Baxter & Baxter, LLP | Consumer Protection | Bankruptcy Attorneys | Oregon & Washington

Chapter 7 Bankruptcy . Individuals can file for bankruptcy under Chapter 7 (liquidation) or Chapter 13 (a “consumer reorganization”, or debt adjustment case). In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Most liens, however (such as real estate mortgages and security interests for car loans), survive. Other assets, if any, are sold (liquidated) by the interim trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceeding, but there are various types of debt that are not discharged in a Chapter 7. Common exceptions to discharge include child support, income taxes less than 3 years old and property taxes, student loans (unless the debtor prevails in a difficult-to-win adversary proceeding brought to determine the dischargeability of the student loan), and fines and restitution imposed by a court for any crimes committed by the debtor. Spousal support is likewise not covered by a bankruptcy filing nor are property settlements through divorce. Despite their potential non-dischargeability, all debts must be listed on bankruptcy schedules. This information is presented by the Bankruptcy Practice Group of Baxter & Baxter, LLP. The Portland, Oregon bankruptcy attorneys and Vancouver WA bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcies. We offer a free initial phone consultation. We can stop collection calls from debt collectors and home foreclosures. We can advise consumers whether to file for bankruptcy, and what form of bankruptcy to file. “We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”

Common Myths about Filing for Bankruptcy in Oregon and Washington Below are a number of common myths about bankruptcy and explanations of the truth. Bankruptcy will Ruin My Credit Forever. False. It is true that bankruptcy can be reported on your credit report for up to 10 years after your case is filed, but the actual effect on your credit score varies depending on what your score was before you filed bankruptcy, and it is temporary because you can start rebuilding your credit immediately after filing your case. In many cases, especially for people who have very low credit scores before filing bankruptcy, their credit scores go up shortly after filing bankruptcy, as long as they maintain payments on obligations thereafter. Bankruptcy Relief is No Longer Available. This is not true. The new bankruptcy laws have made the process more burdensome in some cases, and altered eligibility for certain people, but for most people, if they were eligible before, then they are likely eligible now for bankruptcy relief. If I file bankruptcy I will have to repay some or all of my debts. This is false in most cases. For individuals, Chapter 7 is still available for most people, as set forth above. Sometimes if the analysis shows too much income on either the means test or current budget, you may have to do a repayment plan in a Chapter 13, but not usually. And a Chapter 13 is still a very workable option with other benefits. I will lose all my property if I file bankruptcy. False. Whether you get to keep your property depends on the value (or amount of equity) in any particular item of property and what exemptions you have available to protect the value in that asset. In the vast majority of cases in Oregon and Washington, you will be able to keep your property. Of course, analysis by a bankruptcy professional is necessary to accurately make that determination. This information is presented by the Bankruptcy Practice Group of Baxter & Baxter, LLP. The Portland, Oregon bankruptcy attorneys and Vancouver WA bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcies. We offer a free initial phone consultation. We can stop collection calls from debt collectors and home foreclosures. We can advise consumers whether to file for bankruptcy, and what form of bankruptcy to file. “We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”

Why Should You Hire a Bankruptcy Attorney ? Lara M. Gardner Filing bankruptcy can be one of the most difficult choices a person makes. Often you have been struggling to meet your financial obligations. Something happens and the house of cards comes tumbling down, leaving you faced with a proposition that seems like failure. It is difficult and frustrating. You go to see an attorney and realize that even though you have no money to pay your bills, the attorney wants over a thousand dollars or more to represent you. You discover there may be an alternative. You could pay someone much less to prepare your petition for you. You think Why not? Your case isn’t complicated, at least you don’t think it is. You pay a few hundred dollars and file your case. You may be okay. More likely, after things go very wrong you will realize that you should have hired an attorney. Bankruptcy is more complicated than it appears on the surface. People who have seen or attended a bankruptcy hearing testify that the meetings are often over quickly. What is not apparent from the meeting is that most of the complicated work is done before the meeting takes place. The hearing should go smoothly if everything was done right ahead of time. Having sat through countless hearings while representing debtors in the bankruptcy cases, I can assure you that bankruptcy is often more complicated than it looks, especially since the changes that took place in the bankruptcy laws in 2005. Bankruptcy is more than what bills you owe. People often do not realize that all of their belongings are assets that may or may not be exempt. You may fail to disclose an item that could have been protected, only to lose it because of the lack of disclosure. The actions taken in the years and months leading up to bankruptcy can have consequences, and can cause unintended ramifications for friends and family members. Every consumer bankruptcy case is assigned to a trustee. That person is responsible for ensuring the interests of your creditors are protected. When you hire a bankruptcy attorney, this person is there to represent you. Your attorney can help you to determine which debts you can discharge or pay off. Your attorney will help you protect assets that are not exempt, and will help you to do so legally. Your attorney will make sure you list every asset and that every asset that can be is protected. Your attorney will help you ensure that bankruptcy is what it is intended to be: a fresh start. When you pay an attorney, you are paying that person to ensure you file everything you are supposed to file, turn over all the paperwork you are required to turn over, help you maximize your assets and minimize your losses, and to represent you against your creditors. In short, you are paying for the best fresh start you can muster. What can a petition preparer do? Legally, all a petition preparer can do is fill in the blanks on your bankruptcy documents. If you choose to pay someone hundreds of dollars for this service you are, in effect, paying hundreds of dollars for data entry service. If a petition preparer does more than enter information into your petition, that person is breaking the law. Both federal bankruptcy laws and state rules governing the practice of law forbid anyone except a licensed attorney from giving you advice. Why? To protect you, the consumer. If an attorney messes up your case, there are protections in place to help you. Attorneys in Oregon,Washington, and many other states are required to carry malpractice insurance. They can also be sanctioned by their bars for failure to adhere to a basic code of conduct. There are no systems in place to help you if a document preparer messes up your petition or gives you erroneous advice. You may be able to file a complaint claiming they practiced law without a license, and while the person may face fines or sanctions, you will not get anything to cover your losses. Hiring an attorney to represent you during your bankruptcy can be expensive. After suffering through financial difficulties and falling behind on your financial obligations, handing over a large sum of money to an attorney can seem like a real hardship. But bankruptcy is not an area to shortchange yourself. Filing bankruptcy is your opportunity to make a fresh start. Make it the best start it can be by hiring a good attorney to represent, protect, and advise you. Think of it as your first investment in a new financial future. Lara Gardner is a consumer bankruptcy attorney for the consumer protection law firm of Baxter & Baxter, LLP. Click here to learn more about Lara. This information is presented by the Bankruptcy Practice Group of Baxter & Baxter, LLP. The Portland, Oregon bankruptcy attorneys and Vancouver WA bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcies. We offer a free initial phone consultation. We can stop collection calls from debt collectors and home foreclosures. We can advise consumers whether to file for bankruptcy, and what form of bankruptcy to file. “We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”

The Process of Filing for Bankruptcy in Oregon and Washington Consumers often have questions about the basic process of filing for a bankruptcy in Oregon. The dedicated Portland, Oregon bankruptcy attorneys of Baxter & Baxter, LLP, can guide you through this process. Here are the basic steps of filing for bankruptcy in Oregon: 1. Gather documentation and file initial petition and schedules 2. Attend the initial meeting with the Trustee 3. Provide additional requested documents 4. Negotiate reaffirmation agreements 5. Attend reaffirmation hearing (if applicable) 6. Receive discharge (often as little as 3 months from filing) 7. Get a Fresh Start! The steps in filing a bankruptcy are straightforward, but the requirements must be followed properly to get a swift and final discharge. The Portland bankruptcy attorneys of Baxter & Baxter, LLP, can help you though the process of filing bankruptcy in Oregon. If you would like a free telephone consultation with an Oregon bankruptcy lawyer, call (503) 297-9031 today! The Vancouver, Washington bankruptcy attorneys of Baxter & Baxter, LLP have offices in SW Washington, and represent consumers in Vancouver, Clark County, and Cowlitz County. If you would like a free telephone consultation with an Oregon bankruptcy lawyer, call (360) 574-5239 today! This information is presented by the Bankruptcy Practice Group of Baxter & Baxter, LLP. The Portland, Oregon bankruptcy attorneys and Vancouver WA bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcies. We offer a free initial phone consultation. We can stop collection calls from debt collectors and home foreclosures. We can advise consumers whether to file for bankruptcy, and what form of bankruptcy to file. “We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”

Stopping Home Foreclosure through Bankruptcy 2 Many consumers are new home owners because of lax lending rules in recent years, and because of non-conventional loan schemes, including zero-interest, zero-down loans. The bad economy has left many new home owners wondering how bankruptcy will affect their mortgage and their ability to keep their homes. Bankruptcy offers a way to stop the foreclosure sale and to retain your property, even over the foreclosing creditor’s objection! Facing a foreclosure is something that they never imagined would happen. For them, and perhaps you, the foreclosure is often the result of circumstances beyond their control, such as temporary loss of a job or an illness. An obvious solution to the foreclosure may be to sell the property before the date of the foreclosure sale. However, it is often not possible to conclude the sale before the date of foreclosure. Plus, most people want to keep their home and find a way to get caught up on their payments. You may be able to stop or avoid home foreclosure and keep your home by filing a Chapter 13 bankruptcy. The Portland, Oregon bankruptcy attorneys of Baxter & Baxter, LLP, can advise you on whether you should file for bankruptcy, and whether Chapter 13 bankruptcy is right for you. Foreclosures under Chapter 13 Bankruptcy In a Chapter 13 bankruptcy, the court enters an order creating a repayment program. The Plan lets the debtor pay off the arrearage, including late payments over the length of a repayment plan, usually three to five years in some cases. The benefit of filing for Chapter 13 bankruptcy is that the home owner gets to keep their home and get current on the mortgage over time. A Chapter 13 bankruptcy may also help you eliminate the payments on your second or third mortgage altogether. Unlike your first mortgage, which is secured by the property and the value of the property, you may no longer have any equity with which to secure the subordinate mortgages. Under those circumstances, the court may “strip off” the second and third mortgages and recategorize them as unsecured debt. Under Chapter 13 of the bankruptcy code, unsecuritized debt takes last priority and often does not have to be paid back at all. Foreclosures under Chapter 7 Bankruptcy If you do not have sufficient income after your bankruptcy to qualify for a repayment plan, it may be necessary to petition for a total liquidation under Chapter 7. If you are not able to afford your mortgage payment after your bankruptcy (for example in the case of death, divorce, or long-term unemployment), the debtor can surrender the property back to the lender. If you are filing for Chapter 7 bankruptcy, the final discharge order will at least discharge the debt, including the deficiency. In some cases, it is possible to reaffirm a mortgage, but at the close of the bankruptcy case, the debtor must immediately get current on the arrearage, including late payments and charges; otherwise the lender can start a new foreclosure proceeding. The Portland bankruptcy lawyers of Baxter & Baxter, LLP, offer competitive rates, and we can work with you to move swiftly to avoid home foreclosures. For a free phone consultation with a Portland, Oregon bankruptcy lawyer, call (503) 297-9031 today! This information is presented by the Bankruptcy Practice Group of Baxter & Baxter, LLP. The Portland, Oregon bankruptcy attorneys and Vancouver WA bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcies. We offer a free initial phone consultation. We can stop collection calls from debt collectors and home foreclosures. We can advise consumers whether to file for bankruptcy, and what form of bankruptcy to file. “We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”