Oregon Bankruptcy Lawyer Blog

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

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

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

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?" »

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" »