Sunday, October 17, 2010

Short Sales and Deeds in Lieu of Foreclosure in Oregon and Washington

Short Sales and Deeds in Lieu of Foreclosure

A short sale or deed in lieu may help avoid foreclosure or a deficiency.

Many homeowners facing foreclosure determine that they just can’t afford to stay in their home. If you plan to give up your home but want to avoid foreclosure (including the negative effects it will cause on your credit report), consider a short sale or a deed in lieu of foreclosure. These options allow you to sell or walk away from your home without incurring liability for a “deficiency.”

To learn about deficiencies, how short sales and deeds in lieu can help, and the advantages and disadvantages of each, read on.

Short Sale

In many states, lenders can sue homeowners even after the house is foreclosed on or sold, to recover for any remaining deficiency. A deficiency occurs when the amount you owe on the home loan is more than the proceeds from the sale (or auction) -- the difference between these two amounts is the amount of the deficiency.

In a “short sale” you get permission from the lender to sell your house for an amount that will not cover your loan (the sale price falls “short” of the amount you owe the lender). A short sale is beneficial if you live in a state that allows lenders to sue for a deficiency -- but only if you get your lender to agree (in writing) to let you off the hook.

If you live in a state that doesn’t allow a lender to sue you for a deficiency, you don’t need to arrange for a short sale. If the sale proceeds fall short of your loan, the lender can’t do anything about it.

How will a short sale help? The main benefit of a short sale is that you get out from under your mortgage without liability for the deficiency. You also avoid having a foreclosure or a bankruptcy on your credit record. The general thinking is that your credit won’t suffer as much as it would were you to let the foreclosure proceed or file for bankruptcy.

What are the drawbacks? You’ve got to have a bona fide offer from a buyer before you can find out whether or not the lender will go along with it. In a market where sales are hard to come by, this can be frustrating because you won’t know in advance what the lender is willing to settle for.

What if you have more than one loan? If you have a second or third mortgage (or home equity loan or line of credit), those lenders must also agree to the short sale. Unfortunately, this is often impossible since those lenders won’t stand to gain anything from the short sale.

Beware of tax consequences. A short sale may generate an unwelcome surprise: Taxable income based on the amount the sale proceeds are short of what you owe (again, called the “deficiency”). The IRS treats forgiven debt as taxable income, subject to regular income tax. The good news is that there are some exceptions for the years 2007 to 2009. To learn more, see “Income Tax Liability in Short Sales and Deeds in Lieu,” below.

Deed in Lieu of Foreclosure

With a deed in lieu of foreclosure, you give your home to the lender (the “deed”) in exchange for the lender canceling the loan. The lender promises not to initiate foreclosure proceedings, and to terminate any existing foreclosure proceedings. Be sure that the lender agrees, in writing, to forgive any deficiency (the amount of the loan that isn’t covered by the sale proceeds) that remains after the house is sold.

Before the lender will accept a deed in lieu of foreclosure, it will probably require you to put your home on the market for a period of time (three months is typical). Banks would rather have you sell the house than have to sell it themselves.

Benefits to a deed in lieu. Many believe that a deed in lieu of foreclosure looks better on your credit report than does a foreclosure or bankruptcy. In addition, unlike in the short sale situation, you do not necessarily have to take responsibility for selling your house (you may end up simply handing over title and then letting the lender sell the house).

Disadvantages to a deed in lieu. There are several downfalls to a deed in lieu. As with short sales, you probably cannot get a deed in lieu if you have second or third mortgages, home equity loans, or tax liens against your property.

In addition, getting a lender to accept a deed in lieu of foreclosure is difficult these days. Many lenders want cash, not real estate -- especially if they own hundreds of other foreclosed properties. On the other hand, the bank might think it better to accept a deed in lieu rather than incur foreclosure expenses.

Beware of tax consequences. As with short sales, a deed in lieu may generate unwelcome taxable income based on the amount of your “forgiven debt.”

Income Tax Liability in Short Sales and Deeds in Lieu

If your lender agrees to a short sale or to accept a deed in lieu, you might have to pay income tax on any resulting deficiency. In the case of a short sale, the deficiency would be in cash and in the case of a deed in lieu, in equity.

Here is the IRS’s theory on why you owe tax on the deficiency: When you first got the loan, you didn’t owe taxes on it because you were obligated to pay the loan back (it was not a “gift”). However, when you didn’t pay the loan back and the debt was forgiven, the amount that was forgiven became “income” on which you owe tax.

The IRS learns of the deficiency when the lender sends it an IRS Form 1099C, which reports the forgiven debt as income to you.

No tax liability for some loans secured by your primary home. In the past, homeowners using short sales or deeds in lieu were required to pay tax on the amount of the forgiven debt. However, the new Mortgage Forgiveness Debt Relief Act of 2007 (H.R. 3648) changes this for certain loans during the 2007, 2008, and 2009 tax years only.

The new law provides tax relief if your deficiency stems from the sale of your primary residence (the home that you live in). Here are the rules:

Loans for your primary residence. If the loan was secured by your primary residence and was used to buy or improve that house, you may generally exclude up to $2 million in forgiven debt. This means you don’t have to pay tax on the deficiency.

Loans on other real estate. If you default on a mortgage that’s secured by property that isn’t your primary residence (for example, a loan on your vacation home), you’ll owe tax on any deficiency.

Loans secured by but not used to improve primary residence. If you take out a loan, secured by your primary residence, but use it to take a vacation or send your child to college, you will owe tax on any deficiency.

The insolvency exception to tax liability. If you don’t qualify for an exception under the Mortgage Forgiveness Debt Relief Act, you might still qualify for tax relief. If you can prove you were legally insolvent at the time of the short sale, you won’t be liable for paying tax on the deficiency.

Legal insolvency occurs when your total debts are greater than the value of your total assets (your assets are the equity in your real estate and personal property). To use the insolvency exclusion, you’ll have to prove to the satisfaction of the IRS that your debts exceeded the value of your assets.

Bankruptcy to avoid tax liability. You can also get rid of this kind of tax liability by filing for Chapter 7 or Chapter 13 bankruptcy, if you file before escrow closes. Of course, if you are going to file for bankruptcy anyway, there isn’t much point in doing the short sale or deed in lieu of, because any benefit to your credit rating created by the short sale will be wiped out by the bankruptcy.

Tuesday, September 28, 2010

How can a Deed in Lieu of Foreclosure Create Debt Relief?

A Deed in Lieu of Foreclosure is an option for some homeowners who have fallen behind on their mortgage payments. In essence, this option will cancel the loan on the home for the home buyer, as he or she will give the deed (ownership) of the home back to the lender. It's different from a foreclosure because it's a straight-up deal -- an effort to avoid foreclosure is beneficial to the consumer and the lender because they both get something out of it -- the consumer gives up his home to avoid foreclosure, the lender accepts the deal to avoid losing profits on a property.

In most instances a deed in lieu of foreclosure is easier on consumer credit history and has a distinguished advantage above short sale in that the homeowner is not the responsible party for finding a new home buyer.

While it may not be easy to just walk away from an investment, it may be easier to walk away than enter a short sale, which is very damaging to credit history, or accepting foreclosure, which is also harms credit substantially.

If you can successfully offer your lender a deed in lieu of foreclosure, you'll have to walk away from your property completely, but it will in many instances be your best choice. You may still have to file for bankruptcy in certain circumstances, for example, if the home was what you used to collateralize debt with another lender, or if you are still left behind on other payments on car loans or credits cards.

It might be up to you to prove to your lender that the deed in lieu of foreclosure is good for them too -- they're not in the habit these days of wanting to hang on to more real property, but by the same token, they're not big on paying for all of the paperwork and rigmarole of foreclosure either.

If you think this is a viable option for you, discuss it with your bankruptcy attorney first to be sure there are not other choices that won't work better for you.

Saturday, September 25, 2010

Should I Sue an Abusive Debt Collector?

Sometimes debt collectors get out of control with phone calls to your home or office, and even in some instances, calls to your relatives and other people who you live with or have lived with in the past.

There is a fine line between what consumers may consider abusive and what the law considers abusive. There is a time and there are certain circumstances that would make it appropriate to sue a collector, but you need to know exactly what circumstances these are so you don't waste valuable time.

First of all, you have to have documented proof that a collector has broken the law. For example, did they call you after 9PM? Did they call you repeatedly after 9PM? Was the person or people you interacted with from the collector rude or use harsh or profane language? If they did, and especially if they did so repeatedly and you can prove it, then suing a debt collector might be the right thing to do.

Unfortunately, if you just feel inconvenienced by debt collectors and feel it isn't fair that they are contacting you, you won't have grounds to sue. That said, if you can prove your case in court that a debt collector has harassed you or treated you in a manner outside of what is considered appropriate, you may be entitled to certain monetary losses, such as those associated with a psychologist, or money you paid out to change your phone number in an attempt to discontinue excessive or abusive collector phone calls.

Tuesday, September 21, 2010

Is Bankruptcy Harder on My Credit Score than Foreclosure?

This is a great question that many clients I have ask when considering filing for bankruptcy in Portland or Vancouver.

The truth of the matter is that it depends, but oftentimes, people fear bankruptcy because they think it will be the worst of "two evils." It can often be the case that bankruptcy is easier on your credit score than a foreclosure.

To be 100% truthful, whether you opt for bankruptcy or foreclosure, there will be a negative impact on your credit. That said, foreclosure does damage without providing any positive results, namely, helping to restore your credit as a Chapter 7 or Chapter 13 bankruptcy will. In addition, a foreclosure does not wipe debt you owe to creditors and typically has a longer lasting negative impact on your credit score. As if that weren't enough, having a foreclosure on a property on your credit history will make it a great deal harder for you to purchase a new home in the future.

When you file for bankruptcy it will start your credit history from the ground up and allow you (in most instances) to have a fresh start for your financial health. In some cases, people who file for bankruptcy can bounce back within 24 months or so, as they make a strong effort to stay on top of bills and apply for any credit lines they can -- ensuring, of course, that they make their payments on time, even if it's with a secured credit card.

Regardless of what the general "rules" are, you need to consult with a bankruptcy attorney to know whether bankruptcy is the right choice for your financial future.

Friday, September 17, 2010

Is a Short Sale Better Than a Foreclosure for My Bankruptcy?

This is a common question among those facing bankruptcy, especially bankruptcy brought on by falling behind on mortgage payments. So what's the right answer?

When dealing with the bank that you have to pay your mortgage to, if you opt for a short sale and they agree, this allows you to sell the house for a value lesser than what you initially paid. If the bank accepts this agreement with you, you will no longer be held responsible for any more mortgage payments on the home (as it is no longer yours as of the date it is sold to the new owner.)

This allows you some breathing room, and while you will no longer own the home, you will have the money that you would have had to use to pay the mortgage to pay for other outstanding bills and/or for rent elsewhere.

The disadvantage is that it's pretty much up to you to find a new buyer for the home, and the bank that you have the loan with will have to agree on the new price of the home. If you're not quite sure what the bank will go for in terms of the price of the home, it can be an uphill battle. That said, most banks will work with you to some degree because getting a mortgage of some kind from someone is better than having the home go into foreclosure, which leaves it up to them to price and sell themselves.

Make sure that you discuss all of your options with your bankruptcy attorney -- short sales are not always the best answer for every consumer, especially given the state that the home is located in. It's always best to know which option best suits you and your chances at a better financial future.

Monday, September 13, 2010

Behind on Student Loans :: What can Happen and What are Your Rights?

Are you behind on your student loans? There are a few things you need to know that could happen in this instance.

Of the major consequences, the IRS can actually step in and use any monies you may have received in a tax return toward the payment of your student loan. They are lawfully able to do this until your loans are paid off in full.

That said, you are free to argue the IRS in their effort to remove partial portions of your tax return, but you must have good reason to earn this right. A helpful resource for obtaining information on your rights is (the official website of the National Consumer Law Center.)

Another possibility when you fall behind on your student loans is that earnings from your paychecks can be garnished. A debtor of a student loan may lawfully garnish up to 15 percent of the wages you earn.

But again, you may fight a garnishment from a debtor. In most cases, the best option for those behind on their student loans is to discuss the issue with the debtor and work out some kind of deal to either obtain an extension or at the very least get the debtor to lower the amount that they are garnishing from your wages.

For help with dealing with student loans in the midst of a personal bankruptcy, contact the offices of Tom McAvity by dialing 503.860.6868 today.

Thursday, September 9, 2010

Bankruptcy Protection for American Servicemen and Women

It seems only fair that those who have defended our nation should have a little extra protection when it comes to debt relief. This is exactly what the Servicemembers' Civil Relief Act offers. The Act covers all active duty military service persons. So what's the reasoning? Part of the reason is that it was determined that American military personnel earn less than "normal" income they would earn if they were to be working civilian jobs.

One of the provisions of the Act is protection for service persons to have the ability to lawfully terminate leases from both residential and commercial spaces. In addition to this protection, servicemen and women are protected against most forms of foreclosure. This includes those service people who have been inactive for three months or less, and protects them against credit unions, lenders, banks, or individuals they may owe monies to. This measure is only available to those service people who had a mortgage before they became active service persons.

There are several other protections made available to military personnel. Your personal bankruptcy attorney can help you decide which of these is appropriate for you once they have an understanding of the whole scope of your bankruptcy filing.

But if you are an active service person of the US military in any capacity, let your bankruptcy attorney know so that you can get the best possible protection available to you.

Sunday, September 5, 2010

Bankruptcy and Retirement Plans

Many of Tom McAvity's clients have a special concern when it comes to their 401(k)s, IRAs, and other retirement funds. So how will bankruptcy take its toll on these financial accounts?

Thankfully with the change in bankruptcy law made by congress in 2005, most retirement funds are safe from creditors, but there are some caveats. While defined benefit plans, Keoghs, and 401(k)s (among others) have unlimited protection from creditors, other retirement funds such as ROTH and traditional IRAs do have limits. Specifically, there is only guaranteed protection on these types of IRAs up to $1,095,000 for each individual. Important note: This means that the combined value of these retirement funds will be added up, and of all of them, you will be protected up to $1,095,000. So to be clear, you're not exempt per account, it's a cumulative exemption on all accounts added up.

Many people considering bankruptcy want to know what will happen with loans they have taken from their retirement funds. To answer this question, you and your bankruptcy attorney will first have to determine which type of bankruptcy you will file. In chapter 7 bankruptcy, you will have to pay back the loans because chapter 7 bankruptcy protection does not cover what you owe to yourself, only what you owe to others. Conversely, when you file for chapter 13 bankruptcy, loans made from retirement funds can be discharged. In addition, you will make payments on what you owe to your creditors over five years (in most cases, sometimes three years depending on the bankruptcy.)

Wednesday, September 1, 2010

Out of Control Debt Collectors: What you need to know

Millions of Americans are suffering under the duress of debt with little relief until and unless they are in a position to file for bankruptcy.

In the meantime, debt collectors oftentimes go way out of bounds in an effort to collect what they perceive they are owed. There are rules about how collectors must behave, and here are a few things you need to know about what collectors are not allowed to do:

Collectors may not:

  • send you mail that appears to be official or legal documentation,
  • tell you that you may be imprisoned or otherwise detained because of your debt,
  • tell you they can come take your property to pay the debt,
  • call or otherwise get in touch with third parties (with the exception of your attorney, the initial creditor to which you owed, or the credit bureaus,
  • call you identifying themselves as an entity other than a collector,
  • call you all day long everyday,
  • tack on additional fees they call "interest" when in fact it is not,

And perhaps most importantly, they cannot call you ridiculously early or ridiculously late -- calls must be between the hours of 8AM and 9PM.

If during a call with a collector you are spoken to harshly, or the agent uses foul language or shouts at you, this is also against the law.

If you have experienced any of the above you may contact the Federal Trade Commission (FTC), at -- and of course, let your bankruptcy attorney know if you have been a victim of collector harassment.

Friday, August 27, 2010

Bankruptcy Filings up, Bankruptcy Filings down: How can we know what the trends really are?

Overall we know that the majority of the country is experiencing the highest numbers in personal bankruptcy in quite some time. But some anomalies in the statistics are throwing economists, personal bankruptcy lawyers, and consumers for a bit of a loop.

According to the Rochester Business Journal, the bankruptcy stats in the area of western New York state are dropping -- well below national averages, and rather quickly.

Conversely, personal bankruptcy rates in in nearby Maryland are growing at alarming rates -- new data suggests perhaps as much as 20 percent higher than the national average. So why the stark difference? After all, Maryland and New York are in the same part of the United States, and the idea that western New York would be on the upside of this equation is somewhat counterintuitive.

New information reveals that the New York downward bankruptcy trend decreasing may likely have to do with the fact that the area did not experience anywhere near the devastation that the rest of the nation did during the housing bust. The major reasons for bankruptcy here are credit card and medical debt -- still serious, but statistically not comparable to bankruptcy caused by subprime housing issues and other large asset based-bankruptcy.

So why then is bankruptcy more prevalent in Maryland? While it's a stone's throw from New York, the likely answer is the obvious one: Maryland was harder hit by the subprime crisis than western New York. In addition, those who chose to file for personal bankruptcy opted for Chapter 7 more often than Chapter 13, making it clear that these were consumers in far over their heads. The Baltimore Sun suggests that another issue may be that consumers in Maryland may have abused their credit more than the average consumer in other parts of the country, but this speculation may not wash when all the cards are on the table.

Tuesday, August 24, 2010

Blockbuster not such a Blockbuster anymore

Remember the days when the whole family would pile into the car to drive down to Blockbuster and pick up a family-friendly movie to watch after TGIF on ABC? Ah, the golden age of Blockbuster -- in deed the golden age of entertainment before the Intenet -- certainly before YouTube.

As with all things tangible that we can drive to, with the exception of buying clothing, food, and gasoline, Blockbuster is rumored to be the next giant to fall into bankruptcy. It doesn't come as a surprise; even with the advent of their online availability, Blockbuster was simply piggybacking on the NetFlix idea, which caught on like the British Invasion... and so the Internet option for Blockbuster was overlooked for most move renters.

The Blockbuster bankruptcy is not a sure thing -- the company is doing everything it can to avoid chapter 11, including meeting with Hollywood bigwigs and making stronger efforts to compete with RedBox. But all that said, most financial experts agree that a bankruptcy filing or at least some pre-bankruptcy steps will be taken as early as the middle of September 2010. Right now Blockbuster mouthpieces are not saying "bankruptcy" outright, but what they are saying is something along the lines ofd "financial restructuring -- essentially code for bankruptcy with a plan for growth during and after. So what's next for blockbuster pre, during and post-bankruptcy? Likely rebranding efforts to compete with RedBox in a similar fashion with kiosks in familiar places like Walmart, etc. as well as an aggressive knock on Hollywood's door to secure some sort of proprietary partnership that competitors like RedBox and NetFlix won't be privy to.

They may just pull it off. Just as Tom McAvity and other knowledgeable bankruptcy attorneys will tell you, bankruptcy can be the best way to turn a financial future around, and in the case of Blockbuster, it may give them just the time they need to get some actionable marketing steps going to keep from going under.

Saturday, August 21, 2010

Small Business Owners :: Which Bankruptcy Chapter is for You?

With the unreal economic downturn the US has experienced since the major subprime crisis of 2007, it's really no surprise at all that small business like sole proprietors and partnerships have suffered tremendously. But what these mom and pop shops don't understand in the face of financial crisis is which chapter of bankruptcy is appropriate for their unique circumstances.

While it is true that proper business planning ahead of time can help small business owners from losing personal assets, most sole proprietors and other types of "micro-businesses" will still have to worry about personal assets becoming a part of a chapter 11 filing. So... would it make more sense to file chapter 7 or 13? Maybe so.

In many cases, a small business owner may be in such financial distress that they would have to file for both personal and business bankruptcies. For those who are sole proprietors, a personal bankruptcy can resolve both issues in many cases -- and in most of these cases, it can resolve the issues more quickly and more cheaply.

There are of course many variables: assets, estate plans, wills, inventory, insurance, and so on. This makes each small business bankruptcy turned personal bankruptcy different, and in some circumstances, moms and pops may have to file chapter 11 and chapter 13 or chapter 7.

The only way to know for sure is to get a consultation with a local bankruptcy attorney who can look at all of your financials and lead you down the right path. After all, making an educated decision armed with the knowledge of a lawyer could save your business or your personal assets. So don't go it alone; make sure you have proper representation that can make the most of your bankruptcy filing.

Tuesday, August 17, 2010

Chrysler Bankruptcy :: Trends in Corporate Bankruptcy up or down?

If you listened to the news several weeks ago, you probably heard that General Motors had paid off all that had been loaned to them by the federal government. Unfortunately for Chrysler, they have not share the same fortunate fate... not that it's all rainbows and unicorns at GM, by any means.

According to the Wall Street Journal's August 13 article about the Chrysler bankruptcy, what Chrysler owes just to the bankruptcy attorneys are in the neighborhood of $85 million... quite a sum for Chapter 11 bankruptcy help.

With regard to the primary bankruptcy law firm handling the Chrysler case, Eric Morath of the WSJ writes, "Jones Day charged an average of $500 per hour for the work done during the first four months of this year."

But Jones Day was not the only firm working on the Chrysler chapter 11 bankruptcy -- as one can imagine, a bankruptcy of this magnitude requires droved of law teams and their respective staff members.

Morath adds, "Nortel Networks, a company about a quarter the size of Chrysler when it filed for Chapter 11 in January 2009, has paid its attorneys and advisers $76 million in fees through the first 18 months of the case, according to Am Law Daily."

So it seems that while Chrysler tries to get out of the woods with their bankruptcy, the proceedings may be more than just a minor financial blow.

So the question remains: with some larger companies trudging up the bankruptcy hill with some level of success, others have larger mountains to climb. No one can really say with any level of accuracy what the real trends in corporate bankruptcy will look like over the next 12 to 24 months... at least.

Saturday, August 14, 2010

Is Celebrity Bankruptcy a Passing Trend or Reflection of Where We All Are?

Khloe Kardashian. Michael Vick. Donald Trump. Teresa Giudice.

These are just a few of the names of celebrities who have either filed for bankruptcy or who are facing financial difficulty. It seems as though Bankruptcy is more a trend for everyone, not just those who are "everyday folks."

Bankruptcy is a helpful tool for anyone -- anyone -- who needs debt relief, not just those of us who have experienced what could be perceived as minor difficulties.

With an entire nation under financial duress, Tom McAvity can tell you that debt relief and filing for bankruptcy is a good option for many people, famous or not.

If you need financial help and debt relief, contact Tom McAvity for help with bankruptcy in Vancouver, Washington, Portland or Salem, Oregon. Just call 503-860-6868.

Wednesday, August 11, 2010

Payday Loan Debt and Bankruptcy

Most people know that payday loans can be a very slippery slope, yet many may not have any other choices -- it's a matter of pick your poison. For this reason, when people get behind or have put their cars or other assets up as collateral, a bad financial situation can become exponentially worse.

If you've gotten in over your head with payday loans or other high interest rate loans, you may have to file bankruptcy, and that may be the best decision you make for your financial future.

If you have decided that the kind of debt relief that Chapter 7 or Chapter 13 bankruptcy can offer you might be your best bet, you'll need to talk with a knowledgable bankruptcy attorney like Tom McAvity who can help you sort things out.

It may be that bankruptcy is not the best fit for you -- it could be that there are better debt relief options for your circumstances. In any case, getting the advice of a financial professional will be your best bet.

Saturday, August 7, 2010

Is technology having an impact on celebrity bankruptcy?

In recent news, PHILO, an application to watch "buzzworthy tv" for the new iPhone, announced that they would donate a small percentage of their proceeds to a new "charity" to help save New Jersey Housewife Teresa Giudice and her husband from losing so much during their bankruptcy proceedings.

Will this type of technology soon be the new way to sponsor celebrities in financial trouble? If you think about it, it's sort of the way to have a celebrity spokesperson during an economic downturn. What's more, real and everyday people can relate to bankruptcy, because so many millions are experiencing it. What if an honorable organization were to put together a fund to help Michael Vick raise funds? Would this lend credibility to his new image of trying to be a better person? How about Chanel pulling some strings to help Khloe Kardashian with her nearly $20,000 debt to the IRS? Would it boost Chanel sales, making it a smart business and marketing move on their part?

Interesting food for thought in the world of celebrity bankruptcy!

Tuesday, August 3, 2010

Women and Bankruptcy :: The Numbers are Rising

New statistics are showing that women in particular are struggling with bankruptcy at historic rates. According to The Independent of Britain, women are filing at a rate 28 percent higher than just one year ago. Is there any reason for this disparity between the sexes, or is it just a coincidence?

The issue of the day for women seems to be credit card debt. Many are getting in over their heads, paying the minimum monthly payments, or stopping paying all together when they see that the high interest rates are keeping their balance from dropping at all. Very young women, such as those in college or recently graduated (or college age) find themselves in serious debt.

The Independent notes that women between the ages of 25 to 44 represent approximately 66 percent of all bankruptcies for women. Some experts suggest that the reason for such credit card debt in this age group may have something to do with "role models" who live lavish lifestyles, giving off a high profile image with which no price tag is attached.

Unfortunately credit card companies are not likely to help a young consumer -- in fact, within one or two late payments, APRs can rise to tremendous rates -- 29.99 percent and higher, making it near impossible to ever wipe out credit card debt without some sort of debt relief.

Those who need help from a Vancouver, Washington bankruptcy attorney can call Tom McAvity at 360.828.0110 for a free consultation to begin on the road to financial recovery.

Thursday, July 29, 2010

Bankruptcy and Clearing Debt

Many people who are facing serious financial strain will need to file for bankruptcy. Filing Chapter 13 or Chapter 7 bankruptcy can offer a tremendous amount of relief, but when it comes to paying debt back to creditors on a payment plan set up by the bankruptcy court, it's always in the best interest of everyone to come completely clean.

For some this may be difficult to face as certain assets don't just represent a monetary value -- there may be an emotional attachment to certain assets, many priceless memories of a life lived in a home that must now be used to pay off debt.

If we look at the most recent headlines we see that hiding assets is a very bad idea, and that in most cases, people who take part in this activity will be caught. Take the case of Teresa and Joe Giudice -- now in the headlines for hiding assets from the trustee of their bankruptcy, John Sywilok. Now the couple will face investigation for the accusations and their whole lives will be under a microscope.

The best thing to do is tell your bankruptcy attorney exactly what is going on so he can give very precise details to the bankruptcy court and your bankruptcy trustee. In the end you will be much better off, and debts will be paid off more easily.

Contact your Vancouver bankruptcy attorney today to begin the debt relief process.

Sunday, July 25, 2010

Green Tangerine, Naked City's owner Carrie Follis files personal bankruptcy

Can a personal bankruptcy have an impact on a business owned by the individiual filing for personal bankruptcy? In the bankruptcy case of Carrie Follis the answer is yes. Follis, the owner of Naked City magazine recently filed for Chapter 7 bankruptcy. According to BizJournals, Follis was awarded a debtor discharge as of July 23, 2010.

But that may not be all for Follis. The Green Tangerine Publishing, LLC owner may have business assets on the line according to the trustee of her personal bankruptcy filing. Many consumers with small to medium-sized businesses would ask if this is a common scenario. It can be, but most of the time business assets are protected if there is a clear line between personal and business assets. Many business owners will protect their personal assets by putting them in a number of kinds of trusts, while others take their chances, feeling safe that personal bankruptcy will not have an impact on their business if it is an LLC or corportation.

But as we can see here, Follis has an LLC and the personal bankruptcy filing now on her record could mean the loss of assets to her company.

If you're looking for debt relief but don't know if filing for bankruptcy will affect your business, call Tom McAvity at Northwest Debt Relief Law Firm today to find out with a free consultation at 1-360-828-0110.

Thursday, July 22, 2010

Rangers Bankruptcy | is it keeping them from signing free agents?

According to a recent article in BizJournal the bankruptcy filing of the Rangers Major League Baseball club is having difficulty signing both new free agents and international ball players who previously may have signed with the team undaunted. Nolan Ryan, the president of the Rangers ball club was the first to admit the bankruptcy's long reaching and heavy hitting aftershocks. Could this push the Rangers into further financial issues? After all, if the team can't win games because they are not competitive it will obviously eventually cost them endorsements and commercial sponsors.

Tom McAvity and other lawyers around the country know that filing for personal bankruptcy is a good choice for individuals who are in insurmountable debt caused caused by an upside-down mortgage, medical bills, and credit card bills. But what can bankruptcy mean for big business? As we have seen with the Rangers, the effects can be serious, and perhaps baseball is a good metaphor for what can happen with other large businesses with a great deal to lose financially.

Consumers should understand that personal bankruptcy and corporate bankruptcy are very different. For those seeking debt relief in Vancouver or Portland, Tom McAvity can help you with a free consultation. Are you ready to hear about your options in bankruptcy? Simply dial 1-866-601-1918 to set an appointment with Tom McAvity today.

Saturday, July 17, 2010

Tom McAvity :: What is a Bankruptcy Discharge

In the world of Oregon and Washington bankruptcy, a bankruptcy discharge is the same as it is anywhere else in the country. Here's the breakdown from Tom McAvity.

By definition, a discharge in bankruptcy means a legal release from debt owed to creditors. But there is a wider-reaching implication to a bankruptcy discharge in Vancouver or anywhere else. For example, one of the many implications regards creditors and collectors.

Once your debt has gone into discharge, creditors are no longer allowed to contact the person whose debt has been discharged. There are however some misconceptions. For example, there may be debt owed by a consumer that is NOT a part of their bankruptcy discharge. In this instance, not only will the debt still be owed, but the creditor to which the debt is owed may still contact the consumer. Tom McAvity can help explain what your discharge will include and/or not include based on your unique bankruptcy case in Salem or Portland, OR and Vancouver, WA.

Call Tom McAvity today for more information on bankruptcy discharge and how it could help your financial circumstances.

Monday, July 12, 2010

Vancouver, WA Bankruptcy filing done easily

If you are a Vancouver, WA resident and you are trying to file for bankruptcy but don't know how, simply call Tom McAvity at his Vancouver, Washington office. All you have to do is dial 360-828-0110 for a FREE consultation.

In addition, if it is easier for you, set an appointment online for your free bankruptcy consultation today. All you have to do is click here.

If you have been looking for a way toward financial freedom, just know that bankruptcy has been the answer for millions of Americans and others worldwide. NWDRLF offers you the security and peace of mind you need when looking into bankruptcy.

Tom McAvity offers free consultations for Chapter 7 and Chapter 13 bankruptcy in Vancouver, WA, as well as Portland and Salem, OR.

Saturday, July 10, 2010

Chapter 7 Bankruptcy in Vancouver, WA

Though Tom McAvity has posted a thorough YouTube video on this blog previously, it's always a good idea to have a refresher course when it comes to bankruptcy because consumers need to have at least a cursory understanding of what it means to file for chapter 7 bankruptcy in Vancouver, WA.

So what is chapter 7 bankruptcy? What are the implications exactly? Chapter 7 discharges a consumer from his or her debt entirely, allowing him or her to "walk away from" the debts owed to creditors. It is a permanent decision once enforced by the bankruptcy court under federal bankruptcy statutes. Tom McAvity can tell you that by removing all the debts a consumer owes, creditors are no longer allowed to call, e-mail, or otherwise attempt to contact the debtor who has filed for chapter 7.

There is great protection in chapter 7 if the shoe fits for your particular bankruptcy needs. If you'd like to speak to Tom McAvity and get a feel for what filing for bankruptcy in Vancouver can do for you, please call our Vancouver office by dialing 360-828-0110.

Tuesday, July 6, 2010

Declaring Personal Bankruptcy in Salem, OR

NWDRLF and Tom McAvity can tell you that all of the same rules for filing personal bankruptcy in Oregon apply in Salem just as they would in Portland and other cities. People often have many of the same questions for Tom McAvity about declaring personal bankruptcy in Portland, so let's take a moment to answer a couple of those questions -- we will get to other important questions in later posts.

The first of two questions about bankruptcy we'll discuss is, "Does filing bankruptcy have a strong negative impact on my credit?" The answer to this question is that most likely, the fact that you are having to file for bankruptcy means that your credit is already in relatively bad standing. While bankruptcy clearly has a short-term negative impact due to the fact that it offers you a brand new clean slate, many who file have recovered a decent credit score within two years or less.

The second common question is, "Will I be able to maintain ownership of property like my home and car if I file for bankruptcy in Salem, OR?" The answer to this question is this: as long as you have equity in the property that is completely exempt you WILL be able to maintain ownership of your home and other larger assets if you file for bankruptcy. You will be held responsible for making payments to the bankruptcy court over the course of a three- to five-year payment plan. Tom McAvity will help you set up this bankruptcy payment plan with a trustee of the court.

Thursday, July 1, 2010

Consumer Bankruptcy Filings Rise in Middle Class

A PRWEB news release on June 30th notes that according to the Institute for Financial Literacy's Annual Consumer Bankruptcy Demographic Report, the effects of consumer and personal bankruptcy are more widespread across sectors of middle class America than ever before during what we now know as the "Great Recession."

The report suggests that consumers in need of bankruptcy in years past were those who earned $30,000 USD or less. According to the report, the yearly salary range for those seeking debt relief are in the group of consumers who make $60,000 USD per year or more. This is a massive shift statistically, but it helps to paint a clearer picture regarding those are in need of bankruptcy or other debt relief help. These numbers make sense to Tom McAvity; he and NWDRLF assist potential bankruptcy applicants everyday and can attest to the fact that the need for bankruptcy in Vancouver, Washington and Portland, Oregon is no longer discriminating any group of consumers.

What’s the bottom line? These statistics tell Tom McAvity and other bankruptcy attorneys that those who need their help are not in any one demographic anymore — it's a need that has swept the nation. That said, all consumers who might be in denial of their need to file for bankruptcy could be doing themselves a disservice.

If you are among the group in need of debt relief in Vancouver, WA or in the Salem or Portland, OR areas, consider having a free consultation with Tom McAvity and NWDRLF. All you have to do is call 1-866-601-1918 — and remember, the consultation is free and confidential.

Saturday, June 26, 2010

John Beardsley Bankruptcy | Consumer and Corporate Bankruptcy

According to a June article in the Portland Business Journal, Oregon property owner John Beardsley will be reorganizing his debt with bankruptcy, causing him to have to let go of the Oregon Pioneer and three other Oregon commercial properties. In another Beardsley bankruptcy which is specifically and strictly filing for the Beardsley's US building block, Beardsley is expected to retain ownership of the Fountain Village property.

Northwest Debt Relief Law Firm and Tom McAvity share this story as an example of an Oregon bankruptcy filing that shows that no one is exempt from the potential need for debt reorganization. When it's the right choice, it allows individuals to reorganize and get a fresh start.

It's important for consumers to understand that bankruptcy offers relief, and that the stigma attached to filing for bankruptcy is based on invalid and unvetted opinions -- not facts. The truth is that everyone from consumers with modest incomes all the way to massive corporations could have a need to file for bankruptcy. It's an option that American consumers are entitled to, and Tom McAvity offers the best in bankruptcy support in the Portland, Oregon area. NWDRLF also supports those in need of bankruptcy in Vancouver, Washington as well as Salem and Portland, Oregon.

Let Tom McAvity help you today. Call for a free consultation today by dialing 1-866-601-1918.

Wednesday, June 23, 2010

Downturn in Bankruptcy Filings Likely not to Last

According to the Wall Street Journal, the dip in bankruptcy filings in May are likely not representative of the "bigger picture" trend in bankruptcy filings in the U.S. moving through the rest of 2010. Tom McAvity and NWDRLF are here to help those who are still in need -- and urge you not to forget bankruptcy as a legitimate option in a time of financial crisis.

The Wall Street Journal's Sara Murray notes that even though bankruptcy was down for May, 2010, it was still higher by nine percent than May of 2009. Murray writes, "Consumers are still struggling with high unemployment and tight credit conditions, which can be particularly damaging to small businesses that are often funded by personal lines of credit." Tom McAvity and NWDRLF agree with this assessment and wish to reach out to those who have lost jobs and who are suffering from insurmountable credit card debt.

Personal bankruptcy in Portland, OR is no exception to these statistics. NWDRLF and Tom McAvity can offer you the support and guidance you need if Chapter 13 or Chapter 7 bankruptcy are viable option for you and your family.

Sunday, June 20, 2010

Taxes and Bankruptcy: Do I have to file to file?

Yes, you will have to get current with your tax returns when you file for bankruptcy in Portland, OR. Tom McAvity explains why.

Don't get scared or let filing your tax returns deter you from beginning the bankruptcy process -- bankruptcy can help with debt to the IRS. While some people are so fearful of filing taxes during (or even before!) a bankruptcy, it is a part of the process that must be tended to during the Chapter 7 or Chapter 13 bankruptcy filing process with attorney Tom McAvity or any other bankruptcy lawyer in the U.S. You may even be eligible for discharging some of your taxes during a bankruptcy -- and this can provide a huge relief to you and your family.

Before you start wringing your hands and worrying about taxes you haven't filed, remember that you will have the protection of bankruptcy and the representation of a qualified Oregon bankruptcy attorney

For more information on discharging your taxes in bankruptcy, watch the following video.

For more information on why and how you need to file your taxes during bankruptcy, call Tom McAvity today by dialing 1-866-601-1918.

Wednesday, June 16, 2010

Bill Collector Harassment | Tom McAvity Suggestions

When faced with bill collector harassment, you do have options. There are some collections agencies who will inaccurately tell you that you are not eligible to file for bankruptcy. Whether or not you are entitles to bankruptcy is not up to collectors -- it is a matter between you and your bankruptcy attorney. You may or may not be eligible based on a number of unique circumstances. That said, Chapter 7 and Chapter 13 are great tools for debt relief for a number of people.

Tom McAvity and Northwest Debt Relief Law Firm can tell you what options may best suit your needs based on the various aspects of your financial circumstances. There are many options in debt relief outside of bankruptcy, and you can discuss these options with a debt relief counselor or attorney who knows the ins and outs of the laws.

You do have fair options available to you -- it's your right as a consumer to seek aid in the form of bankruptcy or other forms of debt relief. Tom McAvity can help you discover what your options are. While many argue that bankruptcy is not a viable option, it is an extremely effective way for consumers just like you to create a fresh start and get credit card debt and mortgages under control.

If you're considering your financial options and would like to hear more about bankruptcy and debt relief, call Tom McAvity at NWDRLF today by dialing 1-866-601-1918.

Saturday, June 12, 2010

Chapter 13 Bankruptcy Explained

Here's another great YouTube video from Miranda Chuck. In this clip, Miranda explains exactly how Chapter 13 bankruptcy works, and who it may or may not be a good fit for. Tom McAvity knows that many people fear bankruptcy because they simply don't have a clear idea of what it is. In order to make a decision about bankruptcy, consumers MUST know EXACTLY what it is and what the positive and negative impacts are. Chapter 13 can stop a foreclosure and allow between 3 to 5 years for consumers to repay a portion of their debt or all of it depending on their unique Chapter 13 bankruptcy filing.

Here's Miranda Chuck discussing Chapter 13 bankruptcy for individuals:

When you are ready for your FREE bankruptcy consultation, contact Tom McAvity at NWDRLF by dialing 1-866-601-1918.

Tuesday, June 8, 2010

Chapter 7 Bankruptcy Definition

In this greatly detailed video, a knowledgable CPA describes Chapter 7 bankruptcy, exactly what it means, and exactly how it works. Miranda Chuck explains how discharging debt allows for consumers to have a fresh start. Please review this very well-thought out discussion of Chapter 7. If you have any questions following the video, please contact Tom McAvity for more information or to schedule a free bankruptcy consultation.

Friday, June 4, 2010

Portland Bankruptcy | Does Bankruptcy Clear Student Loans?

According to a recent New York Times article written by Ron Lieber, the current state of bankruptcy law makes it extremely difficult if not impossible for most people to wipe out student loans with bankruptcy filing. Tom McAvity has been following the trends, and it appears as though a number of congresspersons are determined to help people get rid of student loan debt with bankruptcy, especially in cases where loans were disbursed from lenders such as Sallie Mae.

While we wait for more fair rulings where student loans and bankruptcy are concerned, many people struggle, knowing that they can't pay their mortgage, car payment, and other lines of credit in addition to their student loans. For these people, Tom McAvity can assess their unique situation and determine if bankruptcy filing in Portland will help to lessen the financial burden -- even if student loans are not wiped out by bankruptcy.

In his New York Time article Ron Lieber argues that it's insanity that a person can wipe out the debt they owe on an expensive luxury car while someone who simply wanted to educate himself is unable to clear a debt for having done so.

If you are struggling with debt associated with student loans in addition to a an ARM mortgage and/or other heavy debt, Tom McAvity can tell you there is hope through debt relief. Bankruptcy may be a good fit for you. To find out, call 1-866-601-1918 for a FREE bankruptcy consultation.

Tuesday, June 1, 2010

Bankruptcy Attorney Tom McAvity: May 2010 Bankruptcy Filings Highest in 5 Years

If you didn't believe that bankruptcy had become a wise choice for millions of Americans, the you may want to consider what the Reuters recently reported. According to the Reuters article by Jonathan Stempel, bankruptcy filings for May 2010 fell into the second highest number of filings in the U.S. since 2005. What Stempel tells us is that just because the markets may be on the rise in some sectors, this is not a direct reflection of what the average American is going through financially.

Stempel quotes Mike Bickford, president of AACER as saying, "Just because the economy gets better doesn't mean that consumers can work off cascading debt problems that surfaced earlier," So what does this mean? The bottom line is that this is the truth. Bankruptcy is a viable option that many people who should are not taking advantage of. Some out of fear, some out of shame, some because they don't want a bad credit report.

Tom McAvity and NWDRLF can tell you that your credit score will only improve if you are a candidate for bankruptcy and you use it as a tool to reorganize your debt before it spirals completely out of control. You have options -- and not only are they there for you, you are entitled to them as a consumer. Make use of your options. Get a fresh start with the help of Tom McAvity.

Everything we need to know about the reality of this economy is out there -- millions of people need help, and the Northwest Debt Relief Law Firm and Tom McAvity want you to succeed and repair your credit. Call today for a FREE bankruptcy consultation by dialing 1-866-601-1918.

Saturday, May 29, 2010

Vancouver Bankruptcy: Credit After Bankruptcy is Possible

One of the most common reasons by far that people don't file for bankruptcy is that they live under the misconception that bankruptcy will keep them from ever being able to attain credit again. This is simply not true. As a matter of fact, the sooner you get your finances organized, the more likely you are to be eligible for new lines of credit sooner. That's where filing for bankruptcy with bankruptcy attorney Tom McAvity comes into play for your family's financial health.

Tom McAvity has experience helping hundreds of people just like you. Lenders like to see that consumers are making -- or have made an effort to get back on track. The very word "bankruptcy" is taboo even today, but it ought not be. Those who do qualify for bankruptcy in Vancouver who take it seriously, stay organized, and make their payments on time will be surprised at how quickly they are back on their feet in terms of credit eligibility.

Tom McAvity and NWDRLF can help you begin the Chapter 13 debt reorganization process, or get you started with a Chapter 7 bankruptcy. Which type of bankruptcy is most appropriate for you will depend on your unique financial circumstances.

If bankruptcy is right for you, the fresh start it provides will lift a weight off your shoulders. NWDRLF offers free bankruptcy consultations. Get started today by dialing 1-866-601-1918.

Tuesday, May 25, 2010

Vancouver Bankruptcy Blog: 10% of US Homeowners 60 Days Delinquent

As May draws to a close, new reports suggest that approximately 10 percent of all home loans are delinquent in the U.S. by 60 days or more. The Mortgage Bankers Association noted that in addition to the national average of 10 percent, percentages in Nevada and Florida are trending closer to 20 percent.

Tom McAvity and the bankruptcy attorneys at the Northwest Debt Relief Law Firm know that this is not new news, and that this trend has been rather consistent for several fiscal quarters. For people seeking some kind of relief that just don't know where to turn, the smartest choice may be filing bankruptcy in Vancouver.

While filing for bankruptcy may not be the best option for everyone, for those it can help it helps immensely. By now most people who keep up with the news know that Chapter 13 bankruptcy is a popular choice for those facing foreclosure. If this shoe fits, it allows those who file to consolidate their debt (all credit cards, house payments, car payments, etc.) into one payment that is overseen by a trustee of the bankruptcy court.

If this is the right choice for your circumstances, bankruptcy attorney Tom McAvity can help you file your bankruptcy in Vancouver, WA, or Salem and Portland, OR. Many people may not realize it, but bankruptcy is a very wise choice for many. If you're eligible to file for Chapter 13 bankruptcy, let Tom McAvity and NWDRLF help you today. All you have to do is pick up the phone and dial 1-866-601-1918 for your free bankruptcy consultation.

Sunday, May 23, 2010

Vancouver, WA Bankruptcy Attorneys can Help You

If you have been contemplating bankruptcy and think you'd like to begin the process but just don't know where to begin, it is time for you to contact Vancouver, WA bankruptcy attorney Tom McAvity. There are many options, and you likely have not been presented with all of the debt relief options you may be eligible for.

Most consumers with a great deal of debt, whether from credit cards, medical bills, or an upside down mortgage will be eligible for either Chapter 13 or Chapter 7 bankruptcy filings. There are other options, such as home loan modification, debt consolidation, and other debt relief options. Tom McAvity and other bankruptcy attorneys with Northwest Debt Relief Law Firm will not know which of these options best suits your unique financial needs until he or she has reviewed your information. The good news is that all NWDRLF consultations for bankruptcy are free, and you will have 24-hour access to your case file through our secure online portal.

We know that you probably don't know what lies ahead for you and your family financially, and we also know how scary that can be. But what bankruptcy offers is a fresh start, and a way for you to step out of that fear and move on with your life. Tom McAvity and the NWDRLF want you to have a fair chance at a great future. Call us today for a free bankruptcy consultation by dialing 1-866-601-1918.

Friday, May 21, 2010

You're not Alone: File for Bankruptcy in Salem, OR

Many people are scared to file for bankruptcy because they just don't know exactly what it entails or what it will mean for their financial future, or worse, what people may think of them for filing bankruptcy in Salem, OR.

Thomas McAvity and the team at NWDRLF can tell you that this is a common concern -- but the good news is that it shouldn't be. There are many misconceptions about filing for bankruptcy, and chief among those concerns is reputation. Did you know that when you file for bankruptcy it is completely confidential? What that means is, unless you tell people, no one will know -- not your friends, work associates, family members, neighbors, or anyone else.

The Northwest Debt Relief Law Firm and Thomas McAvity are dedicated to helping you get a fresh start with Chapter 7 or Chapter 11 bankruptcy in Salem, OR, or in the Portland, Oregon and Vancouver, Washington areas. These three bankruptcy offices will meet all of your needs, anytime night or day.

If you have been living in fear of bankruptcy because you just don't know what is fact and what is fiction, you need the help of a qualified bankruptcy attorney like Thomas McAvity. Call NWDRLF today to have your questions answered and get on the road to better financial health today! 1-866-601-1918

Wednesday, May 19, 2010

Foreclosure Defense and Filing Bankruptcy in Vancouver

Bankruptcy Attorney Thomas McAvity has helped many people face bankruptcy in Washington, and for many of these people the main focus has been foreclosure defense. Why? Because most of the millions upon millions of bankruptcies being filed are the result of home foreclosures caused by sub-prime and ARM mortgages.

Using Chapter 13 bankruptcy to protect yourself from predatory lenders will allow you to move on financially. If you qualify for Chapter 13 you will be offered debt reorganization and you will be assigned a trustee from the bankruptcy court. This trustee will handle all of your debt in a consolidated manner, and you will only need to make one payment which will cover all of the debt you owe to your mortgage company and any other creditors that you owe. Scheduling a free consultation with attorney Thomas McAvity can help you and your Washington bankruptcy attorney figure out which form of bankruptcy best suits your unique needs.

If you are interested in Chapter 13 bankruptcy and think you may qualify, call Thomas McAvity and the Northwest Debt Relief Law Firm today by dialing 1-866-601-1918.

Monday, May 17, 2010

Foreclosure Notice: What do You do Now?

So you got the foreclosure notice, and even if you saw it coming, your heart probably sank -- holding the papers in your hand makes it very real. But you're not alone and you do have options for debt relief in Vancouver. Tom McAvity and the Northwest Debt Relief Law Firm can help you, so start the process as soon as possible.

Foreclosure notices can make homeowners feel like they are under the microscope, but pulling the ostrich routine is not the answer. Do not ignore the foreclosure notice, even if you have decided to let the house go. You see, if you take action now rather than waiting for the creditors you owe to take action you may be surprised to find that you are in a far better situation than you thought, and you can seek debt relief with Chapter 13 or Chapter 7 bankruptcy, depending on your financial situation. Tom McAcvity can sort through your information and determine what you're facing financially as well as in terms of your foreclosure.

There are always options in debt relief, but you may rob yourself of those opportunities if you don't take action in time. Help Tom McAvity help you. When you contact the Northwest Debt Relief Law Firm you will get a FREE consultation and 24-hour support, so call today: 1-866-601-1918.

Saturday, May 15, 2010

What can I do to Prepare for Bankruptcy?

When preparing for bankruptcy, many people have a very hard time. They are scared, they are worried, they feel they will be judged. Know that if you are contemplating bankruptcy that it may be one of the best decisions you will ever make. Thomas McAvity and the law team at the Northwest Debt Relief Law Firm can help you with a fresh start.

Aside from assessing the value of your home and cars, and figuring out what you owe to creditors, you'll want to do a few other things to prepare.

One of the most important pieces of data you will need to have handy for your Portland, Oregon bankruptcy attorney regards whether or not you are on the verge of being foreclosed on your home. If you know that you are mere days or weeks away from a foreclosure, you will need to know the exact date that you will go into default. You may be facing a lawsuit, so alerting Thomas McAvity and the NWDRLF team will help them help you.

Another crucial step you can take to prepare for bankruptcy is simply jotting down a very comprehensive list of the questions you have for your Oregon bankruptcy attorney. Don't hold back here, and remember the old adage: the only stupid questions are the ones that are not asked! So put in on paper -- any and every question you have -- knowing the answers to all of your questions during the pre-bankruptcy process will give you peace of mind.

NWDRLF and bankruptcy attorney Thomas McAvity are ready to serve your bankruptcy needs. Call today for a FREE consultation: 1-866-601-1918.

Thursday, May 13, 2010

Filing Bankruptcy in Washinton Bankruptcy: Pre-Bankruptcy in Steps

There are some steps that Tom McAvity recommends taking when you may be facing filing for bankruptcy in Washington. Here are some of the steps you may want to take in terms of pre-bankruptcy planning.

a) Put it on paper: Do an assessment of what you owe to creditors by making a list of who they are, then pull up all of your old statements and write down how much you owe each individual creditor. Chances are that you will have both unsecured and secured debt. If you're not sure which debt you have falls under which category, then don't fret over it -- just compile what you have and your Washington bankruptcy attorney can help you figure out the rest from there.

b) Evaluate the dollar value of your vehicle(s): If you don't know the value of your car offhand, then you can look it up by visiting the Kelley Blue Book Web site. Put these figures down on paper, and don't forget to include things like RVs, boats, off-road vehicles, and even golf carts.

c) Figure out how much your home is worth: From the day you purchased your home until today, your home has depreciated (unless you are a rare exception in this economy). If you are not aware of the current value, you can figure it out by visiting a very helpful Web site called Zillow. Once you have visited Zillow, make a note of your findings; this will help Tom McAvity and the NWDRLF Washington bankruptcy attorneys when assessing your bankruptcy needs.

These are just a few of the major things you'll want to have figured out for the pre-bankruptcy process. You can always get help from Tom McAvity and NWDRLF if you just don't know where to begin. Remember that millions of people are struggling. Assessing your debt and preparing for bankruptcy will create debt relief for you and your family.

Tuesday, May 11, 2010

Tom McAvity tells us how Chapter 13 Helps with Foreclosure

Vancouver bankruptcy attorney Tom McAvity can help you stop the foreclosure process on your Salem, Portland, or Vancouver home. This allows you and your family to deal with the other debts that could be contributing to potential financial fallout.

The protections offered by the U.S. Bankruptcy Court are not in any way influenced or dependent upon any agreements with any financial institution holding a mortgage. When you meet the requirements laid out in bankruptcy law, you will be eligible for help without a doubt. Well-seasoned bankruptcy attorney Tom McAvity and the law team at NWDRLF can tell you if you qualify for bankruptcy and what is necessary to begin the process. If your bankruptcy lawyer notices that other options apply, he will tell you during the pre-bankruptcy process. can often let you know during your initial free consultation with

If filing bankruptcy in Washington is the best option for you, you won’t learn about it until you speak to a qualified bankruptcy lawyer, such as Tom McAvity. Chapter 13 bankruptcy in Vancouver can stop the foreclosure process and allows you as many as five years to get current with all of payments you've missed. Chapter 13 can also dramatically reduce – or even eliminate – personal loans and credit card debt so that you have enough freed-up income to make your house payments on your new plan. Consider Chapter 13 before you consider other more costly and less effective approaches.Call NWDRLF today by dialing 1-866-601-1918.

Sunday, May 9, 2010

Ask Tom McAvity: Okay, Filing Bankruptcy is for Me… Now What?

Once you realize bankruptcy is the right choice, chances are you'll want to get started right away – but Tom McAvity will tell you that while bankruptcy in Salem may be for you, it doesn't happen overnight. As soon as you’ve decided on bankruptcy, stop charging up any credit cards under your name – quitting charging altogether is recommended. The bankruptcy court will review your credit history for the past 90 days, and this will include a review of your credit card history. This is done to establish whether or not you're trying to start making better financial choices as a preliminary step to filing bankruptcy in Vancouver.

Add up the total income brought into the house each month. Review the difference in what you make versus what you owe in general and on a monthly basis. If you are running out of money at the end of each month, bring evidence of this to bankruptcy lawyer Tom McAvity. Your bankruptcy attorney needs to know how things are going for each and every 30-day period to plan your bankruptcy filing in Vancouver or Portland.

If you’re ready to begin the pre-bankruptcy process, call Tom McAvity by dialing 1-866-601-1918 for a free bankruptcy consultation. Our experienced Portland and Vancouver bankruptcy lawyers can help you get started with your bankruptcy.

Wednesday, May 5, 2010

Can I File Bankruptcy if I Already Have Before?

You can still file for bankruptcy in Vancouver or Portland after having filed previously, so long as you meet the requirements for another bankruptcy (either Chapter 7 or Chapter 13 personal bankruptcy. With Chapter 13 you may refile bankruptcy again after two years, but the new bankruptcy must also be a Chapter 13.

In addition to the above caveats, you must:

  • have lived in Oregon or Washington for at least 90 days to file Chapter 13
  • petition for Chapter 13 bankruptcy with the appropriate bankruptcy court
  • await the bankruptcy court's acceptance of your petition -- they will send you a notice listing all of the creditors you owe
  • await the court's appointment of a trustee to your bankruptcy case -- if you haven't heard anything and you feel you should have, get in touch with Thomas McAvity, your Vancouver bankruptcy attorney right away

Anything beyond this will depend on your unique bankruptcy case -- as they say about snowflakes, each of us is different, and so are our bankruptcy filings.

Above all, what you need to understand more than any of the confusing details is that there is help for you, you are entitled to it, and you can reach out to bankruptcy lawyer Thomas McAvity for help. A healthy financial life is in your future, but you have to choose it for yourself before anyone can help – but once you choose, help will be on the way.

Please call Thomas McAvity and the NWDRLF team by dialing 1-866-601-1918 or simply click here to send an e-mail directly.