Thomas McAvity :: Bankruptcy Blog

What Happens to Your Credit Soon After Personal Bankruptcy?

2011-12-27T13:24:00.000-08:00

Trying to get credit after you file for bankruptcy has been reported for a long time as being extremely difficult, but it's not absolutely impossible. Whenever you apply for credit, it's critical to make certain your lender is aware of a bankruptcy. Quite a few creditors choose to consider any reason for individual bankruptcy and often make allowances for certain reasons.

At times the interest rates for those who have declared bankruptcy are much higher than normal terms. This can make paying off the credit obtained somewhat tricky. Even so, creditors commonly don't mind because they also know there is a time limit in which you may claim bankruptcy again.

Furthermore, if you should go into default on a loan you have no escape options while they have the law on their side. So, many of the high risk creditors have zero problem agreeing to a consumer that has recently declared bankruptcy, as they know you'll be forced to pay regardless.

With the availability of credit being small after individual bankruptcy, it will be time to start rebuilding your credit. Do not forget that your bankruptcy will stay on your credit history for ten years and any beneficial notations made on your report will show future creditors that you are making the right steps to get your financial life back in order. Several credit card providers may be prepared to take a risk on you fairly just after your personal bankruptcy, but the high interest rate may not be worth the effort.

Additionally, there are companies who offer pre-paid credit cards which work similarly to your bank's debit card, but will instead report your good results to the credit agency. You will need to open a merchant account with them and your accessible credit depends on the balance. You will need to make monthly payments and maintain the first balance in your account, but the appeal is your payments will be given to the credit bureaus helping you rebuild your credit.

It's really a great idea to start rebuilding your credit right away, after declaring bankruptcy. However, be sure you do so in a way that doesn't allow you to end up right back in the sticky financial predicament you were in prior to the bankruptcy process began.

There isn't any reason to undergo the complete bankruptcy process, only to find yourself deep in financial trouble once more. Talk with a financial consultant or even your bankruptcy attorney to figure out what the best approach is for you. They can likely offer you easy methods to responsibly reconstruct your credit.

Bankruptcy and the Situation of Wage Garnishing

2011-12-18T14:32:00.001-08:00

Pay garnishments can certainly seriously make monthly bill payments tough. Each state places a limit of income that can be withheld through a salary. A supervisor deducts that amount per paycheck prior to the worker getting paid, until eventually the balance, court costs, interest and attorney fees have been taken care of.

Giving up a third to a quarter of a person's earnings can make covering your other expensive economical account abilities even more difficult. Income garnishments can easily occur regardless of precisely what your various other economic commitments may possibly be.

A person may possibly find that you might no longer pay your rent, car payment, goods and daycare costs. Fortunately, there is help to assist you and give you the capability to return to your feet. Declaring bankruptcy will stop those garnishments right after the personal bankruptcy paperwork is recorded with the courts.

The only instance when this may not occur is whenever the wage garnishment is caused by very delinquent student loans. Filing bankruptcy may appear frightful in the beginning, but it could be a necessity if wage garnishments are being subtracted from a payroll check that's already stretched to the limits.

Personal bankruptcy provides the filer the satisfaction to stop worrying about how exactly to pay those health care bills that the insurance company did not cover or even that may have happened while you were unemployed or laid off due to an accident.

Being unable to pay your bills is not an item that folks do on purpose, but can occur for a number of reasons. Consumer bankruptcy is often a quick process that will take about six months to finish the process.

There's two kinds of bankruptcy that are possible for general citizens, Chapter 7 and Chapter 13. There is a Chapter 11, but that is just for businesses and one for farm owners. Filing Chapter 7 will rid an individual of all debt which is not due to training. Chapter 13 is unique in that all of your current outstanding debt will be combined together and reduced.

You will be instructed to help make small monthly payments that you can afford, and it will be divided between your lenders. The creditors won't be able to contact you for a period of up to 5 years. Declaring bankruptcy doesn't mean that you may have to sell your house or perhaps your car. Generally, you can continue to make your payments on these items after you file bankruptcy and manage to retain them. Your bankruptcy lawyer should be able to advise you which individual bankruptcy choice is effective for you and your situation.

Are You Able to Get an Auto Loan Following a Bankruptcy?

2011-12-05T19:37:00.000-08:00

Soon after your bankruptcy has been discharged, it's time to try to discover the best way to start rebuilding your credit. You might have already been asked to return your vehicle to the bank that you still owed for it. Or it may have been court docket ordered to be sold to settle some or all of your outstanding debt.

Buying a car out right might not be an option if you currently have wiped out all of your savings. Purchasing a new or used car from a car lot may be a fantastic way to begin rebuilding your credit history and to get yet another car to get to function and home. You may be thinking that it will be difficult to get an auto loan so right after filing bankruptcy, but it might be easier that you expected.

Before going to a dealership, check your credit reports to ensure that what is listed on there must be on there and that absolutely nothing is incorrect. Apply for a couple of credit cards that give credit cards to those with lower credit scores. They may have higher interest rates, yet keeping only a little balance on the account will raise your credit standing without getting you cornered in monthly payments that are out of control.

An automobile dealer that's mindful of your bankruptcy knows that you are not able to re-file for many years, so the courts are on their side, and they know you'll have to payout your loan. This causes them to feel safer with supplying you with a loan. Be straight up with the car dealer when you approach him or her. Look at cars which are affordable and within your budget.

It's good to know exactly what you can afford to spend a month. Do not let yourself get wrangled into a higher monthly payment than you realize you are able to make. Remember that you will also have a monthly insurance payment, taxes and interest that will need to be paid, so work those into your budget also. Buying a used car that is in good shape may be more beneficial to your finances when compared with trying to get a brand new automobile.

Never be afraid to tell the dealership that the car they're recommending is above your price range. When they continue to push you to buy the non-affordable car, you can leave the car lot and find another car dealership that is willing to assist you to restore your credit without over extending your financial budget. Once the dealer that you left sees that you're willing to leave as opposed to work with them, they'll be more prone to try to figure out a deal with you than lose your business as a whole.

When you've purchased the automobile that you want and can afford, attempt to pay a little bit more each month on the auto payment than is due. This will lessen the amount of interest you're having to pay over time. You will also be able to pay the car off quicker than you originally decided to.

Do You Really Need a Individual Bankruptcy Clarification Letter?

2011-11-29T14:28:00.000-08:00

Bankruptcy is a scary action to take specifically if you never expected to have to file for it and an event in your own life made filing unavoidable.

Once the bankruptcy procedures are over and your obligations have been discharged, you might still be unclear about what to do to get your credit score brought up. There are a few options that will get your credit back again on the right course.

One way to make this happen is to open several credit cards that are enthusiastic about opening accounts with individuals who have low credit scores. These could have high rates of interest, but keeping your payments manageable and not allowing your balance to get too high can help you rapidly rebuild your credit scores.

Investing in a car will assist you to rebuild your credit rating, but this will likely take a little while longer to rebuild your credit.

Make sure you stay within your obtainable payment range or perhaps you will be back where you started but lacking an option to assist you in getting away from wage garnishments if you should go delinquent in the payments.

Buying a house after a bankruptcy proceeding can help restore your credit, also. Lenders are probably not willing to offer you a loan until you have confirmed you're able to make installments, so getting a home loan may take a few years after you declare bankruptcy, to get the one that will not have incredibly high interest rates.

Before you are eligible for a loan you most likely are asked to give a Bankruptcy Explanation Letter to the potential financial institution. Lenders are more likely to supply you with a loan if they are certain that your bankruptcy had been due to a surprise life situation, like sudden unemployment or unexpected illness.

This shows to them that you certainly did not plan to file bankruptcy based on your bad financial management techniques, but was as a result of something that is away from control.

You will end up inspired to write a letter explaining why you filed bankruptcy in the first place, that it had been an isolated event, and just how you plan to keep from getting back into financial debt again so that you can not have to re-file later.

They might need you to provide documentation of medical bills or unemployment checks in order to backup what you have written them inside the letter.

You should provide all of the right information with regards to your situation and to be entirely open with your potential lenders, to enable them to make a fair assessment of your situation.

The Most Familiar Words Utilized in Regards to Personal Bankruptcy

2011-11-22T16:07:00.000-08:00

Consumer bankruptcy is a difficult decision to make in regards to your financial future. There are lots of kinds of personal bankruptcy that an individual could file. There are many terms also, that may be utilized in your bankruptcy procedures that you may not be informed about.

The term consumer bankruptcy individual refers to the person that will be filing the bankruptcy for defense against their creditors. The creditors are the individuals or companies that the bankruptcy filer owes. To discharge your debts is referring to the removing of debt that is owed to the creditor. Being delinquent means to be behind on payments to your creditors. You may hear the term assets.

This is making reference to any kind of property, such as land, cars, homes, shares or bonds which can be owned and are not having payments made on them. Your individual bankruptcy judge might designate that you have to sell these possessions off in order to pay off some of your debt to your creditors. Your bankruptcy lawyer will ask you to fill out a list of your bills.

These expenses are your monthly, quarterly or yearly bills, like home loan payments, car payments, grocery bills or childcare bills plus insurance, allotments for entertainment, clothing and gas. It's also possible to see the word petitioner used. This again refers back to the filer of the a bankruptcy proceeding.

There are two main types of bankruptcy that an individual can file. There is a Chapter Seven and a Chapter Thirteen. A company or corporation can file a Chapter 11 bankruptcy. There are several differences between a Chapter 7 and a Chapter 13. A Chapter 13 depends on whether the petitioner meets specific criteria.

In the event the individual does, the courts take all of the eligible dis chargeable debt, adds it together, minimizes it to a reasonable rate, then sets a small monthly payment the filer can pay and divides that repayment between the debts. These kinds of small monthly payments are designed to fit into the filer’s spending budget without making them proceed further in debt. These payments will continue with regard to 3 to 5 years. The particular creditors are not permitted to contact the individual during this time. The lenders are at the mercy of the courts judgements.

A Chapter 7 personal bankruptcy differs from a Chapter 13 in that all eligible debt is discharged and no longer owed by the filer. If you have guaranteed debt like a automobile that you are still paying on, you may have to go back the car to cover what is still owed if you are no longer in a position to keep paying. You can, nonetheless, petition the courts to help you to keep the car if you can financially afford to keep making the payments.

Consumer Personal Bankruptcy and the Purpose of Credit Card Debt

2011-11-12T14:44:00.000-08:00

In this challenging economy, many people are financially overextended and the initial things they quit making payments on are credit cards. Since credit cards are believed to be an unsecured loan, they are usually listed in bankruptcy filings. Additionally, since several consumers have a huge amount of consumer credit card debt, it is almost always involved in the choice to file for personal bankruptcy protection.

Credit card companies may be happy to work with consumers on cutting down their monthly installments or reducing the interest rate on the card, but typically they will want the money they are owed, leaving an individual feeling stressed by debt. That is not to say it is the credit card debt alone that is driving them to the verge of bankruptcy. Most often, those seeking personal bankruptcy relief also have an abundance of other debt. Though, in most instances the requirement for payments could possibly be the deciding aspect in your bankruptcy filing.

It can also sway the decision to file a Chapter 7 bankruptcy over the Chapter 13 filing. In Chapter 7, qualified debts are eradicated and with the unguaranteed status of unsecured credit card debt, other than losing card privileges and having it marked on your credit history, the competent debt will be removed.

With a Chapter 13 individual bankruptcy, the company will be paid back over the life of the individual bankruptcy ruling, and you will still lose the credit card privileges and the bankruptcy will be on your report. Chapter 13 requires you to make monthly obligations to a court trustee. In this instance, the court trustee will simply disperse the repayment to the creditors for you.

One issue that the personal bankruptcy court might use to refuse to discharge a credit card debt is if it is believed to have been elevated as a result of fraudulent activity. That is if you made several charges on the card of luxury items in anticipation of filing for personal bankruptcy, with no intention of paying for them.

The charge card company can resist the release of the debt and if proven the legal court can rule that you still must repay that loan, regardless of whether all other debts are deemed qualified and discharged. It's not very common however, and if you have a great bankruptcy attorney in Washington, they can help you if the situation does happen and you're not guilty of the accusation.

Prior to making any decisions regarding personal bankruptcy, be sure to chat with your bankruptcy attorney about options you've got or do not have. The bankruptcy lawyer will help you figure out whether you need to file for Chapter 7 Bankruptcy or Chapter 13 and can even help you with any type of bankruptcy forms you'll want to file.

Coping with Creditors and Collection Agencies After Filing Bankruptcy

2011-11-05T13:44:00.000-07:00

Choosing to file for bankruptcy is an enormous decision. Obviously, bankruptcy can assist you to have a new lease on your financial future, but it could also wreck havoc on your credit report. Hence, it can make it very challenging to obtain credit lines after your bankruptcy filing.

But, if you feel bogged down in working with creditors it may be the best choice. Chances are if you are filing for bankruptcy you have been receiving letters and phone calls from creditors reminding you that you owe their clients money.

When you finally seek bankruptcy relief and have given over the names and addresses of your loan providers to the bankruptcy attorney, you don’t need any kind of long drawn-out facts for the credit card companies or collection agency representatives. The bankruptcy lawyer can take care of everything after you file.

In many instances, even before the documents are filed and your credit card companies have gotten notification, you can simply tell the creditor on the phone about your bankruptcy proceedings.

You can offer them the name and phone number of your legal professional, but you do not need to answer other questions they could have. Actually, if you've retained an individual bankruptcy attorney, it is their job to deal with these items for you.

Understand that many collectors have obtained unpaid debts from your lenders and may tell you a number of stories in order to collect something from you. Because they now own your debt, if they cannot collect, they lose money.

It is likely they have purchased the debt for about half of what you borrowed from and may well make you a deal to settle the debt for less than you earlier owed and if they are successful, you'll have that debt stripped away from personal bankruptcy, but that is ordinarily not to your advantage.

Keep in mind you are declaring bankruptcy because you can’t settle the debts and unsecured debts will likely be written off along the way. Your best bet is to simply and pleasantly tell them about the individual bankruptcy and offer the name and number of your legal professional before swiftly ending the discussion.

Its also wise to keep tabs on your contacts with your debt collectors just in case they continue to call you right after being informed of your imminent personal bankruptcy. After they have this info, they should stop calling.

However, if they continue, it is usually considered harassment, which can be against the law. Consequently, you'll want to chat with your legal professional if your creditors continue to call you even when they have your lawyer's information for contact purposes.

The Top 5 Questions Regarding Customer Individual Bankruptcy Protection

2011-10-27T19:26:00.000-07:00

If you are thinking of personal bankruptcy, you could possibly talk to a personal bankruptcy legal professional to learn if you are skilled, which individual bankruptcy you happen to be skilled for along with just what procedure you have to decide to try to get yourself a successful end result.

While choosing a personal bankruptcy attorney folks are usually asked if they have questions. However, after they return home they generally remember. These questions may pertain to exactly what protects they'll have at hand as soon as they get declared as having a individual bankruptcy. 5 most frequent questions include:

- Could my creditors still try to get payments from me?

The small answer is absolutely no. Just before the individual bankruptcy actions and authorization through the court, collectors may possibly continue a series of endeavours, nonetheless, you can send those to your current legal professional. After a competent debt is put under a personal bankruptcy, you've got no obligation to repay your credit card debt. And creditors might not make any initiatives to collect the particular financial debt.

- Will all of my obligations be released?

Not always. Regardless if you might have followed all the individual bankruptcy rules, the release will simply affect obligations to be paid along with were listed when you filed for your bankruptcy. Obligations a person incurred following the individual bankruptcy as well as lending options acquired below fake circumstances, won't be eliminated.

- What are short-term attributes of personal bankruptcy?

In the time your personal bankruptcy filing you might be shielded from creditors with the law defending you and your home. Creditors should prevent getting in contact with you and whenever a suit continues to be recorded with a creditor, it has to quit. Furthermore, credit card companies cannot get property which was accustomed to safe financing through the process.

- Simply what does the term discharge mean?

Within personal bankruptcy, a discharge refers back to the elimination of qualified debt that have been shown through a bankruptcy proceeding filing. Essentially this means you have no requirement to fund virtually any financial obligations which are legally introduced throughout individual bankruptcy.

- What happens to your residence?

Oftentimes, this will count on the property and its valuations. Within a Chapter 7 personal bankruptcy creditors having title to your home as equity, may take the house and dump that to recuperate some of the income still owed.

Getting Credit Soon Right After Filing for Bankruptcy

2011-10-24T11:54:00.000-07:00

Trying to get credit after you seek bankruptcy relief has been long reported as being extremely difficult, but it's not absolutely impossible.

When applying for credit you need to be upfront with your prior financial problems, which includes bankruptcy, but some creditors look at the reason why someone declared personal bankruptcy and make allowances.

Home interest rates for someone that has gone bankrupt will probably be higher, usually at the highest legally allowed limit. This can make repaying the credit lent just a little tricky. However, creditors commonly don't mind given that they also know there is a time limit in which you could claim bankruptcy again.

Of course, if you go delinquent on the loan then you will be forced to pay and they are going to have the law on their side.

So, most of the high risk creditors have virtually no problem taking on a consumer who has just recently filed for individual bankruptcy, as they know you will be made to pay no matter what.

After you go through individual bankruptcy, your credit will be minimal and you'll have to start rebuilding.

Keep in mind that your bankruptcy will stay on your credit report for 10 years and any positive notations made in your report will show upcoming creditors that you're making the right steps to get your financial life back.

Several credit card companies may be ready to take a risk on you fairly immediately after your personal bankruptcy, but the high monthly interest might not be worth the effort.

Some companies offer pre-paid credit cards that work similarily as your bank’s debit card, however in these situations the businesses supplying them usually report your positive results to the credit bureau.

You will have to open a merchant account with them and your available credit will be based on the account balance. You need to make monthly premiums and maintain the first balance in your accounts, but the appeal is your payments will be given to the credit bureaus assisting you to rebuild your credit.

Remember, it's a wise idea to start repairing your credit very quickly after you've filed for bankruptcy. However, you'll want to do so in a fashion that doesn't cause you to end up back in the sticky financial circumstances you were in before the bankruptcy process began.

There is absolutely no reason to endure the entire bankruptcy process, only to discover yourself deep in debt once more. Talk with a financial advisor or even your bankruptcy attorney to figure out what the best course of action is for you. Often, they will be happy to give you responsible tips about rebuilding your credit.

How Corporate Bankruptcy Have An Effect On Investors

2011-10-19T16:42:00.000-07:00

Making an investment in the stock market, or through partnerships, is one of the most popular methods for people to invest their cash. When doing so, they invest in hopes of watching their funds grow, as the organization in which they invest grows and becomes more popular. However, occasionally the corporation fails to perform as expected and ends up declaring bankruptcy, losing all of its value in the marketplace. In such cases, all of your invested money is lost along with it.

Obviously, generally people know investing in the stock market can be quite risky. When organizations seek bankruptcy relief, usually under Chapter 11, they can be seeking to reorganize their financial debt with bankruptcy protection supplying them enough time to get their financial act together again. Obviously, companies want to come out of bankruptcy in a better financial position. But, most often the real losers are the types who invested in the corporation.

This being stated, investors will have a few ways they might potentially reclaim their losses. This is all depending on the investment firm they employed to buy into the corporation, plus the advice they had been given on what they made the choice to invest. It's important to realize the danger of this kind of investment. But, many also depend on quality advice from agents and consultants to provide correct specifics of companies in which they are considering investing.

Occasionally, when the investor can prove his advisor gave him guidance while knowing the company would definitely fail, they could file a claim against the advisor. On top of that, those shelling out financial advice shouldn't have a vested involvement in any companies for which they offer investment recommendations. If they do, they're required to give the information to any prospective investors.

This becomes tricky when funds are poured into a company, helping to make the stock price increase. If an advisor convinces a few investors to buy into the business and then sells their particular shares of the corporation to obtain any profit, it could cause the value to take a significant fall. This type of activity is also against the law and the investor could regain some of their losses.

Before you choose to invest in any type of company or stock, it is critical to know everything about the risks of corporate bankruptcy. Much like individuals, businesses can declare bankruptcy. This can be devastating if you've invested in the business before they filed.

Is Child Support an Important Part of a Personal Bankruptcy?

2011-10-14T18:55:00.000-07:00

Certain kinds of bankruptcy allows financial obligations to be wiped out. However, debts like child support will not be dischargeable under the recent federal bankruptcy laws.

Despite the fact that child support payments are requested by state-level courts, typically through the county wherein the individual lives, federal law has previously held that a financial debt created by late child support payments aren't subject to being released through individual bankruptcy.

Whether or not the petitioner meets the many other requirements to file for Chapter 7 personal bankruptcy, the debt for child support isn't going to be eliminated via the court. There may be extremely rare hardship cases where the court does agree to it, but each petition is taken care of on a case-by-case structure and in a majority of actions, federal bankruptcy judges are unwilling to erase any past child support financial debt.

Absentee mothers and fathers, legally bound by a state court to fork out child support, have a very few options available with which to ask the state court to adjust the quantity of support they are legally instructed to pay.

They can petition to lower the amount of support based on a drastic decline in income or for a number of other reasons that reflect a lack of ability to pay the current amount of support. It is likely that even if the state judge grants a decrease in child support payments, any arrearages that have gathered prior to the diminished amount for support will remain as a debt to be paid by the parent.

Typically, past due support and succeeding payments aren't dischargeable or considered under Chapter 7 or Chapter 13 bankruptcy. If the person files for Chapter 13 bankruptcy and has overdue child support, that amount, unlike most other debts, will be settled at the full amount necessary on a monthly basis.

Additional bills will be paid out at a diminished monthly amount depending on the amount capable of being paid by the petitioner, but child support most likely will be paid in conjunction with the court-ordered payment quantity. Needless to say, the court trustee could decide the petition lacks sufficient income to meet the repayment responsibilities and deny a Chapter 13 personal bankruptcy petition.

On the whole, you need to remember that usually, child support will not be considered in personal bankruptcy cases. People who feel they are incapable to pay their child support repayments should contact their attorney to determine if they should petition for a cheaper payment amount.

Nevertheless, in many cases, unless there is a drastic decrease in income or other excessive hardship situations happening, it is improbable child support payments will likely be altered the slightest bit. Recall, these laws are intended to protect children and to make certain absent parents were made to be fiscally accountable for their offspring, not to punish those in financial trouble.

How Divorce And Individual Bankruptcy Are Interconnected

2011-10-06T16:16:00.000-07:00

It's really no secret that finances can be the cause of marital troubles, but some couples can get their financial life back together if they file bankruptcy before divorce. For lots of people there remains an adverse stigma about individual bankruptcy, but if financial troubles are part of the dissension within their partnership, personal bankruptcy might make dividing up any marriage assets simpler.

Typically, before a couple experiences their divorce, they are going to sit with their legal representatives to ascertain how any assets, as well as liabilities are partioned. Depending upon the sort of liabilities they have accrued over their marriage, filing for bankruptcy, as a pair, can decrease the volume of liability one or both partners will shoulder through the proceedings. However, if one partner has significantly more individual liability than the other, that individual could possibly consider bankruptcy alone.

That's where it can get sticky, as the individual bankruptcy court may think that bankruptcy by only one of the partners is only an effort to hide assets that might otherwise be susceptible to the division of any assets. Due to the fact child support, spousal alimony and many other financial responsibilities can't be cleared during individual bankruptcy, couples find it quicker to go through with their personal bankruptcy before they declare divorce.

The moment bankruptcy has been finished, the couple will probably have fewer assets to divide in their divorce. Furthermore, some lenders think about the bankruptcy and future divorce as mitigating conditions when either applies for a loan. Not surprisingly, that doesn't mean credit can be easily obtained, considering that the bankruptcy will go on both credit reports, but some lenders are a little more understanding in this scenario.

Considering that credit bureaus must maintain separate credit rating files on both companions, if one files for bankruptcy, it may possibly not affect the other's credit worthiness that drastically. Additionally, an individual bankruptcy attorney can answer most questions on filing before a divorce, but Chapter 7 might not be an option if their earnings are high enough to support payments for a Chapter 13 filing. A pending divorce and the possibility of reduced assets aren't usually taken into mind for either type of bankruptcy filing.

In the event you and your partner are in financial trouble and are thinking about bankruptcy before you divorce, it's crucial to seek assistance from a certified bankruptcy legal professional. A bankruptcy legal professional can help you understand what your best next steps are and help protect you from making the wrong move, in the wrong order. To give yourself the very best chance for bettering your financial situation, consider a professional bankruptcy lawyer before filing for divorce or personal bankruptcy.

The Bankruptcy Filing Process

2011-09-25T20:36:00.000-07:00

For many people the process of declaring bankruptcy may seem exceptionally complicated and for the inexperienced person, it is. However, an experienced bankruptcy lawyer can guide you through all of the steps required to insure that when you get to court, everything goes smooth. The process is much more detailed than merely proving to the court you can't pay your bills and with fresh federal bankruptcy law changes, it can be extremely burdensome to file without the assistance of an expert.

When you finally decide you might want to file for bankruptcy, contact an attorney who concentrates on bankruptcy law. They will actually figure out, based on the amount and type of your debt and existing income, whether you qualify for Chapter 7 or Chapter 13 personal bankruptcy. Those people who are unemployed or have constrained income will probably be able to file Chapter 7, meaning all unsecured debts might be wiped clean. When filing for Chapter 7, some the secured debts will also be reduced, but it really does depend on the kind of debt or collateral held.

You will then need to list all of your current assets, including any pending earnings such as lottery winnings or payments due from legal settlements. Your lawyer may also have you fill out loads of paperwork needed to file to the court. Furthermore, courses on financial management and budgeting will also be expected, before and after you file, before the court can finish the procedure, helping you to begin with a clean financial slate.

People that don't qualify for a Chapter 7 personal bankruptcy will likely have the choice to file for a Chapter 13 bankruptcy, allowing them to pay monthly payments to a court trustee to eliminate the debts during a period of a few years. Under a Chapter 13, you'll be allowed to keep all of your property and assets, even your secured finance, and lenders will have no choice but to simply accept the terms established by the court trustee.

Regardless of what type of personal bankruptcy your attorney determines suits your financial condition will be filed to the court. On your appearance date, you will be required to show up in front of the individual bankruptcy judge and, after responding to a few questions and providing your attorney has filed the required forms, you will have about six months before your bankruptcy is completed.

Bankruptcy And Mortgages

2011-09-18T15:33:00.000-07:00

Some people in dire economic trouble may be unwilling to seek bankruptcy relief, based on the idea that it will be nearly impossible to buy a house after declaring bankruptcy in Oregon. It might be more and more difficult to find a lender prepared to take the chance on you, and the home interest rates could possibly be higher. But, it always isn't hopeless to buy a house after bankruptcy.

Upon having filed for personal bankruptcy (whether Chapter 7 or 13) there are several steps you need to take if you hope to obtain a new home. Understand that after a individual bankruptcy your credit worthiness will take a very good hit, though if you had the need to file, it was very likely already pretty low. Most credit files will show signs and symptoms of your bankruptcy for at least ten years. From a lender's point of view, your history signifies that you are a low credit score risk and approving a loan sufficient to buy a house would not seem to be in their utmost interest.

The very first thing you ought to do is work on cleaning up your credit report. Following the discharge of your personal bankruptcy in Portland, obtain a copy of your credit profile and ensure that anything on it that really should not be there is taken away. You need to contact all three credit reporting agencies to make this come about. The Fair Credit Reporting Act offers specific rules so you might maintain an accurate report.

You can decide to rebuild your credit by applying for a charge card and paying it punctually, each month. Yes, the interest rates are going to be higher than you will be used to, but the payback can be a higher credit score. You can even attempt to obtain installment loans via various agencies, and even more importantly, if you are able to acquire this kind of credit, make sure every payment is made promptly.

It could be somewhat frustrating to get your credit report cleaned up, but you will need to show lenders it's easy to make payments promptly and you deserve a home loan. It can take up to two or even 3 years to build up your credit rating before lenders might be willing to supply you with a mortgage. So, be patient along the way and contemplate starting to rebuild your credit the moment after your individual bankruptcy has been approved. Planning ahead will give you the best chance for a great rate later on.

Individual Bankruptcy Regulations In Washington

2011-09-14T12:06:00.000-07:00

Quite often, bankruptcy laws stick to federal regulations, with most states also toting their own particular rules as well. Those hoping to declare themselves bankrupt in the state of Washington ought to talk to a bankruptcy lawyer experienced not just in the bankruptcy course of action but one who is likewise familiar with the state regulations regarding asset exemption.

The initial step your Washington bankruptcy attorney will do is obtain your information and help you determine whether you wish to file for Chapter 7 or Chapter 13. Chapter 7 is considered the most common variety that allows those that have few assets to shed unsecured debts like credit card and medical bills. If you have a car loan, mortgage or some other secured debt, Chapter 13 will allow you to maintain your main assets.

In some states, like Washington, you can find exemptions placed on specific items like clothing which won't be sold to fulfill debtors if you seek bankruptcy relief. Considering that the exemption amounts can be different between the state and federal amounts you, through the help of a bankruptcy legal representative, can determine which ones offer the most gain.

For instance, the Homestead Exemption protects up to $125,000 of your home's value and domestic furnishings up to $2,700 or $5,400 for a couple, may very well be exempt from being taken by the court and marketed to satisfy part of your fiscal troubles. Retirement funds, pension plans and around $2,500 for your car or truck can also be exempt from individual bankruptcy. If you are using specific tools for your employment, up to $5,000 can also be claimed as an exemption.

The one thing to look at is that the bankruptcy court will look closely at those who transfer to the state immediately before filing bankruptcy in the state of Washington. Persons who move into the state to take advantage of the larger exemptions than may be available in their preceding home state will probably be denied bankruptcy security.

Keep in mind, if most of your assets won't be included, Chapter 7 is likely to be your best choice. Even so, for those who have more assets than what the courts permit, Chapter 13 stands out as the way to go. Your bankruptcy attorney will help you discover how to ease your debt load, to help keep your property. A knowledgeable bankruptcy attorney can help you figure out what your next move ought to be and give you the very best possibility of being approved for bankruptcy. Thus, before you make any decisions about your individual bankruptcy, contact an experienced bankruptcy attorney.

The Brand New Changes In Bankruptcy Regulations

2011-08-30T19:16:00.000-07:00

You won't notice any laws which state you must have legal representation when filing for bankruptcy, but it's ordinarily a good idea to have a specialist in your corner. People considering filing for bankruptcy will be much better served by contacting a qualified and experienced bankruptcy lawyer, who is well versed in the new laws associated with federal bankruptcy. A number of the laws are now being transformed, due to changing times. Most frequently, the changes have allowed people who find themselves declaring bankruptcy to protect their assets. But, these modifications also carry with them many additional responsibilities for the individual.

Before wide ranging changes were made many years ago, people could declare bankruptcy, go through the court proceedings and walk away free and clear. However, this process allowed them the opportunity to improve their personal debt and do everything once again seven years later. There was no requirement for them to learn improved financial management and no motivation to take control of their financial lives.

Now, individuals looking to declare themselves bankrupt are instructed to attend two separate classes on financial management. They must attend one just before they file and one prior to the final discharge of their personal bankruptcy, to help them control their spending habits. Courses they take must have been authorized by the court to confirm the classes were not established for participants to merely go through the motions to satisfy the court’s requirements.

Lots of the bankruptcy code changes were initiated by the lobbying initiatives of creditors, who often miss the opportunity when a person files for bankruptcy. Specifically, credit card issuers and medical providers, whose debts are usually considered unsecured debt and have no recourse in getting collection through collateral repossession, made an attempt to get new laws approved. While there were great changes in the laws, with the aid of a bankruptcy lawyer anyone can get their finances in order.

The latest changes make it quite difficult for individuals to file for Chapter 7 if they do have an income, which forces them into Chapter 13. In Chapter 13, debts they have accrued are repaid through monthly premiums handled through the federal bankruptcy court. It commonly requires 3 to 5 years for all of the debts to be repaid under this type of bankruptcy, but the debtor preserves ownership of their personal property.

Speak with a bankruptcy legal professional about your options, before filing for bankruptcy. A knowledgeable bankruptcy attorney can help be certain you're filing out the appropriate paperwork and filing for the most appropriate kind of bankruptcy.

The Bankruptcy Basics You Should Know

2011-08-25T13:13:00.000-07:00

If you are having trouble maintaining payments or expenses of any sort and are contemplating filing for bankruptcy, you should understand the basics of bankruptcy. When you study individual bankruptcy options and start to learn what bankruptcy is all about, the data you gather will help you make your decision. Though talking with an experienced bankruptcy lawyer will help you make the final choice, knowing the basics will help you to find the right legal professional. When you choose the best lawyer, he or she will be able to help you through the form of bankruptcy you are qualified to file.

The two different types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is used usually by people with restricted or no income. There's established levels of personal property that's exempt from being repossessed and sold through the bankruptcy court. Basically, an owned automobile, personal belongings and clothing are certainly not usually lost during bankruptcy.

There's a good possibility you will lose a car or home if you have loans on them, however. In these cases, the lien holder will recover the property that has been used as collateral for the loan. All other unsecured loans (credit cards, medical bills) will be eliminated in a Chapter 7 bankruptcy.

If you want to keep all of your personal property and meet income standards, you may need to consider Chapter 13 bankruptcy. With this type of proceeding, your entire debts will be consolidated into one payment amount. You'll make the payment to the bankruptcy court trustee, who pays your creditors. At first, your payments will be broken down among those with the highest balances. However, all of your creditors are going to be paid.

With a Chapter 13 bankruptcy, any past-due payments to your creditor, including utility bills and medical bills, will undoubtedly be included in the total amount you owe and will also be paid via the bankruptcy plan. Normally, the plan is going to be for a period of 3 to 5 years. If your wages are sufficient to supply basic living expenses and pay the monthly amount of the loan, you can get Chapter 13. If your income doesn't allow the minimum payment to be made, you are going to be rejected and need to file a Chapter 7 bankruptcy.

Bankruptcy isn't a good option for everyone. However, it might be beneficial for others. If you are interested in declaring bankruptcy, working with a qualified bankruptcy lawyer can help you have a much better chance at getting the bankruptcy approved.

Filing For Bankruptcy May Affects Your Emotions

2011-08-17T12:56:00.000-07:00

It can be a challenging decision to file for individual bankruptcy, due to the stigma the process has constantly held. Today, as a result of common nature of declaring bankruptcy in the wake of a challenging economy, the choice is becoming much easier to make. With a few new rules in place on who can file, and the sort of bankruptcy they're allowed to file, lots of people are finding their lives back in their control whenever they do seek bankruptcy relief. Bankruptcy is allowing some individuals to navigate through these difficult financial times, far more gracefully.

Filing for bankruptcy is a personal choice and those who qualify to do so, may feel ashamed. This is especially the case when they discover the filing will be publicized in the newspaper, as mandatory by law. However, the judgment long associated with bankruptcy has lessened during the past few years, as people have lost jobs or their house payment has skyrocketed. With medical and insurance costs rising rapidly, even medical costs may cause people to fall behind.

You'll find essentially three emotions in play every time a person files for bankruptcy, beginning with apprehension they will be viewed as someone that cannot pay their bills. This can be especially troubling for someone who, until not too long ago has always paid by the due date and never missed a payment at all. Most often, the next feeling is of depression. Some become discouraged, simply because see themselves as a failure in the areas of money handling and budgeting.

When they have made it through the first early stages and have gone through the bankruptcy process, they generally feel a degree of relief. It may be liberating for them after they realize they no longer owe on any of their previous bills. This feeling can be dulled by lingering feelings of depression, but in most instances the lack of calls from bill collectors and threatening letters can give way to letting them feel additional relief knowing they made the best bankruptcy decision.

When most have managed to make it through these emotional stages of personal bankruptcy, a feeling of determination often takes over as they determine they will never find themselves in the same position again. The financial responsibility measures they learn as they proceed through bankruptcy might help them budget and discover methods to hold the line on costs. This will help to ensure their financial stability in the future.

When you can find yourself with no other choice than to file for bankruptcy, it is necessary you understand that while the procedure may be embarrassing, it will help you work toward a better financial future.

What Your Bankruptcy Lawyer Needs From You

2011-08-02T14:08:00.000-07:00

If you are employing a bankruptcy lawyer, you should make sure all of the paperwork they request is finished in an accurate and timely manner. Following your first meeting with the lawyer or attorney, they will give you a wealth of documents you will need to fill out.

You will need to fill out all of the information relating to your cash flow, whether it is earned or unearned earnings such as retirement or disability as well as any gifts, prizes or prizes that you have received in the immediate six months before declaring bankruptcy. Earned income consists of anything you receive from employment and all sources of income will have to be verified.

Personal assets will also need to be listed which includes any vehicles or property you may own, as well as those on which a loan or mortgage is owed. Though many personally owned items can be exempt from being confiscated and sold to help you reduce your debt, your lawyer or attorney can help show you through which possessions will be subject to forfeiture.

Your everyday living expenses will also be documented, with already court recognized limits and allowable expenses being considered. Employment will additionally need to be verified in addition to any unemployment compensation you may be receiving. There are a couple of things to keep in mind when filling your bankruptcy paperwork, which includes all income and expenses you declare should have documentation confirming all of the numbers you claim. Remember, you're reporting these items to a court of law. Therefore, every thing must be totally accurate and truthful.

Claimed expenditures will have to be supported by recent bills and receipts for the expenses that you claim have been paid. In terms of income verification, pay sheets or documentation from unearned revenue sources must be provided. It is critical to be truthful, as the personal bankruptcy court has access to your main income sources and can opt to independently uncover all bank holdings, retirement accounts or other varieties of savings.

Although you can most certainly file for bankruptcy without legal aid from a lawyer, you ought to work with a bankruptcy attorney who can provide you with the loads of overwhelming paperwork. If you turn in files to the bankruptcy court that's incomplete, erroneous or full of untruths, your case will be thrown out and you won't be granted your bankruptcy. Your time will be lost and your chance to reboot your financial future will have passed unsuccessfully.

Thus, it is advisable to come prepared to your bankruptcy attorney any time you meet. They can help you, if you permit them to do so. If you do want them to work at their greatest potential for you, be sure you follow their directions and offer them with the documentation they need as soon as possible.

Can Bankruptcy Wipe Health Care Debts Away?

2011-07-19T11:44:00.000-07:00

If you have had a previous injury or disease, it's likely that the medical bills have already started skating in. As depressing as it can be, lots of people declaring bankruptcy have accumulated heaps of debt for healthcare bills and are not able to keep up with bills on them and most of their other bills.

Sadly, at least for the medical service providers, is usually that medical bills to medical professionals and medical facilities are usually considered as unsecured debt and provided everything included as well in a bankruptcy filing is correct, will commonly be wiped clear in a Chapter 7 bankruptcy filing.

People seeking to get out of debt that feel a moral responsibility to pay medical providers have a handful of options to pay their bills, like filing Chapter 13 personal bankruptcy, if they qualify. Yet, when declaring bankruptcy all outstanding bills must be listed and will end up part of the personal bankruptcy.

Every creditor can file with the bankruptcy court in hopes of obtaining a part of any assets the bankruptcy court may seize and then sell as a part of the proceedings. But, in a majority of cases the holders of debt for health care expenses write off the amount owed. Certainly, medical providers can easily refuse to treat anyone who has filed bankruptcy including medical bills in the past. Emergency service will normally be available by unexpected emergency health care providers to a sufferer after they have placed their bills in bankruptcy, but they also can refuse any non-life threatening products and services.

People that do file Chapter 13 personal bankruptcy could eventually pay off all bills, with a court trustee secured payment plan. It could take three to five years to extinguish all of the bills, according to the amount of the debt and the filer's income. Yet, the doctor and various medical providers are reassured of getting paid, provided the individual maintains their payments to the court.

Undoubtedly, many medical procedures of aesthetic nature usually are not considered unsecured loans. This is why many medical providers do not accept payment options on certain procedures. Regularly, these kind of procedures require payment beforehand because there's no collateral on their financing.

If you have found yourself overwhelmed with thousands of dollars in medical bills and struggle to make installments on them or your other bills, speak to a bankruptcy lawyer right away. The longer you dismiss your debt, the more troublesome it can become. Go over your financial options with a bankruptcy attorney to be sure bankruptcy is the proper answer for your problems and after that take action to get yourself on the road to being free of debt. A personal bankruptcy attorney can also help you with all individual bankruptcy filing paperwork, if you choose to file Chapter 7 or Chapter 13.

Could Anyone Declare Chapter 7 Personal Bankruptcy?

2011-07-12T12:00:00.000-07:00

If you're considering filing for bankruptcy, it is critical to know all about the two most commonly encountered types. Chapter 7 and Chapter 13 are the pair of most often used varieties of bankruptcy and there are actually certain requirements that must be fulfilled to be able to file either type. People hoping to completely wipe out their debts and essentially start their financial life once again while losing past debts, may wish to file for Chapter 7 bankruptcy. Anyone who meets the regulations for total debt release can file for this type of bankruptcy.

Before a Chapter 7 bankruptcy may be completed, the court system looks at the petitioner's assets and any future income. The petitioner will need to show that their recent income level is far below their ability to pay their debts and that their upcoming income anticipations make it unlikely they will be in a position to do so in the near future.

Moreover, the court will also look at the worth of assets that are beyond the allowed amount for the cost of living. Basically, those with earnings around the established poverty level who have few if any assets that may be sold to repay creditors will be permitted to file Chapter 7 bankruptcy.

Anyone can file for a Chapter 7 bankruptcy review, but most legal professionals will make sure the petitioner's assets and income are within the regulations to ensure they will not be denied.

Additionally, it may take over six months following your bankruptcy hearing before the debts are discharged and if the petitioner should happen to come into a substantial amount of cash while waiting for discharge, winning the lottery for example, that cash can be seized to repay some or all of the debts indexed by the bankruptcy.

A professional bankruptcy attorney will help their client by reading through all of their fiscal reports to find out if they are qualified to apply for either Chapter 7 or Chapter 13 bankruptcy. The petitioner must also attend classes, authorized by the court, on effectively and reasonably handling their finances.

It could be extremely helpful to talk with a personal bankruptcy attorney before you file, to be sure you're doing the right thing. A legal professional can help you wade through the mounds of paperwork and information required to file for bankruptcy and ensure you're given the greatest chance possible to be eligible. If your bankruptcy file is imperfect or if mistakes exist, your case will be thrown out and you'll be denied individual bankruptcy altogether. So, give yourself the top chance for good results with a bankruptcy lawyer.

Bankruptcy Guidelines For Oregon Residents

2011-06-28T19:36:00.000-07:00

If you're thinking about declaring bankruptcy in Oregon, you should understand there are many regulations you should become mindful of. The forms to submit for bankruptcy are incredibly lengthy and there are unique procedures you have to follow so your forms are acknowledged by the court.

Not like many local courts, when a person files for bankruptcy and changes their mind, it is not a quick procedure to drop their case. The bankruptcy court will make the determination if a case goes ahead, even with the debtor’s request to quit the proceedings.

Whenever someone files for bankruptcy in the state of Oregon, they'll place the proceedings in the federal bankruptcy court that's got jurisdiction in the state of Oregon. All of the federal bankruptcy procedures and laws need to be followed. Pre-filing consumer credit counseling instructional classes, available with the court’s approved companies must be done before filing. The same is true for debtor education sessions which are required after the court hearing on the relief of debts.

Figuring out whether or not to file for bankruptcy is a choice made mainly by the individual and their legal representative. Additionally, the conclusion to file either Chapter 7, during which most debts could be eliminated, or Chapter 13, wherein the debtor agrees to a repayment plan approved by the bankruptcy court and carried out by a court-appointed trustee is yet another decision a person and their lawyer or attorney can make together.

When declaring bankruptcy under Chapter 7 bankruptcy in Oregon, a number your possessions will be exempt from being seized by the court while some may be taken by the court and purchased to help pay creditors. With a Chapter 13 bankruptcy it will be easy to retain all of your current possessions, but will probably be entered into a repayment plan to settle your debts. Generally, plans of repayment range from 3 to 5 years long and all debts are paid through the court-appointed trustee.

The choice on which type of bankruptcy you'll file will probably be made by you and the lawyer or attorney, depending on your income in addition to the sort of debts you have. While many unsecured debts can be discharged through Chapter 7 personal bankruptcy, the sum of your assets along with your income at the time of the filing, will decide which variety of bankruptcy you are eligible to file. Thus, because the two kinds of bankruptcy are incredibly totally different from one another, you'll want to ensure you're at ease with the decision you make.

Prior to your bankruptcy filing, it's to your advantage to contact a personal bankruptcy lawyer and be well informed about Oregon bankruptcy legislation and procedures. Declaring bankruptcy is a serious course of action and you'll want to make certain you're making the best choice for your financial future, before you act. By working with an expert lawyer or attorney, you can be sure you're following the steps you need to follow, to obtain the results you desire.

Individual Bankruptcy Rules and regulations You Need To Understand

2011-06-21T13:06:00.000-07:00

Individual bankruptcy can provide a chance to get your life back on track and to offer you hope for your economic future. Due to the fact bankruptcy cases are addressed via the federal court in your area of residence, you'll want to know the federal bankruptcy regulations before you decide to file. There are a few differences between federal regulations and other guidelines in each state, but if there's ever a contradiction between the rules, federal rules take precedence. It is advisable to study the differences before filing.

To be certain your bankruptcy filing procedure is perfect, it is vital you work with a skilled bankruptcy attorney. The Oregon bankruptcy lawyer you have chosen could advise you about the regulations for individual bankruptcy, including any state limitations which might be aside from the federal rules, and will make sure that the correct paperwork is effectively done and filed before being submitted to the legal court.

Due to numerous regulations covering federal bankruptcy, it is best to have an attorney prepare your filing. Sure, you can submit the paperwork yourself, however, if you make a mistake it could set you back lots of time or even end in your case being thrown out for bankruptcy. As a result, hiring a qualified attorney can help you ensure you're not making any mistakes.

Bear in mind, there is absolutely no law which declares you need to have an attorney at law to file for bankruptcy, although the intricate nature of the act results in a recommendation of using a legal representative. Also, if your filings aren't completed to the expectations of the courtroom, your filing might be thrown out of court.

Anytime you file for federal individual bankruptcy there's no process for dealing with a state court, however, many states often have marginally different regulations for bankruptcy. Guidelines that have an impact on the style of debts that might be eliminated through bankruptcy might be completely different in certain states, which means that a debt eligible for being wiped out in one state may not be in another state.

Fortunately that if you are currently getting calls or letters from credit card companies, once you begin working with a Vancouver bankruptcy lawyer, you'll be capable of forward each and every call and correspondence to them. As soon as they have been informed of the imminent procedure, any method of contact should proceed through your lawyer.

Nonetheless, you should make sure that you maintain communications with the attorney to insure your bankruptcy filing is made without delay and that you don't miss any filing due dates. There is a chance that your individual bankruptcy petition can be dismissed if you can't allow your attorney to meet all deadlines recognized by the court.

For individuals who really need it, bankruptcy could be the light at the end of a personal debt filled tunnel. Nevertheless, the process for filing and becoming approved can be very long. Utilizing the services of a bankruptcy attorney, you can make certain you're getting through the process as quickly as possible.

Personal Bankruptcy Education Courses Necessary for Filing

2011-06-13T16:47:00.000-07:00

Opting to seek bankruptcy relief might be a fast decision, but the course of action absolutely takes a while. There are various things you will need to do before you can file, in many cases. Before a person can seek bankruptcy relief they are required to complete consumer credit counseling classes to enable them to understand the importance of taking care of their debts.

This class has to be taken right before filing for bankruptcy and the debtor will be provided a certificate of completion that must be submitted in their bundle whenever they file. Although this is not something which has been required in previous times, it can be a requirement in most instances today.

Individuals filing for bankruptcy also needs to complete a debtor education training course once they seek bankruptcy relief, before their personal bankruptcy will be wiped away by the federal court. These courses are meant to educate the new bankrupt person on how to manage their money to protect yourself from ending back in very similar circumstances. Even those filing bankruptcy depending on their debts from their company, including if the debts come from the organization, they are still required to take the bankruptcy education classes.

Each state has a list of locations and firms which have been recognized by the federal bankruptcy court to provide bankruptcy instructional classes and every one of them must issue a certificate of completion for everybody who adequately finishes the classes. Unless of course notified in the beginning, certificates of completion will be presented to attendees without charges over the price of the class.

It is critical to not let the credit counseling class instructors sway your decision in regards to declaring bankruptcy. It's the decision of the individual to decide if they want to file Chapter 7 or Chapter 13 bankruptcy, with help from their attorney. As soon as the class is done, the person supplies their attorney at law the certificate of completion, which makes it a part of the filing paperwork.

In the past, some suppliers of bankruptcy education instructional classes would hand law firms blank certificates permitting the Oregon bankruptcy attorney to have certification essential for bankruptcy by typing in their clients’ name without the client truly participating in any classes. This practice is against the bankruptcy court regulations and rules. The instructional classes are intended to help individuals who have had trouble controlling their finances before to prevent them from duplicating the issues that made them need the relief offered by bankruptcy.

If you intent to filing for bankruptcy, it is necessary for you to discover where one can take a bankruptcy education class before you file. When you're working with an attorney, they can often help you to get information about these classes. Sure, you can help wash your slate clean when you file for bankruptcy. Nevertheless, it is vital for you to also discover ways to avoid engaging in debt yet again and learn how to handle your money more efficiently for future years.

Actions Toward Filing Bankruptcy in Oregon

2011-05-27T13:18:00.000-07:00

If you are thinking about filing for bankruptcy, it's a pretty major decision. It really is such a big deal, you won't ever want to move forward with bankruptcy unless you positively understand all your options. If you are considering declaring bankruptcy, there are many factors to consider.

The very first decision you must make is whether or not you file Chapter 7 or Chapter 13 bankruptcy. The simple and easy difference is with Chapter 7, the vast majority of your unsecured debts are going to be eliminated, along with particular secured debts. Having said that, your home mortgage and any auto loans will likely result in you being forced to turn them over to the creditor, based on their value.

Of course, in case you have a job you possibly will not be eligible to file for Chapter 7 bankruptcy. If this is the case, your bankruptcy lawyer will help you file for Chapter 13 individual bankruptcy and can help you with any paperwork you should fill out. If you file Chapter 13, your entire debt is totalled, combined and is payed off through a court-appointed trustee.

Typically, you'll have several years to pay your debt off, in timely repayments to the trustee. They will then send the funds to the proper creditors, making your way of life less complicated.

If you file Chapter 13, you can hold your house, your vehicle and any additional secured debts. Late amounts can be included in the amount going into your Chapter 13 processing and will be paid back with the remaining creditors. If you're in property foreclosure or your automobile is about to be repossessed, the personal bankruptcy will stop the action. If your automotive was already repossessed, if you file promptly enough, the collector will have to return the automobile to you.

If you do not make ample money to fulfill the monthly installments, you might not be eligible for Chapter 13 bankruptcy. Only by meeting with a Oregon bankruptcy attorney will you know if you are eligible for either type of bankruptcy. The lawyer, if you choose to rely on them, will handle all of the paperwork and court proceedings in addition to coping with your creditors. Once you have filed for individual bankruptcy, your creditors will stop contacting you.

You may be contemplating doing your individual bankruptcy paperwork yourself, but it's vital you work with a skilled attorney if you're trying to file, because you want to be sure to make no mistakes. Anything as critical as declaring bankruptcy should certainly only be taken care of by consultants in the field, which is why working with a lawyer is a good option for those considering it.

Five Points To Look At Concerning Bankruptcy

2011-05-23T16:39:00.000-07:00

If you have lost your job or endured another personal setback, you might want to contemplate speaking with a bankruptcy lawyer. The possibility to file bankruptcy could there really be for nearly everyone, but most still find great challenge when considering selecting to file.

In reality, it's a decision that was designed to be given great deliberation and thought, rather then acted upon without study of various other alternatives. While there has to be great thought put into the action, there are many very good reasons it's the best decision for some people.

Though there are good reasons to file, there is a good deal of stigma associated with bankruptcy in today's society. Nevertheless, in spite of the fear the stigma often related to bankruptcy causes, there are at least five good reasons to think about filing for bankruptcy.

1. End salary garnishments immediately. If you've lost your normal job and picked up a lesser-paying job, creditors may still come after you for any money to which they have a court order allowing them to collect by garnishing up to a quarter of your salary for creditors except for child support, past-due taxes and a number of other exceptions. Declaring bankruptcy, either Chapter 7 or 13 will right away stop all garnishment routines.

2. End harassing message or calls. Even though you don't have a new job, collectors won't hesitate to call you. Once you seek bankruptcy relief, when a creditor calls, give them the name and contact number of your bankruptcy lawyer and the calls should stop.This tiny act can help you feel 100% better, for your phone won't be buzzing off the hook.

3. Lose most of your debt. Submitting a Chapter 7 bankruptcy primarily wipes your slate clean, eradicating all but some excepted bills. Naturally, unlike the more shielding Chapter 13, you may have to sell your house and car under Chapter 7.

4. Quickly stop all foreclosures or repossessions. If you're now working, you could possibly be able to file for Chapter 13. Any past-due payments on the mortgage and auto loan can be rolled into the Chapter 13 filing, which fundamentally allows you to keep your place of residence and your vehicle.

5. Eliminate most medical bills. With few exceptions, medical bills are thought to be unsecured and if you do have a lot of medical bills they might be eliminated through Chapter 7 bankruptcy.

Whether you are qualified to file for Chapter 7 or Chapter 13 bankruptcy can be established by a personal bankruptcy lawyer. While it is not mandatory that individual bankruptcy is filed by a lawyer, the help they offer insures you are taken care of fairly and that the bankruptcy proceedings are handled efficiently. Your case might even be dismissed without an attorney there to represent your case.

How Your Job Plays Into The Steps Involved In Declaring Bankruptcy

2011-05-18T19:06:00.000-07:00

It may be extraordinarily hard to choose to file for bankruptcy, but your work status will really determine what sort you can file for. As well as employment identifying what you'll end up eligible to file for, many employers are also reluctant to hire people who have filed during the past, which tends to make your decision to file all the more challenging. Though it seems not reasonable, it is legal for them to do that.

If you're thinking of declaring bankruptcy, work together with your attorney to find out if your salary is enough to file for under Chapter 13, which will enable you to maintain your home and only make monthly installments to a court trustee that then pays off your creditors.

If you can't make adequate money, you may be advised to file underneath Chapter 7, which essentially wipes out all of your unsecured loans. When you go with Chapter 7, your home or car can be taken by the courtroom and sold with the earnings eliminating some debt. This can help make your choice to file extremely hard if you have your dream house and a spouse and children. Overall, even Chapter 7 is the greatest option for those in real financial trouble.

Your employment may be jeopardized by filing for bankruptcy according to the type of job you have and your manager's policies. Many recruiters see a individual bankruptcy filing as a sign that you can not manage your individual finances and if your role requires similar functions while at work, they may determine you aren't capable of performing the career.

Typically, business employers will ask about the causes of your filing and, according to the reasons, may keep you on the job. You might want to check out this kind of company policy before filing, in the event that your company doesn't allow their employees to file bankruptcy and work at their organization.

If you're unemployed or probably looking for new work in your immediate future, you have to know many companies are beginning to check credit histories of possible employees. A personal bankruptcy will show up on your credit report and could influence a prospective employer's decision.

The sense behind this is that when you aren't responsible with your personal finances, then you most likely are not responsible with another person's either. Nonetheless, you can definitely put forth a decent explanation of why you're choosing to file, your approach for returning on your feet and state your case for still being proficient to be a great employee.

All things considered, deciding to file for bankruptcy is truly an individual decision. Be sure you look at all options and talk with your legal consultant prior to making any decisions.

Personal Bankruptcy Opportunities To Think About

2011-04-29T15:28:00.000-07:00

If you have found yourself buried under mounds of debt, with very little relief in sight, bankruptcy might be a very good option. Filing for bankruptcy may help you get a financial new beginning. Needless to say, choosing to file for bankruptcy should not be a snap decision, because there are many repercussions to doing so. While you can do the process all by yourself it is much easier to hire an expert attorney to complete the process on your behalf.

Whenever you file, you can pick from two kinds of bankruptcy. There is Chapter 7 and Chapter 13 bankruptcy. While they are branded differently, they certainly share a number of the same characteristics. It's also possible to move from one to the other, should you meet specific criteria.

If you file for Chapter 7, there are no restrictions on the debt ceiling. On the other hand, if you file a Chapter 13 application, a binding agreement must be reached. This deal would produce a best case scenario for both the creditor and you. Chapter 13 is what most of the people with steady incomes select but others usually opt for Chapter 7.

Another form of personal bankruptcy available is Chapter 12. The Chapter 12 bankruptcy is just provided to farm families. In addition, Chapter 11 is a type of bankruptcy that deals with individuals with particularly large debts. More often than not Chapter 11 is just used for corporations who require an incredibly complex process to file for bankruptcy.

What Outcomes Does Individual Bankruptcy Have

2011-04-25T15:04:00.000-07:00

Whenever a person files for bankruptcy the results on their financial status is quite apparent but likely the hardest effects are related to their ego. Few people will charge on a credit card or obtain loans with the goal of not paying them back.

Generally something happens in their life, such as sudden medical expenses or the loss of their job that finds them unable to meet their obligations. A number of the effects of filing for bankruptcy are almost immediate while others might be longer lasting.

A lot of the debt tackled in bankruptcy is unsecured, just like credit card debt or medical debt. If the man or women is filing Chapter 7 bankruptcy, once the court approves the bankruptcy, these will simply go away for good. Nonetheless, if there are secured debts, such as an auto loan or a house loan, it is possible the car will be taken back and a foreclosure will be filed against the home.

In case you file for Chapter 13, you cannot choose which bad debts are included and which aren't. All debts, secured and unsecured are listed and the complete amount of debt will be the amount on which your monthly payments are based. Nonetheless, if you fail to make the essential payments the bankruptcy court trustee allotted to oversee your case, will advise your creditors and your case can be terminated. If that happens you can attempt to file for Chapter 7 bankruptcy and hope to have it okayed by the court.

Most often, the first effect you'll see is the fact your creditors stop calling you, provided you gave them the name of your bankruptcy lawyer, but they will also stop permitting you to use your credit cards. If your individual bankruptcy also incorporates medical bills your doctor or hospital may refer you to another health care professional and refuse to take you as a patient.

Repairing Your Credit after an Oregon Personal Bankruptcy

2011-04-12T07:41:00.000-07:00

While bankruptcy can be helpful for many people, it is critical to know the positives and negatives before you declare bankruptcy. Virtually all Oregon bankruptcy legal professionals can explain what exactly you will need to do, what the legal requirements are for filing bankruptcy, and whether you qualify for Chapter 7 or Chapter 13 bankruptcy.

The most popular is Chapter 7, in which all of your debts are eradicated. With a Chapter 13 bankruptcy you will be entered into a program that allows you to pay off your debts in a period of up to five years. When you finally speak to a bankruptcy lawyer you can then take the steps to file for the one that meets your requirements.

Following bankruptcy you might have to go through some challenging times, but your overall money picture could possibly be better than before. Since newly released changes in federal bankruptcy laws require you to undergo financial counseling, you might be better able to budget your money and with that new-found discernment you can start to regain your credit after an Oregon personal bankruptcy.

There are a lot of lenders that see the word bankruptcy and at once turn their backs but there are a lot of more that understand that you have basically hit the reset button on your finances and are starting all over again. Actually, some like the thought that you have no debt and the lack of ability to file again for personal bankruptcy for at least seven years.

Numerous credit card providers may be happy to give you a chance to regain your credit starting you off with high-interest credit cards with a low limit of $200 or $300. However, before you apply it’s essential to remember that after you go to court for bankruptcy it will not be finalized for at the least six months.

How Filing for Bankruptcy Impacts Your Future

2011-04-02T15:39:00.000-07:00

Filing for bankruptcy of course can wreck your finances for a while but it can be difficult for your ego. Very few people will charge on a credit card or acquire loans with the intention of not paying them back. Typically something happens in their life, such as unexpected medical expenses or the loss of their job that finds them not able to meet their commitments. A few of the effects of declaring bankruptcy are almost immediate while others can be longer lasting.

Most of the debt tackled in bankruptcy is unsecured, just like credit card debt or medical debt. If the man or women is filing Chapter 7 bankruptcy, after the court approves the bankruptcy, these will just disappear. However, if there are secured debts, such as an auto loan or a mortgage, it is possible the car will be reclaimed and a foreclosure will be filed up against the home.

If you file for Chapter 13, you cannot choose which bad debts are included and which aren't. All debts, secured and unsecured are listed and the total amount of debt will be the amount on which your monthly payments are based. If you neglect to meet your agreed upon payments, your court trustee will tell your creditors and the case will be terminated. If that happens you can try to file Chapter 7 bankruptcy and hope to have it permitted by the court.

Regularly, the first effect you will see is the fact your creditors stop calling you, provided you gave them the name of your bankruptcy attorney, but they will also stop permitting you to use your credit cards. If your personal bankruptcy also incorporates medical bills your doctor or hospital may refer you to an alternative health care professional and refuse to take you as a patient.

The Way To Choose A Bankruptcy Lawyer or Attorney

2011-03-15T11:22:00.000-07:00

If you feel you have virtually no other alternative than to file for bankruptcy, you will need to begin the process right away. If you really feel it's in your best interest to start a bankruptcy petition, you'll be in need of an attorney who can help you through all of the confusing inter-workings of the bankruptcy progression. By working with your attorney, you can feel far more confident and secure with a generally very scary process.

When selecting your bankruptcy lawyer, it's essential to find one you are relaxed with. You will be required to talk a bunch about your life and your prior experiences with your legal representative, so it's essential you can do it without holding back.

If you would like to get the most support from your attorney at law as possible, you'll need to totally disclose your fiscal predicament to them. It's also critical to pick a legal professional with experience in bankruptcy procedures. If you don't know anyone personally who deals with bankruptcy, ask your close friends or find online recommendations. Money may possibly be another crucial issue. Ask your attorney what their rates are in advance.

If you feel awkward with the costs, find another lawyer. After all, you don't want to pay a high price for an attorney when you're attempting to find a way out of debt to start with. If you have the ability to have a sincere communication connection with your bankruptcy law firm, the entire process will be significantly less stressful.

Bear in mind you are legally able to do your own bankruptcy paperwork. Nonetheless, you'll likely quickly find you are in way over your head. The process is lengthy, irritating and difficult to understand. Consequently, having a professional by your side to assist you on the way can be excellent. So, if you're even thinking of doing your own bankruptcy paperwork, make certain you're all set for a challenge.

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

2010-10-17T11:50:00.000-07:00

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.

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

2010-09-28T19:34:00.000-07:00

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.

Should I Sue an Abusive Debt Collector?

2010-09-25T11:49:00.000-07:00

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.

Is Bankruptcy Harder on My Credit Score than Foreclosure?

2010-09-21T14:13:00.000-07:00

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.

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

2010-09-17T12:45:00.000-07:00

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.

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

2010-09-13T11:37:00.000-07:00

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 www.studentloanborrowassistance.org (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.

Bankruptcy Protection for American Servicemen and Women

2010-09-09T16:08:00.000-07:00

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.

Bankruptcy and Retirement Plans

2010-09-05T17:24:00.000-07:00

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.)

Out of Control Debt Collectors: What you need to know

2010-09-01T15:16:00.000-07:00

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 www.ftc.gov/ftc/complaint.htm -- and of course, let your bankruptcy attorney know if you have been a victim of collector harassment.

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

2010-08-27T21:43:00.000-07:00

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.

Blockbuster not such a Blockbuster anymore

2010-08-24T20:23:00.000-07:00

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.

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

2010-08-21T17:07:00.000-07:00

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.

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

2010-08-17T09:57:00.000-07:00

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.

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

2010-08-14T14:10:00.000-07:00

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.

Payday Loan Debt and Bankruptcy

2010-08-11T18:26:00.000-07:00

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.

Is technology having an impact on celebrity bankruptcy?

2010-08-07T12:12:00.000-07:00

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!

Women and Bankruptcy :: The Numbers are Rising

2010-08-03T11:32:00.000-07:00

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.

Bankruptcy and Clearing Debt

2010-07-29T17:42:00.000-07:00

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.

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

2010-07-25T14:16:00.000-07:00

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.

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

2010-07-22T16:18:00.000-07:00

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.

Tom McAvity :: What is a Bankruptcy Discharge

2010-07-17T16:22:00.000-07:00

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.

Vancouver, WA Bankruptcy filing done easily

2010-07-12T03:41:00.000-07:00

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.

Chapter 7 Bankruptcy in Vancouver, WA

2010-07-10T19:18:00.000-07:00

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.

Declaring Personal Bankruptcy in Salem, OR

2010-07-06T21:56:00.000-07:00

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.

Consumer Bankruptcy Filings Rise in Middle Class

2010-07-01T17:27:00.000-07:00

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.

John Beardsley Bankruptcy | Consumer and Corporate Bankruptcy

2010-06-26T15:43:00.000-07:00

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.

Downturn in Bankruptcy Filings Likely not to Last

2010-06-23T12:46:00.000-07:00

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.

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

2010-06-20T11:36:00.000-07:00

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.

Bill Collector Harassment | Tom McAvity Suggestions

2010-06-16T15:50:00.000-07:00

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.

Chapter 13 Bankruptcy Explained

2010-06-12T18:00:00.000-07:00

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.

Chapter 7 Bankruptcy Definition

2010-06-08T18:42:00.000-07:00

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.

Portland Bankruptcy | Does Bankruptcy Clear Student Loans?

2010-06-04T20:44:00.000-07:00

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.

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

2010-06-01T09:53:00.000-07:00

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.

Vancouver Bankruptcy: Credit After Bankruptcy is Possible

2010-05-29T09:19:00.000-07:00

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.

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

2010-05-25T09:41:00.000-07:00

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.

Vancouver, WA Bankruptcy Attorneys can Help You

2010-05-23T18:50:00.000-07:00

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.

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

2010-05-21T19:39:00.000-07:00

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

Foreclosure Defense and Filing Bankruptcy in Vancouver

2010-05-19T08:31:00.000-07:00

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.

Foreclosure Notice: What do You do Now?

2010-05-17T11:58:00.000-07:00

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.

What can I do to Prepare for Bankruptcy?

2010-05-15T17:13:00.000-07:00

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.

Filing Bankruptcy in Washinton Bankruptcy: Pre-Bankruptcy in Steps

2010-05-13T17:17:00.000-07:00

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.

Tom McAvity tells us how Chapter 13 Helps with Foreclosure

2010-05-11T13:23:00.000-07:00

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.

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

2010-05-09T07:36:00.000-07:00

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.

Can I File Bankruptcy if I Already Have Before?

2010-05-05T14:58:00.000-07:00

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.

Thomas McAvity's Common Bankruptcy Myths

2010-05-02T07:47:00.000-07:00

The Northwest Debt Relief Law Firm (NWDRLF) and Thomas McAvity know that there are many people who wish they could file for bankruptcy but they either fear to take the plunge or they are so paralyzed with fear of being judged that they simply don't do it until they have no other option.

The truth of the matter is that bankruptcy may not look like the most attractive option at first, but in many cases, it is. Bankruptcy can offer a fresh financial start, and contrary to myths about bankruptcy, Tom McAvity can tell you, restoring credit after a Chapter 13 debt reorganization will not take the eons that the urban legends would have you believe.

Another myth that ought to be dispelled right away: many people who are ready to file for bankruptcy fail to do so because they think it will be common knowledge -- that they will be rallied around the town square with eyes all over them. Not so. Bankruptcy, whether it is a Chapter 7 or Chapter 13 will not be a public matter. These types of bankruptcies are between you and your bankruptcy attorney, your creditors, and the bankruptcy court.

Tom McAvity encourages you to look into your options as opposed to believing all the hype that surrounds bankruptcy these days. After all, there would hardly be so much to talk about if it wasn't so profoundly popular a choice for so many.

Tom McAvity's Chapter 7 versus Chapter 13: which works for you?

2010-05-01T12:12:00.000-07:00

Have you ever been told -- whether to your face or through experience -- that bankruptcy is a bad thing? Perhaps you've been told or made to understand that filing for personal bankruptcy is bad for your reputation. Tom McAvity is here to tell you otherwise.
Personal bankruptcy, whether it is a Chapter 7 asset liquidation, or a Chapter 13 reorganization of debt, can both be good if they are geared toward the proper candidate.
When faced with financial hardship that is costing you more than it should financially, emotionally, and mentally, the time comes to consider one of these two types of bankruptcy.
Tom McAvity and his team at NWDRLF can help you to decide which of these two options in personal bankruptcy makes the most sense for you. Some of the deciding factors may be:

Are you a sole proprietor of a small business?
Are you a homeowner behind on mortgage payments?
Do you own commercial and/or other real property?
Are your bills mainly due to credit card debt?
Are you behind on bills but think you could catch up if you could just catch a break?
Have you been laid off or had a layoff in the family?

Tom McAvity will look at the answers to these questions and tailor either a Chapter 13 or Chapter 7 bankruptcy plan that will serve you and your financial future best.

You can always direct any questions you have to Tom McAvity by contacting NWDRLF at 1-866-601-1918. Please, let us know how we can help you today!

Want to Know Who You Owe?

2010-04-23T12:39:00.000-07:00

It's actually quite easy to find out who you owe money to -- and it could be creditors or collecetions agencies that you've forgotten about, never heard of, or who should have been removed from your credit report because you resolved the debt.

Tom McAvity recommends pulling a yearly credit report from all three credit bureaus. You are entitled to these credit reports free of charge under the Under the Fair and Accurate Credit Transactions Act.

If you are ready to file for bankruptcy in Salem, Oregon or Vancouver, Washington, Tom McAvity and the legal team at the Northwest Debt Relief Law Firm (NWDRLF) are happy to assist you with everything you'll need to get started. They offer a free initial consultation and legal support that is second to none. You'll need help understanding how to do your pre-bankruptcy "homework" so that filing bankruptcy in Portland or Salem, Oregon can be done efficiently and accurately.

NWDRLF and Tom McAvity offer 24 hour support in the form of an Internet portal where you can log in and check on your personal bankruptcy status any time, day or night.

So get started. Get your free credit report from www.AnnualCreditReport.com and get a feel for the ins and outs of your credit score and credit history. Once you've done this you'll have a much clearer idea of what you're up against, who you owe, and who you may have to file disputes with. It's fast, easy, and worth doing at least once every twelve months. Checking your credit report and score is like having a physical exam -- if you don't go to the doctor there's no way to know for sure exactly how healthy you are. Check your credit, and file for bankruptcy if you need to -- get more information on exactly how to do this by contacting NWDRLF at 1-866-601-1918.

Welcome to Tom McAvity's Bankruptcy Blog

2010-04-19T12:33:00.000-07:00

We all know that bankruptcies are at all time highs in the nation right now because of the subprime crisis and the subsequent foreclosure crisis that still plagues the nation. Most of us also know there's a lot more going on behind the scenes than that.

What Tom McAvity hopes to achieve with this blog is to impart some inside information about bankruptcy and how yes, it is a good thing for the people who need real relief. Predatory lending practices, subprime and ARM mortgages are just the big issues that pose(d) clear and present danger for American consumers. There's much more to this puzzle than what can be simply stated, and perhaps that's the reason for so many bankruptcy FAQs all over the net, the constant discussion of bankruptcy in the news, and the constant chatter on every street corner; I was laid off, my husband was laid off, we can't keep up with our mortgage, I'm spending my retirement and my child's college fund to keep up with house payments.

Tom McAvity has a sincere desire to help residents of Portland and Salem, Oregon, as well as residents of Vancouver, Washington, face their fear of financial hardship with the antidote of Chapter 13 Bankruptcy.

It's not the end of the world. What really could be the end of the world would be consumers who really need to file for bankruptcy not doing so. Americans have a right to protection in the realm of finances. Given the harsh economic climate and the fact that many homeowners fell into mortgages that seemed great in the early 2000s but have turned out to put them in a horrible financial bind in the late 2000s, bankruptcy should not be the Scarlet Letter. Americans need to know that the truth about bankruptcy is hope for a future.

Thomas McAvity is a seasoned bankruptcy attorney serving Oregon and Washington states. More posts to come as we learn more everyday about what bankruptcy can do for those who need debt relief so badly.