Oregon Bankruptcy Lawyer Blog

In Portland the rate of foreclosure sseems to be increasing all the time. Along with this there is a resultant rise in the number of bankruptcy filings I see coming through my law office. In consulting with my clients one worry I find as a lawyer they have is; where will they be able to live after the foreclosure is complete.

Their concern revolves around the issue of having a wrecked credit score and the possible inability to rent another house or apartment for their family. While my evidence in anecdotal at best; what I've seen in the Portland Oregon rental market is that this typically isn't as big a problem as my clients might think. It's true that most landlords, large and small, require a credit check and after a bankruptcy and foreclosure my clients FICO score will probably be down in the low 500's about as bad as it can be. For the large corporation run complexes this will likely disqualify you from renting as they typically run off of formulas and scores and don't look too closely at an individual's story.

If you to a look at smaller places and single owner rentals I've seen the market really open up. If you have a stable job, some decent references and a good story then small mom and pop landlords are likely to rent to you even with a low FICO...i.e. you are not dead in the water from the beginning. What you will need to have in many cases is a larger than normal deposit; I've seen 2x and 3x the normal amount. If you think this situation may apply to you then you should consult with your bankruptcy attorney very early in the process so they can counsel you on the proper way to plan for these requirements and may even have leads to places where their own clients have found success.

Have a joyous day

Its important this time a year to talk about filing your taxes and its possible effect on your bankruptcy. As a Chapter 7 bankruptcy lawyer I see my practice get busy around Feb and March every year and as part of that I also see more issues with clients tax refunds.

In many cases if a client files their bankruptcy petition before the refund has been issued then that refund in its entirety can become property of the bankruptcy estate. If you wait to file your return and haven't filed it before sending in your bankruptcy petition the U.S. Trustee may hold the 341 hearing open until your tax refund has been filed and any refund amount determined. Either way you may loose that refund.

Its very important where you think you may be entitled to a refund to talk with your bankruptcy lawyer before filing and inform them of what your tax status is. There may be legal ways to exempt some of those funds or protect them before filing so you and your family can make use of the money. As always talk to a lawyer first because the law varies in each State and the issues surrounding refunds are complex.

-Be Well

Practicing bankruptcy in Portland Oregon affords me the opportunity to meet lots of interesting characters (clients). One issue I see arise that can cause a lot of emotion and turmoil in a bankruptcy filing is what to do when one spouse wants to file for bankruptcy, usually under Chapter 7, and the other spouse does not. The potential clients come to me and ask, what to do?

The first thing I look at, after looking at conflicts, means test issues and general ability for both of them to file a Chapter 7; is where is the debt. by that I mean who holds the responsibility for the outstanding debt they are trying to discharge? Typically in most married couples the debt is held by both partners in their individual names and they'll tend to have many co-signed accounts. If they typicaly client has maybe 50,000 in unsercured debt I typically see maybe 40% soley in the husbands name, 30% in the wife and the rest joint. When this is the case then typically it wouldn't make a lot of sense to not file jointly and take care of all the debt at one time. Why saddle the other partner with debt that they are both working on paying back outside the bankrutpcy...better for both to start clean together and get that fresh start. What happens with the above ratio is heavily tilted in one spouses direction?

If I see a client that has the huge majority if not all the unsecured debt in their name alone, then it may make sense to leave the non-debted spouse out of the filing and only discharge the debtor spouse; possibliy leaving the other spouse with a better credit score and option should the couple need to take on some type of financing down the road. That said, the bankruptcy code under a Chapter 7 does allow this proceedure and we can carve out one spouse. If you think this might apply to you and something you are considering then I always suggest that you seek the counsel of a bankruptcy attorney in your area and go over all your options. The above is just a very narrow explanation of one part of the law. Please talk to a lawyer directly as each case is unique.

Be well