will need some time to prepare a bankruptcy case before it can be filed. The time to prepare a case depends on how complex your case is and also how good you are at giving your attorney what they need to prepare a chapter 7 or chapter 13 petition.

The bottom line is that if you have been sued, or are already facing a wage garnishment you need to act fast. You will want to check with your employer to see when their deadline is to get them a bankruptcy case number by to stop the next garnishment. Then, you will want to let your attorney know that date. Your attorney should be able to tell you what they need and when they need it to put a stop to a pending garnishment.

For more bankruptcy information please visit www.pacificbankruptcy.com

How redemption helps fix an upside down auto loan in Chapter 7

2011-10-13T09:12:00.000-07:00

Debtors have a few options when in comes to keeping a vehicle loan through chapter 7. The most common options are to simply keep paying on the loan and the lender accepts the payments and lets the debtor keep the car. Once the loan is paid off, the lender will have to turn over the title. This is known as the "retain and pay" option. Some lenders will not allow this and will require the second option known as "reaffirmation". A reaffirmation requires a debtor to assume personal liability on the loan after the bankruptcy by signing a new agreement. This means that if the loan defaults in the future and the car is repossessed the lender has the right to pursue the debtor for the deficiency balance, despite the bankruptcy discharge.

A lesser used option is called "redemption". Under bankruptcy law a debtor may pay the lender the value of the collateral and the lender must release the title. This can help when a car is underwater (debtor owes more than the value of the car). For example, if the debtor has a vehicle worth $10,000 and owes their bank $15,000, they are underwater on the loan by $5,000. In this example if a debtor would be able to pay the bank $10,000 in a lump sum they could "redeem" the car and get the title. This essentially strips off the negative equity and also saves the debtor lots of money in future interest that would be paid on the loan.

Obviously it is difficult for many debtors to come up with that sort of money to redeem a car. I have had clients lucky enough to borrow money from friends or family to redeem vehicles. Another option is to get a redemption loan. This would be a new loan given to the debtor to pay off the value of their car on the current loan. The debtor would then pay the new loan. This really only makes sense if the new loan pencils out to save the debtor money in the future. It can help when there is significant negative equity in the car because the new loan will be based on the value of the car, not the balance on the existing loan. One prominent company offering redemption loans is 722 Redemption Funding, a branch of US Bank. They can be found at http://www.722redemption.com/home.php

When weighing options for keeping a vehicle in chapter 7 it usually helps to discuss all facets of the decision with your attorney. A good bankruptcy attorney will be able to let you know what options makes the most sense.

For more bankruptcy information, or to learn more about our firm visit www.pacificbankruptcy.com

Can chapter 13 help save my home from foreclosure?

2011-10-11T09:58:00.000-07:00

One of the biggest tools that homeowners have to fight off a foreclosure is by filing for Chapter 13 Bankruptcy Protection.

As long as a case is filed before the actual foreclosure date and time (even if filed minutes before), the Chapter 13 bankruptcy automatic stay will put an immediate stop to the foreclosure sale.

Once the bankruptcy is filed, the homeowner will be given the opportunity to "cure" or catch-up on the past due payments over a 36-60 month period. As long as the debtor makes the current and ongoing mortgage payments, and their chapter 13 re-organization payments the home will remain safe from foreclosure.

Also by filing Chapter 13 in Oregon a homeowner may be able to eliminate their second mortgage if the value of the home is less than what is owed on the first mortgage. If there are more than two mortgages a homeowner may also be able to get rid of those.

Chapter 13 is also a good way to deal with judgment liens that may be attached on the home by debt collectors. Chapter 13 will also offer a way to catch-up on any past due property taxes.

If you are a homeowner who is facing a foreclosure it may be time to talk to an experienced Chapter 13 bankruptcy attorney in your area. For information on Oregon and SW Washington chapter 13 cases, please visit www.pacificbankruptcy.com or call us for a free consultation at 503-352-3690.

What documents will my attorney need when I am preparing to file an Oregon Bankruptcy?

2011-09-30T09:57:00.000-07:00

If you file for Chapter 7 or Chapter 13 bankruptcy in Oregon the way you present your petition is important if you want your case to proceed as smoothly as possible. Your debt information, assets, income, expenses and other financial information should be accurate and up to date.

To do this, most attorneys require certain documentation from you. These documents help the attorney make sure that the information that goes into the petition is accurate.

Common documents that may need to be provided to your Oregon bankruptcy are:

1) 7 months of your paystubs, or other income verification;

2) 2-4 years of tax returns;

3) creditor statements;

4) copy of any divorce decree that is in the past 4 years;

5) account information for any stocks, bonds, retirement accounts, etc.

6) paperwork for any lawsuits that you are a party to.

The attorney may also require additional information relevant to your case. For example, if you are a business owner they attorney may need a list of inventory, business tax returns, financial statements, etc.

If you are considering filing a chapter 7 or 13 bankruptcy in Oregon a good rule of thumb is to keep everything. Do not throw away or shred any documents that may be relevant to your financial situation.

For more bankruptcy information visit our website at www.pacificbankruptcy.com

What is a "Confirmation Hearing" and what happens at my Chapter 13 Confirmation Hearing in Oregon?

2011-09-20T09:24:00.000-07:00

Every Chapter 13 case in Oregon has what is called a "Confirmation Hearing" set. This hearing is typically set about 60-90 days after the Chapter 13 is filed.

In Oregon confirmation hearings are scheduled in the Courtroom of the Bankruptcy Judge that was assigned to the case. There are typically several hearings all set for the same time. The hearings go by very fast and the Judge calls each case, normally in order by their case number.

If all objections have been resolved between the Trustee, the Creditors and the Debtor the Judge will normally sign a Confirmation Order and enter it on the case docket that day. This means that the chapter 13 case has become binding on the creditors in the case and they are unable to object to the Debtor's Plan.

Unlike the initial 341(a) hearing (where all debtors must appear), debtors normally do not need to attend the confirmation hearing that is set in their case. Usually only the attorney needs to appear. Sometimes the Judge will Order the Debtor to appear at the hearing. This normally happens if the Debtor has filed multiple bankruptcies in the past. However, it is rare for a debtor to need to go to the confirmation hearing. If you are in Chapter 13 that is not yet confirmed and you are not sure if you need to appear for your hearing, you should contact your attorney.

If the case is not ready to be confirmed the Judge will usually set a new hearing called an "adjourned confirmation hearing" anywhere from 2-4 weeks away. This will give the parties more time to work out a settlement on any pending issues that are holding up confirmation of the plan.

For more Oregon chapter 7 and chapter 13 information visit www.pacificbankruptcy.com.

Why you should consider switching Credit Unions before filing bankruptcy.

2011-09-16T10:04:00.000-07:00

Many people prefer to do their day to day banking at local Credit Unions. They find that many times they receive more personal service, and enjoy being a member of a banking institution rather than simply a customer.

Credit Unions are usually great to bank with. But, when you file bankruptcy some debtors receive a very unwelcome surprise. Under certain circumstances a bankruptcy filing will trigger a Credit Union to put an administrative freeze on all of the debtor's accounts. This typically only happens when the debtor has loans with the Credit Union. This can be auto loans, credit cards, lines of credit or a mortgage. Under bankruptcy law you are required to list all of your creditors. This is true even if you plan to keep paying them. For example, if you have an auto loan with a Credit Union that you are current on, and plan to keep, you still need to list the Credit Union as a creditor. You will also file a statement of intent that tells the Credit Union that you plan to keep making payments on the loan.

Even if you plan to remain current and pay on a Credit Union loan, they will almost always put an administrative freeze on your accounts when they receive notice of the filing. This means that you will not be able to use your debit card or ATM card and you lose all privileges for the time being. The Credit Union may unfreeze the account, but typically will require you to reaffirm the loan with them.

When clients have Credit Union accounts and also loans there we always advise our clients to get fresh accounts set up at an institution where they owe no money to. As you can imagine, it can be a real headache if your bank account is suddenly frozen.

For more bankruptcy information and to learn more about our firm visit www.pacificbankruptcy.com

Your car loan and Chapter 13 in Oregon

2011-08-30T15:31:00.000-07:00

If you file a Chapter 13 in Oregon chances are you can restructure your car loan in your favor. For example, if you are paying a high interest rate on a car loan it can be reduced to a near prime rate in an Oregon Chapter 13 Plan.

Many times, you can lower your car payment by putting your car loan in your Chapter 13 Plan.

For some debtors, a "cram-down" is possible. This is where you restructure your car loan to pay the value of the car, rather than the loan balance. This is obviously a big advantage to the car owner who is "upside down" on their vehicle loan - ie; they owe more than what the car is worth.

By speaking with an experienced chapter 13 attorney in Oregon you can understand what options you may have to restructure your car loans by filing a Chapter 13 bankruptcy.

For more information, visit our website at www.pacificbankruptcy.com.

Will I lose my wedding ring when I file bankruptcy?

2011-08-11T13:22:00.001-07:00

Most people know that wedding rings, especially with diamonds, can cost thousands of dollars when they are purchased from the jewelry store. But the “value” of the ring on your finger is very different from what you paid to Zales.

When any property is valued for filing a bankruptcy, its current “value” is generally how much the item would sell for in a second-hand market. For most jewelry items value is set at what a pawn shop would be willing to purchase the item for. Typically pawn shops will buy jewelry at 10 – 15% of its retail value. So that $3,000 ring is actually a $300 - $400 ring.

Luckily you can’t put a price on sentimental value, so even though your wedding ring or the ring grandma gave you is invaluable in your eyes, the trustee will not think it has much value unless it is something truly exceptional. If you truly have a remarkable diamond, let your attorney know so you can discuss options for protecting your property.

For a free consultation to discuss your debt options, call us at 503-352-3690. You may also find information about our firm at www.pacificbankruptcy.com.

Speaking to a bankruptcy attorney isn't as bad as you think.

2011-06-23T07:52:00.000-07:00

As a consumer bankruptcy attorney I offer a free initial consultation to go over debt relief options with people who are struggling and overwhelmed with debt. Many times, after the consultation, potential clients tell me "wow, talking to you about bankruptcy wasn't as scary as I thought".

Many people are paralyzed by the fear of facing their debt problems and even picking up the phone to call our office is hard. Once they are able to do that and get into our office, most people find that the consultation is basically just a friendly conversation about their debt problems where we offer options that will help resolve them. As a bankruptcy attorney I am not here to judge or criticize anyone for being in debt. I am here to explain how they can best get out of debt and begin living debt free. Sometimes I suggest bankruptcy as the best option, but other times I may see other, better options. If bankruptcy is good option, I can explain the details involved in getting a case filed and explain the entire process from start to finish.

So, if you are feeling scared to talk to a professional about your debt problems just remember that making the call is usually the hardest part. If you come into one of our offices you will find a friendly face who is just there to help you out and let you know what options you have to finally deal with overwhelming debt.

For more information about our firm, and bankruptcy in general, visit www.pacificbankruptcy.com. You may also call us at 503-352-3690 (Oregon), or 360-213-2722 (Washington) to schedule a free bankruptcy consultation.

Can an Oregon Chapter 13 be switched over to a Chapter 7?

2011-04-27T06:45:00.000-07:00

At times when debtors are in Chapter 13 making payments something happens that makes it difficult to maintain their Chapter 13 payments. If a debtor suffers a loss of income while in an Oregon Chapter 13, or looses their job entirely it may not be enough to just lower their Chapter 13 payments.

Many times the case can be switched from a Chapter 13 to a Chapter 7 to relieve the debtor of the Chapter 13 payments. In bankruptcy language this is referred to as "converting". One benefit to converting a Chapter 13 to a Chapter 7 instead of dismissing and refiling a new case is the cost of the filing fee. A Chapter 7 filing fee is currently $299. The filing fee to convert a Chapter 13 in Oregon to a Chapter 7 is $25.

Typically new schedules and information must be filed in the converted chapter 7 case, so your attorney may charge you legal fees to do the conversion. But, by converting to Chapter 7 you will relieve yourself of the ongoing monthly payments in your chapter 13.

Not everyone can convert their Chapter 13 to a Chapter 7. For example, if you have enough income to continue to pay your creditors in Chapter 13, you may be prevented from going to a Chapter 7. Also, if you are in Chapter 13 because you have had a Chapter 7 filed in the 8 years before the original chapter 13 was filed, you can not convert to a Chapter 7.

There are other reasons a Debtor in an Oregon Chapter 13 may not want to convert. If you are in Chapter 13, and you are having a tough time making the payments you may want to talk to your bankruptcy attorney about converting to a Chapter 7.

For more Oregon chapter 7 and Oregon Chapter 13 bankruptcy information please visit www.pacificbankruptcy.com.

Giant Bankruptcy Myth - You can't discharge taxes in bankruptcy - FALSE!!!

2011-04-15T10:10:00.000-07:00

Given that today is April 15th, I felt that a tax post would be appropriate.

I see a lot of clients who assume that a bankruptcy won't help them with their tax debt problems. They figure that since they owe money to the State or Federal government that they will have to live with it forever. THIS IS NOT TRUE!!!

I commonly provide options to debtors to solve tax debt through Chapter 7 or Chapter 13 bankruptcy.

Many times, you can actually discharge income tax debt in a bankruptcy. To do this, the taxes must be due more than 3 years before the bankruptcy filing, the taxes must have been filed on time, or within 2 years of the bankruptcy filing, no fraud involved and the taxes must have been assessed at least 240 days before the bankruptcy is filed.

When tax debt is an issue your attorney must be very careful to understand all of the timelines and it is also a good idea to order tax transcripts to check the dates. Even if it appears the taxes are dischargeable based on the above information there are traps to be concerned about - extensions, audits, liens, offer in compromises, etc. can all have an impact on the general time rules. You should have an experienced attorney if you plan to file bankruptcy and have tax debt.

If you can't eliminate your income tax debt you can force the IRS or State into a repayment plan on your terms and stop interest and penalties from accruing. You can do this by filing a Chapter 13 bankruptcy. In Chapter 13 all non-dischargeable income tax debt must be paid in full in your plan. It is very important to have an experienced chapter 13 attorney whenever you are considering chapter 13, but especially if you have tax debt.

For more information visit www.pacificbankruptcy.com

Eliminating a Mortgage in Chapter 13 Bankruptcy

2011-04-12T10:30:00.000-07:00

In most bankruptcy cases, your home mortgage is not affected, and if you want to keep your home, you have to continue the payments. However, there is an important exception to this rule which applies in chapter 13 cases.

If your home is worth less than what you owe on your mortgages, to the point where the second or third mortgage is not secured by your home’s market value, you can remove the mortgage and never have to pay it. Here’s how it works.

Say your home is worth $350,000 and the first mortgage has a balance of $355,000. Let’s also say you have a second mortgage with a balance of $30,000. Because the home is worth only $350,000, the second mortgage is not secured by any value. That is there is no equity in your home above the first mortgage

A chapter 13 case can remove a wholly unsecured mortgage. In our example, removing the mortgage could not be done if the home were worth $370,000, because then there would be some value securing the second mortgage.

You need to file a bankruptcy court lawsuit or motion against the second mortgage holder to obtain a court order removing the second mortgage. This could involve expensive litigation over over your home’s true market value, so many people are reluctant to even try. However, given the dramatic declines in home values in the past couple of years, more of these cases are being filed. Many times, it is so clear that there is no equity to support the second or third mortgage the lender agrees to be stripped off and will not fight over the value of the home.

If you feel that you could benefit from stripping off an unsecured second or third mortgage you should seek the advice of an experienced Chapter 13 bankruptcy attorney.

How much debt to you need to have to file Bankruptcy?

2011-03-03T15:48:00.000-08:00

I get this question a lot - people want to know if there is a minimum amount of debt they need to have in order to file bankruptcy. My answer is always the same - it's all relative. What I mean is that $10,000 of credit card debt may be enough for one person to file, but not enough for someone else. It all depends on the resources that someone has to get out of debt.

And by resources, I don't just mean income. Sometimes people have assets that they can sell and then go to their creditors with a settlement. Or, maybe the only debt a person has is so old that the Statute of Limitations has run out and they can't be sued on the debt. In that case, they have legal resources available to avoid bankruptcy to handle their debt.

More often than not the decision to file bankruptcy will boil down to a person's income and expenses though. If you find yourself able to only pay your basic living expenses off of your net monthly pay and there is nothing left to pay on your debt, it may be time to talk to a bankruptcy attorney. This could be true for someone who makes $30,000 per year, but just as true for someone who makes $150,000 per year. It all depends on their amount of debt, and their monthly living expenses. Thus, the question of how much debt one needs to file bankruptcy is not a clear cut answer - it is relative.

For more Oregon and Washington bankruptcy information, or to learn more about our firm visit www.pacificbankruptcy.com. We practice Chapter 7 and Chapter 13 consumer bankruptcy and have helped thousands of people realize their dreams of living debt free.

Median Income Figures for the State of Oregon

2011-03-01T18:09:00.000-08:00

Currently, the annual gross median income figures for the State of Oregon are:

1 Person: $43,986;

2 People: $54,656;

3 People $59,546;

4 People $71,593;

5 People: $79,093;

6 People: $86,593;

7 People: $94,093;

8 People: $101,593

Each Additional, add: $7,500.

For bankruptcy filers being above this annual gross income figure may subject you to the "means test". The means test will determine if you are eligible for Chapter 7 bankruptcy. It will also play a role in what your estimated chapter 13 payment would be if you chose to file chapter 13.

For more means testing information you can visit the US Trustee's site at: http://www.justice.gov/ust/eo/bapcpa/20101101/meanstesting.htm.

For bankruptcy information in Oregon and Washington and to learn more about our firm, visit www.pacificbankruptcy.com.

Cars, Cars, Cars......what happens to my car when I file bankruptcy?

2011-02-21T10:48:00.000-08:00

As a chapter 7 and 13 bankruptcy attorney one of the most common concerns that I hear from potential clients relates to their cars.

In bankruptcy several things can happen to your car depending on your situation. What happens to your car depends on several factors including:

is there a loan against the car?
if there is a loan, are the payments current?
what is the value of your car?
what is the loan balance, if any?
what chapter of bankruptcy will you file?
do you want to keep the car? if so, can you afford it?
how long ago did you finance the vehicle?

As you can see, many factors go into answering the common question of "what happens to my car when I file bankruptcy?"

Under most circumstances, the general rule is if you want to keep your car, and can afford to keep it, you will keep your car if you file bankruptcy.

In Chapter 13 many times car loans can be restructured. You may even have a lower chapter 13 payment than what your current car payment is. If you financed your car over 2.5 years ago, or if your current loan is a refinance, or other non purchase money loan, you may qualify to do a "cram down" on the loan. This means that you restructure the car loan in a chapter 13 based on the value of the vehicle, not what you owe on the vehicle.

In Chapter 7 many lenders allow you to keep your car loan after bankruptcy as long as you remain current. Some lenders will require a debtor to "reaffirm" their car loan in order to keep it. A reaffirmation is a new agreement after filing binding the debtor to the loan. A reaffirmation is a serious decision and a debtor should consult carefully with their attorney before agreeing to sign it.

If your car does not have a loan on it you may keep it in a chapter 13 bankruptcy. If you file chapter 7 you may keep the car if the value is equal to, or less than what the applicable exemption is for the asset. If the car is in danger of being liquidated by a chapter 7 trustee a good attorney should be able to tell you well before the case is filed that it is an issue. Even if the car value is over th exemption you may be able to work out an agreement with the chapter 7 trustee to keep the car and pay the trustee the non-exempt equity.

This information is a very general overview of cars and bankruptcy. For more information based on your specific situation you should consult a qualified bankruptcy attorney. More information about our firm may be found at www.pacificbankruptcy.com

Do I lose my home automatically if I file Bankruptcy in Oregon?

2011-01-22T06:55:00.000-08:00

Many homeowners fear that if they file chapter 7 or chapter 13 bankruptcy they will automatically lose their home. The fact is that is is very rare for a home to be lost in a bankruptcy. If you are a homeowner, and want to keep your home and file bankruptcy, chances are you will be able to if you are able to maintain your mortgage payments.

In Chapter 7 some assets can be liquidated if they are not "exempt" or protected under law. In Oregon, the equity in a home is exempt up to $40,000 for an individual and $50,000 for a couple (or, "joint" bankruptcy). So, if the Trustee does sale your home they need to pay you your exemption amount after closing. The truth is, you probably need quite a bit of equity more than the exemption amount because if a Trustee in chapter 7 liquidates your home, they need to pay for the cost of sale (around 5-8%), pay the debtor their exemption amount ($40,000 - $50,000) and have enough leftover to pay the creditors a meaningful amount. Given the current housing market it is fairly rare for homeowners to have too much equity in their home to lose in Chapter 7.

If you are uncertain about your home value a good place to start is www.zillow.com. This is a website that looks at comparable homes in your area that are on the market and have sold and tries to give an estimate of your home's value. Of course, this won't always be truly accurate, but it is a good place to start when trying to determine the value of your home. Normally, it is fairly clear on whether the home is in danger of being liquidated in a Chapter 7. Many homes right now are "upside down" meaning that the value of the home is less that what is owed against the home. However, if the home has equity that approaches the exemption amounts it is a good idea to get an appraisal on the home before filing the Chapter 7 bankruptcy.

If a home has too much equity and would be at risk of being liquidated in a Chapter 7, a homeowner can still get bankruptcy protection while keeping the home by filing Chapter 13 bankruptcy. Since Chapter 13 is not a liquidation bankruptcy, rather a reorganization, homes are not sold by the Chapter 13 Trustee. There are several complicated issues to be aware of in Chapter 13 and it is best to discuss a potential Chapter 13 with a qualified attorney in your area.

For more Chapter 7 and Chapter 13 Bankruptcy information in Oregon and SW Washington visit www.pacificbankruptcy.com

New Northeast Portland Office Location - Hollywood District

2010-11-30T12:47:00.000-08:00

Hackett & Harris is pleased to announce the opening of a new office location in Northeast Portland. We are currently taking appointments for free bankruptcy consultations in this new location. The office is right off of HWY 84 in the heart of the Hollywood District.

The address for the new office is: 3913 NE Hancock #100 Portland, OR 97212

For a Map and Directions visit: http://www.pacificbankruptcy.com/contact.html#neportland

If you would like to set up a free consultation at this office, or at another location, please call: 503-352-3690. We also have offices in Beaverton, SE Portland, Hillsboro and Vancouver, WA. For more bankruptcy information, including free bankruptcy articles visit: www.pacificbankruptcy.com

When bankruptcy is the best of bad options. Q & A With Personal Financial Columnist Liz Weston

2010-10-30T09:45:00.000-07:00

Personal Financial Columnist Liz Weston explains that bankruptcy is worth looking into if you have lots of unsecured debt and need relief.

Click Here for Full Column:
When bankruptcy is the best of bad options

For Oregon and Washington Chapter 7 and Chapter 13 Bankruptcy information go to: www.pacificbankruptcy.com.

Big Chicago based Bankruptcy firm under attack - Biggest doesn't always mean best.

2010-10-22T12:20:00.000-07:00

A recent article and news story surfaced regarding some horror stories about the national bankruptcy firm known as Legal Helpers.

http://chicago.cbslocal.com/2010/10/20/law-firm-under-fire-for-mistakes-made-on-bankruptcy-petitions/

CBS Chicago reports that Legal Helper clients noticed errors on their bankruptcy schedules that were not fixed before the documents were filed with the Court. Also, one woman who filed Chapter 13 Bankruptcy claims that the Firm failed to perform due diligence relating to the value of her home before she filed and this cost her thousands of dollars and 4 years in a bankruptcy that was ultimately dismissed.

The article illustrates just how important it is to find a qualifed attorney if you are considering filing for bankruptcy. Try to get referrals from trusted friends or co-workers if that is possible. If you can't do some research online and go meet some attorneys. Many bankruptcy attorneys, including our firm offer free initial bankruptcy consultations to discuss your options. You can find more information about our firm and about Oregon and Washington Chapter 7 and Chapter 13 bankruptcy at www.pacificbankruptcy.com.

I have judgments against me - will they go away if I file bankruptcy?

2010-09-25T15:31:00.000-07:00

If debt goes unpaid and collectors are after you for a while, often you will get judgments entered against you. These judgments allow the creditor or debt collector to garnish wages, garnish bank accounts and attach liens against your home.

Many people think that once they have a legal judgment against them that they can not file bankruptcy on that debt. This is completely untrue. You can discharge debts that have judgments attached to them. Once the bankruptcy is filed you can stop the judgment creditor from garnishing your wages, bank accoutns or taking your assets.

Although judgment debts can be discharged in bankruptcy, debtors who are also homeowners should be careful when filing bankruptcy. Although the judgment debt will be discharged with a bankruptcy, any liens that attached to the debtor's home will stick unless they are avoided. So, homeowners with judgments should seek an experienced attorney to represent them in the bankruptcy. The bankruptcy attorney can file motions in most cases to avoid judgment liens on the home. If this is not done the judgment lien will remain stuck against the home, even years later. It is very important to avoid these judgment liens while the bankruptcy is still open. Our firm has experience avoiding these type of liens in both Chapter 7 and Chapter 13 bankruptcy cases. For more information about us, visit http://www.pacificbankruptcy.com/

New Oregon Chapter 13 Bankruptcy Trustee

2010-08-22T07:44:00.000-07:00

Starting June 1, 2010, Wayne Godare replaced Brian Lynch as the Chapter 13 bankruptcy trustee for the District of Oregon, Portland Division.

The chapter 13 Trustee's job includes holding the meeting of creditors for all debtors who file Chapter 13 in the Portland, Oregon division, accepting and distributing payments in chapter 13 cases and handling the overall administration of Oregon Chapter 13 cases for the Portland division.

If Mr. Godare is the Trustee in your case and you need to make a payment, send to:

Wayne Godare
Chapter 13 Trustee
P.O. Box 420
Memphis, TN 38101-0420

Effective June 1, 2010, please direct all correspondence to Mr. Godare. There are no changes to the trustee’s address, phone number, and website. Correspondence should be directed to the Portland address below.

Correspondence Address:
Wayne Godare
1300 SW 5th Ave
Suite 1700
Portland, OR 97201

Phone (503) 972-6300 Fax: (503) 972-6313 Web: http://www.portland13.com/
Office Hours: 9:00 am to 12: 00 pm and100 pm to 4:00 pm

If you have not filed bankruptcy and are seeking Oregon Chapter 7 and Oregon Chapter 13 bankruptcy information, visit http://www.pacificbankruptcy.com/

Is a Chapter 13 Plan Payment "Set in Stone"

2010-08-18T09:04:00.000-07:00

Generally, Chapter 13 Bankruptcy cases in Oregon and Washington last 3-5 years. Many of our chapter 13 clients ask "what happens if my financial situation changes during that time?". This is a good question. Luckily, chapter 13 can be flexible. The bankruptcy laws allow a plan to be modified. So, if a debtors income has gone down it may be possible to reduce the plan payment to account for that change. Conversely, if the debtor's income has gone up during the Chapter 13 plan the Trustee or a creditor may argue that the payment should be increased because the debtor can afford a higher payment.

If there is a significant loss of income, or a substantial change the debtor may be eligible for a hardship discharge, or a possible conversion to Chapter 7 to get their discharge sooner.

A good Chapter 13 attorney will be able to guide you through the plan and make sure that your payment remain affordable. The sooner you inform your attorney about any financial changes during the bankruptcy the easier it will be to resolve those issues and keep you on the right track.

For more information visit www.pacificbankruptcy.com.

Portland Oregon Chapter 13 Meeting of Creditors

2010-08-13T09:19:00.001-07:00

For every chapter 13 Case that is filed in the Portland area an initial hearing is set. This hearing is known as a "meeting of creditors" and chapter 13 debtors are required to attend.

For Chapter 13 cases filed in Portland and the surrounding areas the hearings are typically held about 6 weeks from the time the case is filed.

These hearings are located at the Chapter 13 Trustee's office at: 1300 SW 5th Ave
Suite 1700 Portland, OR 97201.

Although the debtors are sworn in and asked questions under oath, this is not held in a Court of Law. Debtors are free to wear normal casual clothing and will not appear in front of a Bankruptcy Judge.

For more information about Portland, Oregon Chapter 13 and Chapter 7 please visit www.pacificbankruptcy.com.

Overview of Chapter 13 Bankruptcy in Oregon

2010-07-23T09:39:00.001-07:00

Chapter 13 bankruptcy is essentially a reorganization of a person's debt. When someone goes into chapter 13 they must have regular income sufficient to fund a plan. Plan payments are typically made on a monthly basis to a Chapter 13 Trustee and the Trustee will distribute the money to a person's creditors pursuant to bankruptcy laws and the actual plan filed by the Debtor.

It is rare that a debtor in chapter 13 pays back all of his or her debt. Many times, the debtor will be paying taxes, car loans, home arrears and their credit cards, collection agencies and medical debt creditors receive very little, or nothing during the bankruptcy.

The amount of the monthly payment that is required is dependent on several factors - 1) income and living expenses, 2) amount of secured debt, 3) amount of any tax debt or other priority debt that needs to be paid, and 4) amount of non-exempt assets the debtor has at the time of filing.

A qualified chapter 13 bankruptcy attorney will be able to gather relevant information from a person and construct a plan that meets all necessary requirements.

Chapter 13 plans typically last 3-5 years and may have some benefits that Chapter 7 cannot offer.

If you are interested in learning more about chapter 13 or chapter 7 bankruptcy the first step is to visit our firm atwww.pacificbankruptcy.com. We offer free initial consultations to discuss your specific situation with an attorney.

How long will my Oregon Bankruptcy last?

2010-07-02T18:09:00.000-07:00

Understandably a lot of people are concerned with how long they will be in bankruptcy if they file. For a typical chapter 7 case the answer is about 3-4 months from filing until it is complete and discharged. During that time the debtor needs to do a few important things: 1) complete a financial management course (usually done online), 2) attend a "meeting of creditors" and 3) keep their attorney informed of any and all changes to their situation, address, etc.

If a debtor files a chapter 13 in Oregon the case is open for a much longer period of time because there is a reorganization plan involved. As long as the debtor is making their chapter 13 payments they will receive protection from all of their pre-bankruptcy creditors while in Chapter 13. Chapter 13's generally last between 3 and 5 years. An experienced Oregon Chapter 13 attorney should be able to tell you before filing how long your plan is likely to last.

For more Oregon and Washington bankruptcy information please visit www.pacificbankruptcy.com.

Filing Bankruptcy Without an Attorney - Beware of the Pitfalls!

2010-06-28T14:16:00.000-07:00

Debtors can elect to represent themselves when they file a Chapter 7 or Chapter 13 bankruptcy in Oregon. This is generally referred as filing "pro se".

Today I was in a hearing where a debtor who filed pro se encountered a tragedy that could have easily been avoided. She had hired a petition preparer to fill out her documents, but she did not have an attorney on her case. The Trustee asked if she had ever filed bankruptcy before, and she said "yes, in 2002". The Trustee pulled up her prior filing and discovered that she had filed her current case 2 weeks too soon to receive a discharge. He told the poor woman that he was reporting the case to be dismissed and she would have to start from scratch. Not only will this woman have to complete the difficult paperwork all over again, she will also have to pay another court filing fee. She will also have to spend many hours in her new case, along with a lot of energy. Had she hired a competent attorney the case would have been filed a couple weeks later and she would receive a discharge and go through the process once. She may have saved a few dollars by hiring a petition preparer, but the results were disastrous.

There are many other pitfalls in the bankruptcy process. Hiring an experienced Oregon bankruptcy attorney will ensure that the case is handled properly and you can rest assured that it will proceed smoothly and you will get the results you deserve.

For more information about our bankruptcy firm, visitwww.pacificbankruptcy.com

New Vancouver Washington Bankruptcy Office Location

2010-05-10T11:04:00.000-07:00

We have recently moved our Vancouver, Washington bankruptcy branch office to a more convenient location. Our current Vancouver office is located at:

Hackett & Harris
4400 NE 77th Ave., Suite 275
Vancouver, Washington 98662

To Schedule a free Washington bankruptcy consultation please call: 360-213-2722.

How are Chapter 13 Payments made in Oregon?

2010-05-06T07:18:00.000-07:00

When someone files for Chapter 13 bankruptcy protection in Oregon there is a monthly payment that is made to a bankruptcy Trustee. One of the biggest jobs for a Chapter 13 Trustee is to distribute this money to the creditors in the case. The first payment from the Debtor is due 30 days after the case is filed.

In Oregon, the Courts now require that payments are made by a "wage order". A wage order is basically a directive to the debtor's employer to withhold the payments from the debtor's paychecks and forward the funds on to the Trustee. It is similar to a garnishment - a court order to withhold funds from an employee and forward them to a 3rd party.

A debtor can ask the Trustee to waive the wage order requirement. The most common reason for the wage order to be waived is if the debtor is self-employed. If the debtor is employed it is very difficult to get the wage order waived. However, if the debtor can show that if their employer knew that they filed bankruptcy it would adversely affect their employment a wage order may be waived. It is not enough that the debtor be embarrassed about the employer knowing - they must prove that it could actually affect their job. A common example is if the debtor/employee handles money for the company, or the debtor/employee was recently hired.

If the wage order requirement is waved, then the Debtor will mail in monthly payments to the Trustee each month by money order or cashier's check.

Wage orders used to be voluntary in Oregon Chapter 13 cases. But, statistics showed that debtors with wage orders had a much better chance of completing their case than those who were mailing them in.

Many of my clients really like having the wage order in place because they don't have to worry about missing a payment. They simply need to keep an eye on their paycheck to make sure the chapter 13 payments are coming out of their checks.

Updated Oregon Median Family Income Figures

2010-03-16T13:23:00.000-07:00

As of March 15, 2010 there are new median income figures to determine whether a debtor in bankruptcy will be subject to the means test. The new figures, as of March 15, 2010 are:

$42,344 for a household of 1;
$55,820for a household of 2;
$62,608 for a household of 3;
$72,408 for a household of 4;
$79,308 for a household of 5;
$86,208 for a household of 6;
$93,108 for a household of 7;
$100,008 for a household of 8;
If your household is larger than 8, add an additional $6,900 for each member over and above $100,008

If a debtors family income falls above these figures, then they will need to complete a means test to determine if they are eligible for a Chapter 7 bankruptcy in Oregon.

For more bankruptcy information visit us at www.pacificbankruptcy.com

How the Court calculates your income for the Chapter 7 Means Test in Oregon

2010-02-24T15:09:00.000-08:00

A major part of the bankruptcy reform laws in 2005 was the implementation of the "means test" which determines whether a debtor is able to qualify for chapter 7. The starting point of the means test is to determine your "current monthly income", or "CMI". If your CMI is above the median for the state you file your bankruptcy in you will be subject to the entire means test to determine if you are eligible for chapter 7.

Currently, the median income in Oregon is:

$42,495 for a household of 1;
$56,019 for a household of 2;
$62,832 for a household of 3;
$72,667 for a household of 4;
$79,567 for a household of 5;
$86,467 for a household of 6;
$93,367 for a household of 7;
$100,267 for a household of 8;
If your household is larger than 8, add an additional $6,900 for each member over and above $100,267.

An important note is that household income is based on a GROSS income amount. That is, the amount you earn before any taxes or other deductions are taken out of your pay.

To arrive at your "CMI" amount, you take your total gross income for the prior 6 months before you file, total it up, and multiply by 2.

The month you file in does not count for the means test, it begins with the month before you file and goes back 6 months. For example if your filing date is going to be in February, the 6 months that would count would be August through January. If you file your bankruptcy in August, the months that count are February through July.

Wages are not the only income that counts in this calculation. Any source of income counts, including gifts and non-taxable income.

Remember that just because your income is above the median you can still qualify for chapter 7 in Oregon. We have several clients who have income above the median for their household size and are able to pass the means test and proceed with a Chapter 7.

For more bankruptcy information and also to learn more about our firm visit www.pacificbankruptcy.com.

Keeping your Home in an Oregon Bankruptcy

2010-02-11T11:15:00.000-08:00

Author: Christy Dickson, associate attorney at Hackett & Harris LLC

Many of our clients have questions about how bankruptcy will affect their homes and mortgages. This is not intended to be legal advice, but should serve as information so you can talk to your attorney about how bankruptcy will affect your home and your mortgages.

This article has a lot of important information for people who want to keep their home during and after a bankruptcy is filed. Click on link below to access the full article.

Making Payments

If you want to remain in your house you must make your payments each month! All loans against the house must be paid, including first mortgages, second or third mortgages, home equity lines of credit, or any other loan that is secured against your real estate. If you are behind on any of your loans, you will need to work with the lender to see if there are options for getting caught up such as a modification. After your bankruptcy is filed your payments are referred to as “voluntary payments.”

After your bankruptcy is filed you might stop receiving statements from your mortgage lender. Even if you don’t receive a statement your payment is still due and you must make your payment. If your payments are automatically taken out by your lender, this might also stop. Check to see if the lender has taken their payment; if they have not, you are responsible for sending in the correct amount.

Taxes and Insurance

Your insurance and taxes need to be current. If you fall behind on either of these your mortgage agreement may allow your lender to pay these for you and then increase your monthly payments. Even though we may have listed your past due property taxes in your bankruptcy petition, this debt does not get discharged and you will need to pay it if you want to stay in your house.

Modifications

Many people are taking advantage of mortgage modifications right now. Please let your attorney know if you are trying to modify your mortgage, especially if you are in your trial period. Filing your bankruptcy in the middle of a trial period can sometimes cause your lender to void the modification and you may have to start the process over.

Communicating with your lender

After your bankruptcy is filed you may notice that your lender will not talk to you. Please let your attorney know if you need to talk to your lender so we can send a letter or permission form.

Do I still own my house after the bankruptcy?

Yes, you are still considered the owner of the property after the bankruptcy. You can stay in your house, you can sell your house, you can even rent it out. None of these rights have changed.

What does it mean that my home loan is “discharged in bankruptcy”?

The term “discharge” simply means that a court order is in place that stops your lender from being able to come back in the future and ask for any money on the loan if there was a foreclosure. The discharge doesn’t make the loan disappear; it simply changes the rights a creditor has against you. The loan still exists and the payments you make will be counted towards the amount you owe.

My home loan is not showing up on my credit report

This is one of the long term effects of filing bankruptcy. Your home loan will show on your credit report as “discharged in bankruptcy.’ Even though you are making on-time payments each month, these payments will not be counted by the credit bureaus as on-time payments for the purposes of determining your credit score.

Can I refinance my home?

If you are careful to take steps to rebuild your credit and you have the opportunity to refinance, then you can do so after your bankruptcy. Your current lender would be happy to be paid off. The new loan will show up on your credit just like any new loan would after the bankruptcy. Realistically it will take a few years before your credit has been repaired enough to qualify for another mortgage.

My lender increased my house payment after I filed bankruptcy. Can they DO that?

In some instances, yes. Even though the loan is “discharged”, both you and the lender still have abide by all of the terms in your mortgage agreement. If you have been late on payments, or have not been keeping your insurance current, the terms of your mortgage agreement may allow your lender to do this. Please look at your mortgage agreement if you have questions about its terms.

My lender wants me to reaffirm my mortgage/ I want to reaffirm my mortgage

Each state has its own laws regarding how bankruptcy affects mortgage loans and the ability to reaffirm. In Oregon, homeowners who file bankruptcy have state law protection that stops lenders from foreclosing simply because a bankruptcy has been filed. If you are late on your payments or have otherwise breached your mortgage agreement, then your lender may have the right to foreclose under those circumstances. As long as your payments are on time and you are meeting the terms of your mortgage agreement, then your lender may not foreclose on your house. Because each state has its own laws about reaffirmation, lenders often just send out reaffirmation agreements to everyone.

Many people want to reaffirm their mortgages after bankruptcy because they have heard that reaffirmed debts will help rebuild their credit. It is true the reaffirmed debts can help rebuild credit, but the judges in Oregon generally will not sign a reaffirmation on a mortgage loan. Their reasoning is that if you are current, then you are protected by the state law, if you are not current, then they would never agree to re-bind you to the debt if you are struggling to pay it.

For more Oregon bankruptcy information and to learn about our firm visit www.pacificbankruptcy.com

The power of the Automatic Stay in Bankruptcy

2010-02-05T10:57:00.000-08:00

One of the most fundamental and powerful protections when a person files bankruptcy is known as the Automatic Stay. The automatic stay is essentially a giant STOP sign that prohibits nearly all collection action against the debtor or the debtor's property.

Whether you file Chapter 7 or Chapter 13 bankruptcy the automatic stay immediately goes into effect at the time of filing.

The automatic stay prohibits certain actions including collection calls, repossessions, ongoing garnishments, foreclosure sales and lawsuits.

Once the creditor has actual notice that a bankruptcy has been filed they are subject to the automatic stay. If a creditor violates the automatic stay they may be liable for damages. When a creditor violates the automatic stay, and fails to remedy the problem sometimes it is necessary to file an adversary proceeding against the creditor in bankruptcy Court. Our firm has successfully held creditors who violate the automatic stay liable for their actions.

For more bankruptcy information visit us at www.paficicbankruptcy.com.

How do you find a Chapter 7 or Chapter 13 bankruptcy attorney in Oregon?

2010-02-03T15:53:00.000-08:00

Many people know that it may be a good idea to speak to an attorney regarding their debt relief options, including bankruptcy but don't know where to start. There are a lot of good attorneys out there, but you will want to find one that can help your specific situation and has experience in the matter that you want resolved.

Here are some ideas on how you can go about finding an attorney to help with a bankruptcy:

Ask family or friends for a bankruptcy attorney referral. If you know someone who has filed bankruptcy in Oregon ask them about their experience with their attorney. Hopefully they had a good experience and can recommend their attorney to handle your case.

Ask a family member or friend if they know any other attorneys that do other areas of the law. Often times good attorneys are networked with other attorneys in specific areas. So, if your family had a good business or family law attorney maybe that attorney can point you in the right direction to a good bankruptcy attorney in your area.

Do some online research. Many attorneys can be found on the internet and have bankruptcy related material on their websites. Lots of attorneys post bio's on their sites so you can get a feel for the attorney's experience, etc.

Check with your employer. Some larger employers have referral programs for employees who need legal assistance and may be able to provide a referral for you.

Check with the Oregon State Bar. The Oregon State Bar has an attorney referral program, so you can contact the bar to explain your situation and get a referral that way. The Oregon State Bar is found online at www.osbar.org.

Once you have found an attorney who can help with your specific problem you will want to schedule a consultation with the attorney to go over your specific issues and legal problems. Many times you will know by meeting with an attorney if you will feel comfortable working with this attorney on your bankruptcy matter. If you don't, you may want to look for another attorney or two to get a second or third opinion.

For more information about our bankruptcy firm, visit our website at www.pacificbankruptcy.com We offer free initial consultations and practice exclusively in the area of Chapter 7 and Chapter 13 consumer bankruptcy.

Do I have to pay off all of my creditors if I file a Chapter 13 bankruptcy in Oregon?

2010-01-22T06:59:00.000-08:00

When clients come in to my office and I discuss Chapter 13 a common question I get is "if I file Chapter 13 I have to pay everyone back, right?" The short answer to this question is "probably not."

Our firm files a lot of Chapter 13 cases in Oregon. It is fairly rare that our Chapter 13 clients are required to pay back all of their debt in Chapter 13. There are several factors that go into calculating a monthly Chapter 13 payment, including: a debtor's income, expenses, amount of non-exempt assets, amount of secured and priority debt, and many more.

In some cases a client can reorganize secured debt and at the same time get protection from unsecured creditors. I commonly have clients who enter into Chapter 13 and are able to propose a payment that is less than what their current car payments are. And, the car loans can be restructured and be included in the Chapter 13.

For example, a client could have a car payment of $500/mo and also have $30,000 in credit card debt. It may be possible for this person to file Chapter 13 and restructure the car loan and end up paying $400/mo in their case and be able to keep the car and get protection from the credit card debt.

If you are experiencing overwhelming debt, and could possibly benefit from a Chapter 13 you should seek the advice of an experienced Chapter 13 attorney.

More information about Chapter 13 in Oregon and bankruptcy in general can be found at our website: www.pacificbankruptcy.com.

Is there such a thing as a "Medical Bankruptcy" in Oregon?

2010-01-18T11:59:00.000-08:00

I get a lot of people asking me if there is a specific sort of bankruptcy to deal with medical debt. Although medical debt is a very common debt to include and discharge in a bankruptcy, there is not such thing as a "medical bankruptcy". Generally, medical debt is treated as a general unsecured debt in both Chapter 7 and Chapter 13 bankruptcy. This means that a debtor will be able to discharge the debt, just as if it were a credit card, or other typical consumer debt.

I see a lot of clients who have been carrying the enormous burden of medical debt. When a consumer is unable to pay a medical provider the debt is usually transferred to a third party debt collector. These debt collectors can be very aggressive and they don't really care why someone has the debt - they simply get paid to collect regardless of the source. Many times the debt collector will file a lawsuit to collect on medical debt. Once a lawsuit is filed it is very hard to fight it unless a debtor can show that the original debt belongs to someone else. If the collector prevails in the lawsuit, or the debtor simply does not respond to the suit, the collector will get a judgment against the debtor. Once a judgment is in place, the debtor can have his or her wages and bank accounts garnished. Also, a judgment will typically place an automatic lien on any real property owned by the debtor. In Oregon a collector with a judgment can garnish 25% of a debtor's net pay.

Many people come into my office because they are being garnished by a collector for medical debt. I would estimate that 40 - 50% of my clients have some medical debt and sometimes this is the only debt they have. Even though there is no such thing as a "medical bankruptcy" a Chapter 7 or a Chapter 13 bankruptcy is a viable way to eliminate medical debt.

-Ryan

Do you have to go to Court if you file Bankruptcy in Oregon?

2010-01-15T06:16:00.001-08:00

As a bankruptcy attorney I get this question a lot. Bankruptcy cases are processed through the Federal Court system, so it would make sense that debtors who file need to go to "Court". However, normally a debtor in bankruptcy needs only to attend a meeting with a Trustee (also called a "hearing"). The Trustee is not a Judge. I've often heard debtors at their meeting respond to a question as "Yes, your honor". The Trustees are quick to remind the debtors that they aren't wearing a robe, and are not one of the Bankruptcy Judges.

The meeting with the Trustee is called the "341 Meeting of Creditors". The reason is has the "341" in the title is because it is the section of the bankruptcy code that requires this hearing. In Oregon, when an attorney represents a debtor in either a Chapter 7 or Chapter 13 bankruptcy the attorney is required to be present with the Debtor at the hearing.

At this meeting, the Trustee will swear the debtor in, check his or her photo ID and proof of social security number and proceed to ask a handful of questions. There are several different bankruptcy trustees in Oregon and they all have a different style, but their questions are all similar. A good attorney should be able to let the client know ahead of time what the Trustee will be interested in talking about the most in the specific case.

These hearings typically last 5 to 10 minutes in most cases. Despite my assurances that the meeting will be very easy an uneventful, many of my clients get nervous about this meeting. It is natural to be nervous because most people haven't had to do this before and are not sure what to expect. I usually advise my clients to show up a little early to their hearing so they can listen to a couple of them. This gives them an idea on what to expect. The most common comment I get from my clients after this hearing is "that was it" or "wow, that was easier than I thought".

This hearing occurs approximately 4-5 weeks after a case is filed. My office has a strict system in place to get any documents the Trustee needs as soon as possible after the case is filed and well before the hearing. This really helps the hearing go smoothly because the Trustee has had a chance to review everything well before the hearing.

For more information and frequently asked questions feel free to visit our Oregon Bankruptcy Firm's website at: www.pacificbankruptcy.com

Take Care,

Ryan