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

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-