Oregon Bankruptcy Lawyer Blog

After a quick consult this morning with a potential bankruptcy client I came across this article detailing that former U.S. Representative William Jefferson filed a personal Chapter 7 bankruptcy last week. Mr. Jefferson was once found with a freezer full of cash to the tune of about $90,000 and was recently indicted on corruption charges. Details about the bankruptcy are in the article. The one thing that struck me is that I usually tell my bankruptcy clients that its rare that a Trustee will be an in-home audit (or inspection) in Chapter 7 cases; somehow I think with this guys past it might be a good idea for the trustee to search the house....

If you have a freezer full of cash or other assets you are worried about my firm would be happy to talk to you about your options and duties under a Chapter 7 or Chapter 13. Feel free to contact one of our attorney's anytime.

Enjoy the day.

Oregon Bankruptcy Lawyer Talks About a Rise in Business Bankruptcy Filings

My bankruptcy practice mostly deals with personal (consumer) bankruptcy filings, both Chapter 7 and Chapter 13 cases. However this article details the other side of the filing spectrum, business bankruptcy. In total, business filings have increased by over 60% from 2008 numbers. This includes over one hundred percent increase in Chapter 11 filings and about a 50% increase in Chapter 7 business filings. These numbers probably don't include the many thousands of small business owners who are not corporate or partnership entities or who choose to file under the personal bankruptcy sections. Either way the numbers are not good for our economy and business in general. Hopefully the acceleration in bankruptcy filings will wane going into the fall and we can see a rebound in the Oregon business climate.

If you have any questions regarding either a personal bankruptcy filing in Chapter 7 or Chapter 13 or a business bankruptcy filing please contact our office. One of our bankruptcy lawyer's will be happy to set up a no-cost consultation to go over your options and see if a bankruptcy is right for you.

"Live with Passion"

A large percentage of my bankruptcy clients have large tax debts. Certain Federal taxes are easy to discharge but State of Oregon taxes are another story. A little bit of good next came out of Salem Oregon earlier this month; the Governor signed into law a tax amnesty program designed to reduce the back interest and penalty's that are due and set up a payment plan for the balance. For those in active bankruptcy filings there are some special requirements and you should talk to a knowledgeable bankruptcy lawyer about this program and what it might mean for your Chapter 7 or Chapter 13 filing; but if a bankruptcy is not able to help your State tax debt then this program might be helpful for you.

-A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.

Here's a small news story that should not come as much of a surprise for those of us living in the Portland Oregon Area. As a bankruptcy attorney I'm on the ground floor of seeing these changes and am surprised that its just now hitting the news. According to equifax Portland is 5th in small business bankruptcy filings following such large metro's as Los Angeles, Sacramento and Atlanta. As you can imagine real estate is the primary driver for the filings. Builders, contractors, real estate companies and mortgage companies have all been imploding up here for some time. The businesses that relied on those businesses have now started to collapse as well.

Without getting too political, I wish that the State of Oregon would do more to foster new business and create a climate where one can start, grow and mature a business. Instead the legislature decided to raise personal income taxes and business taxes by hundreds of millions of dollars. I cannot see how this will stem the tide of bankruptcy filings by small business nor do I see the new taxes as a way to bring more business to the State of Oregon or the Portland Area. My guess is we'll see more articles like this one showing what a poor State this is to do business in, but what do I know?...I'm just a bankruptcy lawyer in Portland.

Live with Passion

Probably the largest complaint I receive as a portland bankruptcy attorney is about the creditor calls my clients receive. They start typically 1-2 weeks after a payment is missed and increase in frequency the longer you don't make the payments. The first calls will usually be a couple of courtesy calls asking to set up a payment to get caught up. They will graciously agree to waive the 14.00 over the phone payment. Since you couldn't make the payment in the first place, you probably wont be able to make this one either; so its irrelevant.

Continue reading "Pre-Bankruptcy Issues: Getting Ready for the Phone Calls." »

Here's a quick note showing that nobody is immune from today's negative economic environment. Celeb. chef Gordon Ramsey, known for his foul mouth and good eats is facing a possible personal bankruptcy Profits are down at his fancy eating joints and Mr. Ramsey has resorted to selling his London home and down grading his sports car to something more modest. Probably good moves. I feel for his staff that's been cut and really don't have a place to go to.

It should not come as too much of a surprise that new figures this week show Chapter 7, Chapter 13 and Chapter 11 personal bankruptcy filings have gone up over 34% from 2008 to present. The rate of increase is shocking and a little scary, even for a bankruptcy lawyer such as myself. Here is Portland Oregon where I practice as a bankruptcy lawyer I've seen at least as much as a 30% increase in business; probably closer to 50%. The clients that I see on a daily basis are coming from all walks of life and more and more I hear that folks never thought they'd be having to file for a Chapter 7.

I think this increase, and I believe that it will go much higher is due to the fact that many folks have been holding on; using a bankruptcy filing as the very last resort and that they will exhaust other means (consolidation, 401k cash outs, balance transfers, etc) before considering a bankruptcy. Its seems that many of the people I help have simply run out of options. While I'm not advocating being flippant about a filing, I do think that people can benefit talking to a bankruptcy lawyer early on when you sill have options. We can often help people plan their way out of distress without a filing and if a filing is necessary, help them plan for the bankruptcy in an orderly fashion.

Most bankruptcy lawyer's don't charge for a quick consult (myself included) so there should be no reason not to talk to one of us; even if we end up saying a bankruptcy is not right for you...at least you'll know all your options early.

Be well for today

Well, there is good news for Michael Vick these days. Not only is he out of jail and signed by the Philadelphia Eagles but his Chapter 13 Bankruptcy plan will be confirmed now. Not many people knew that Michael Vick filed for bankruptcy, it didn't seem to make that large of a headline but even more unknown was that the Bankruptcy judge assigned to his case refused to confirm his plan until he signed. The judge noted that even though Mr. Vick has talent and would likely be employable until he inked a contract with a team, he could not show the steady income needed to support his Chapter 13 plan payments. So just like the rest of us, the rules of bankruptcy apply. That's good to know. Its also a reminder for those looking to do a Chapter 13 that a major hurdle is the ability to show the trustee and judge that your income will support the payments for anywhere between 36 and 60 months.

So if you don't have a sports agent sitting next to you, be prepared to show pay stubs, tax returns and bank statements. You should also be able to explain why your income is likely to be steady and what line of work you are in. A good bankruptcy lawyer can help you map that out or you can sign an NFL contract.

Go Eagles