Oregon Bankruptcy Lawyer Blog

As a bankruptcy lawyer in Portland Oregon I find that a good part of my job decription is that of a financial planner and counselor. I work with my bankruptcy clients to budger, increase their cash flow and manage their secured and unsecured debt. Today I like to talk briefly about a common question that comes up...Do I still pay my bills when I have filed for a Chapter 7?

Now my typical bankruptcy lawyer reponse is "it depends". Seriously there are a lot of variations and this article should not substitute for a sit down with our firm or another bankruptcy law firm so an attorney can go over the exact details of your case. That said; typically you will not have to pay all your tier 2 bills either before or during the bankruptcy.

Continue reading "HOUSEHOLD BILL PAYMENT WHEN YOU HAVE FILED A BANKRUPTCY IN OREGON" »

Bankruptcy in Oregon can present a variety of challenges. Clients come in all the time with various issues and no one case is the same. As a bankruptcy attorney its my job to try to sort these issues out and present a clear path for my clients that helps solve their issues and gets them the fresh start they are looking for. One common issue that arises that can put a wrinkle in my clients plans is what to do when a friend or loved one is co-signed on the debt that they are considering discharging in a Chapter 7.

In cases like these there usually isn't a lot of good news to be had. Clients will ask if they can simply remove the co-signed person; whether its on a credit card or more commonly a car loan? The really only effective way to remove a co-debtor is to refinance the debt into one persons name. This would typically present a challenge to a potential client facing a bankruptcy since there credit scores in the first place require a co-signer. Its not likely they'd qualify. If that's the case then you can request a removal from the credit issuer but its unlikely they'd allow it since they have two parties they can go after if the debt is defaulted on. If you cannot remove them then what happens if I file a Chapter 7 bankruptcy?

If you file and discharge the debt the filing person or party can be let off the hook for the debt but the finance company will likely turn around and go after the co-signing party and try to hold them liable for the debt. Obviously this can present a severe financial difficulty for their loved one. This is one reason its really important to take your time in deciding whether a Chapter 7 makes sense in your situation and to seek good legal counsel. Every case is different so please talk to a local bankruptcy attorney in your area.

Enjoy the day