Oregon Bankruptcy Lawyer Blog

I hear a lot of questions as a bankruptcy lawyer in Portland Oregon...One of the most common questions I hear when I meet with prospective clients is "when will I be able to borrow again?". Its actually a reasonable question and I understand why people ask; but after being in this practice as long as I have been the answer to me is pretty obvious...Who Cares!

Its not that its a bad question...but our culture has conditioned us so much to rely on and base our worth on what we can borrow that it frustrating for me to hear folks who are in debt trouble asking when they can take more debt. I find that its my job as a lawyer and counseling to help my clients understand that the better question is: "After this bankruptcy will I need credit again?". The answer to that is probably not.

Continue reading "Post Bankruptcy and New Credit: Do you really need to ask?" »

One of the most common questions I hear in my bankruptcy practice is "will I have to give up my car"; to which I respond with the most common lawyer answer "it depends". It will depend on which Chapter your file, Chapter 7 or Chapter 13. It will depend on how much the car is worth on the open market. It will also depend on how much you owe on the car. I'll try today to shed a little light on the basics so you understand how the bankruptcy court will view your vehicle if you choose to file.
Basically under a Chapter 7 (the more common filing) the key to keeping your car is value..i.e. how much is the car worth. In Oregon bankruptcy court a single person can have a car that's 'worth' a little over two thousand dollars. "What's my car worth" you ask? Good question. The trustee's can use a number of valuation methods. Most common that I see here in the Portland Oregon meetings are either kelly blue book or NADA guides. These give a decent valuation for most vehicles; you can also use black book value which is a compilation of local auction values..I like using this in my practice because I feel it gives the best true value for the car in the current marketplace. So once you have your value then what?

Continue reading "Bankruptcy and your car: Will you need to ride a bike? " »

In my practice as a Portland Bankruptcy lawyer I have been asked by many recent clients to explain "cramdown" in relation to their homes and mortgages and whether a bankruptcy filing can help. "Well" I have to tell them, right now there is no cramdown for your homes in a Chapter 13 Bankruptcy proceeding...but just wait Congress is working on it. Whether that means it will be put to a vote tomorrow, next week or next month is any one's guess but if it does pass thousands of Oregon homeowners may be considering a Bankruptcy filing in the very near future.

Continue reading "Chapter 13 Bankruptcy and Cramdown Legislation" »

In a Chapter 7 bankruptcy it is possible that the trustee will seize and sell your home to pay off part or all of your creditors. As a bankruptcy attorney in Portland Oregon its my job to make sure my clients understand if this is a possibility before any filing is made and to do whatever the bankruptcy code allows to protect your home.

My clients homes are probably the number one asset they are worried about protecting. The key to seeing if your home will be protected and not subject to being turned over to the trustee comes down to value. Much like cars; if there is equity in the home than its possible that it will go. How much equity are you allowed depends on a variety of factors that you should discuss directly with your bankruptcy attorney.
In general however for a single person you can retain a home that has about 30,000 is equity value after subtracting reasonable sale costs and expenses. If you are married the amount runs up to about 36,000. If you are under this exemption amount then you should be able to keep your home as long as you continue to make your payments.

If you are over then you should discuss this situation directly with a lawyer; as there are methods to retain the home. You may have to pay the trustee some money but you could stay in your home. Obviously in today's market it may make sense to turn the home over and let it go into foreclosure and these should also be discussed with your bankruptcy attorney directly.
To recap though; for most of my bankruptcy clients I find that showing that their home has little to no equity is not a problem and hence if they are able to meet the payment obligations of the mortgage they will be able to stay in their home during and after the bankruptcy proceedings.

Have a great day-