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Bankruptcy Terms and Definitions

Posted on by Jessica Nomie

Common Bankruptcy Terms and Definitions:

  1. Bankruptcy Court: Bankruptcy courts are created under the U.S. constitution. They are federal courts created by federal law. For the Bankruptcy Court for the District of Oregon, there are two court locations: one in Portland and the second in Eugene. The court’s website can be found at this link: https://www.orb.uscourts.gov/
  2. Debtor: A debtor is a person or entity owing money or consideration to another party. The other party is called a “creditor”. The debtor can also be called the “borrower” when the debt is a loan.
  3. Creditor: A creditor is a person or entity that lends money or extends credit to the borrower, or the debtor. Sometimes, the creditor requires collateral for the loan or extension of credit. A creditor has a right to repayment of the debt; often charging interest until the original loan or extension of credit is paid in full.
  4. Debt: A debt can be owed when a creditor extends credit or a loan of money to the borrower/debtor.  It is an obligation for the debtor to give back value to the creditor. Payment terms for repayment of the debt can be outlined in a contract between the debtor and creditor.
  5. Bankruptcy Trustee: A trustee is a person appointed to represent a debtor’s bankruptcy estate when the debtor files for bankruptcy. The trustee determines if there is money or assets that can be recovered to pay creditors some or all of the debt owed to them. In Chapter 13 cases, the trustee receives a debtor’s monthly plan payments and administers those funds to the creditors throughout the life of the payment plan.
  6. Meeting of the Creditors: A Meeting of the Creditors is also called the 341a hearing. This is where the trustee will review debtor’s paperwork and ask questions to determine whether there are income or assets that can be recovered to pay some or all of the debts back. Creditors are provided notice of this hearing and can appear and ask the debtor questions.
  7. Bankruptcy Discharge: A bankruptcy discharge will release a person (the debtor) from personal liability to pay certain debts. Not all debts are discharged in bankruptcy. Common debts eligible for a discharge are credit card, medical, auto loan deficiency, personal loans and other miscellaneous consumer debts. In some situations, tax debt can be eligible for discharge although that inquiry is more complicated. In most situations, student loan debt does not qualify for discharge.

If you are considering a bankruptcy filing as your debt relief option, then you should consult with a bankruptcy lawyer.

Jessica Nomie Law is an Oregon bankruptcy lawyer serving people throughout the state, primarily in Clackamas and Portland areas.  Jessica specializes in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Her firm offers virtual representation options and free initial consultations.

What is the Meeting of Creditors?

What is the Meeting of Creditors?

Posted on by Jessica Nomie

What is a Meeting of the Creditors?

What is the Meeting of Creditors?

The court schedules a meeting of the creditors after the filing of Chapter 7 or Chapter 13 bankruptcy petition. This meeting is also known as a “341a Hearing”.

At this hearing, the trustee will “swear in” the debtor.  After that, the trustee will ask the debtor a series of questions to determine if there are assets or income that can be recovered from the debtor and paid to the creditors. Attendance at this hearing is mandatory. If a debtor fails to appear at this meeting, then they will not receive a bankruptcy discharge.

The bankruptcy trustee controls the meeting. Creditors have the right to show up to question the debtor as well. It is rare that a creditor will actually appear at the meeting. This is not a formal court hearing.  For most debtors in Chapter 7 and Chapter 13 cases, the hearing can be completed in a matter of minutes.

When is the Meeting of Creditors?

The meeting is typically scheduled 21-40 days after a bankruptcy petition is filed.

Contact Jessica Nomie Law today if you have questions about filing for bankruptcy. We offer free consultations 7-days a week.

The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.

We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.

Bankruptcy, Eviction, and Forelcosure

Bankruptcy, Eviction, and Forelcosure

Posted on by Jessica Nomie

Did you know that Bankruptcy can stop an eviction or foreclosure?

Eviction and foreclosure moratoriums are lifting around the country.  Many wonder what options are available for individuals facing these difficult circumstances.

Bankruptcy is one available tool to prevent eviction or foreclosure.  Bankruptcy can also assist with debt relief after an eviction or foreclosure has already occurred.

Here are a couple of scenarios for how bankruptcy can help with eviction and foreclosure:

    1. Scenario: You are facing eviction and do not plan to stay in the home.

      In this situation, you likely owe your landlord money for unpaid rent and other penalties. If you do not pay this debt, then the landlord can hire a collection agency or lawyer to collect the debt. They can even file a lawsuit to obtain a collections judgment against you.
      Bankruptcy can help with unpaid rent and other associated debts. These debts are eligible for discharge in Chapter 7 bankruptcy or Chapter 13 bankruptcy.

    2. Scenario: You are facing eviction and would like to stay in the home.

      You may be eligible for Chapter 13 bankruptcy.  In a Chapter 13 bankruptcy, you are on a payment plan to pay certain debts back over a 3-year or 5-year term. In this situation, you would be required to set up your Chapter 13 payment plan so that the arrears owed to your landlord are paid off through your case. You are also required to make your future rent payments on time.

    3. Scenario: You are facing foreclosure and would like to get current on your mortgage and stay in your home.

      Chapter 13 may be your best option.  Your Chapter 13 payment plan will stop the foreclosure process and pay off your mortgage arrears through your bankruptcy payment plan.  To prevent future foreclosure proceeding, you must also timely pay your monthly mortgage moving forward. If successful, then your mortgage will be current, and risk of foreclosure resolved when your 3-year or 5-year payment plan term concludes.

    All of these situations are very technical, time sensitive and case specific.  If you are facing eviction or foreclosure, then you need to contact a lawyer ASAP if you would like to explore options to protect your rights and your home.

    The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.

    We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.

What is the Bankruptcy Means Test?

What is the Bankruptcy Means Test?

Posted on by Jessica Nomie

Bankruptcy Question: What is the “Means Test” in Bankruptcy?

Answer: The “Means Test” is one method for determining whether someone qualifies for a Chapter 7 Bankruptcy case.

One qualification to file for a Chapter 7 Bankruptcy requires that your household income be at, or below, your state’s median income for a household of your same size. The Median Family Income by Family Size can change.  Your bankruptcy lawyer can help you determine if you qualify to file for a Chapter 7 Bankruptcy.

If your household income is above median income for a household of your same size, then you must complete the entire means test form to determine if you can qualify for a Chapter 7 Bankruptcy.  In this situation, you can make certain adjustments to still qualify for a Chapter 7 Bankruptcy.  An experienced bankruptcy lawyer can help with this.  A lawyer will determine if adjusting the timing of when you file for bankruptcy, or certain other factors such as taxes paid, insurance and healthcare costs, and other regular household expenses, can help you “pass the means test”.

If your income remains too high to qualify for a Chapter 7 bankruptcy, then consider a Chapter 13 Bankruptcy.  The Means Test can help determine your monthly payment in a Chapter 13 Bankruptcy case.

Updated Median Family Income by Family Size for cases filed in the State of Oregon on or after May 15, 2021* can be found below:

Household Size:

  1. $62,059
  2. $74,283
  3. $89,565
  4. $101,773
  5. Add $9,000 for each additional individual in excess of four

*These figures can change and are specific to bankruptcy cases filed in the State of Oregon.

Please note that there are other factors to consider when determining if you qualify for a Chapter 7 Bankruptcy.  Jessica Nomie Law offers free bankruptcy consultations and will help you determine if bankruptcy is the right option for you.

The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.

We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.

Child Tax Credit and Bankruptcy

Child Tax Credit and Bankruptcy

Posted on by Jessica Nomie

Is the Child Tax Credit Protected in Bankruptcy?

Question: Can you file for bankruptcy and protect the child tax credit money you are receiving?

Answer: Yes.

Since the Covid pandemic began, Congress has passed three relief packages for the public:

  1. The Coronavirus Aid, Relief and Economic Security Act (CARES Act)
  2. The Consolidated Appropriations Act (CAA)
  3. The American Rescue Plan Act (ARPA)

Each package has offered financial aid for individuals.  That relief has been known as “stimulus” payments. The most recent legislation that was passed in March of 2021, The ARPA, also offers a monthly child tax credit.  The child tax credit is available to families with children who will be under age 18 by the end of the year 2021. Starting July 15, 2021, families began receiving this monthly tax credit.

Some people may wonder how and if that tax credit will impact a bankruptcy filing.

The tax credit, as well as any stimulus funds received or yet to be received under the three packages, are protected in bankruptcy. They are not considered income for purposes of the means test calculation in Chapter 7 or Chapter 13 bankruptcy, or determining a Chapter 13 payment plan. Furthermore, these funds are not subject to administration in a bankruptcy estate. In other words, there is a bankruptcy protection, called an exemption, that protects the stimulus and tax credit money from being taken in bankruptcy to pay creditors.

If you are considering a bankruptcy filing as your debt relief option, then you should consult with a bankruptcy lawyer.

Jessica Nomie Law is an Oregon bankruptcy lawyer serving people throughout the state of Oregon, primarily in Clackamas and Portland areas.  Jessica specializes in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Her firm offers virtual representation options and free initial consultations.

How much does bankruptcy cost?

How much does bankruptcy cost?

Posted on by Jessica Nomie

The cost of filing for bankruptcy varies.

The cost of bankruptcy can depend on the following:

  • What kind of bankruptcy you are filing for,
  • The law firm you hire,
  • The complexity of your case.

When you call our office, you will be offered a free consultation. During the consultation we will discuss your options, as well as the fees associated with whichever option is best for you.

We will not discuss whether you qualify for a Chapter 7 bankruptcy case in this article. Contact our office if you live in Oregon and are interested in a bankruptcy consultation.

Chapter 7 Bankruptcy Costs:

  • Lawyer Fee: The cost for a Chapter 7 bankruptcy is typically a flat fee. This means that you would know the fees you are signing up for when you hire the lawyer.  The amount of that flat fee can vary.  Some firms charge more than others.  Some cases have more difficult circumstances that might require a higher fee.  Other cases may require a smaller fee because there are fewer creditors and minimal assets.  For this reason,  it is hard to say exactly what a bankruptcy costs.  At our firm we believe we have reasonable fees and we offer payment plan options for those who cannot pay all at one time.
  • Court Fee: For any case that is filed with courts, there is a filing fee.  As of 2021, the filing fee for a Chapter 7 bankruptcy in Oregon is $338.00.  Court filing fees can increase with time. Usually, this fee is paid at the time your case gets filed, although there are other payment plan options available.
  • Credit Counseling:  To file  Chapter 7 or Chapter 13 bankruptcy, you must take two classes that are offered over the phone or online.  The first class must be taken before your bankruptcy petition is filed.  This class is called “Credit Counseling”.  The second class must be taken while your case is open.  The second course is called “Debtor Education” and is also known as the “Financial Management” course. There are many companies that offer these courses and their costs vary. Typically, the fees range from as low as $10 for each course and up to $50 for each course.  We can recommend courses to you when you hire our firm.

Chapter 13 Bankruptcy Costs:

  • Lawyer Fee:  It is more difficult to predict Chapter 13 bankruptcy costs since these cases tend to be more time and labor intensive.  They are usually more complicated than a traditional Chapter 7 case.  Various arrangements can either be flat fee, hourly billing, or a combination of the two. You should consult with a lawyer to determine which arrangement would apply to your case.
  • Court Fee: As of 2021, the filing fee for a Chapter 13 bankruptcy case is $313.00. You can follow this link to the court’s website to find a summary of all fees, and a link to pay filing fees: https://www.orb.uscourts.gov/court-fees.  Typically, with Chapter 13 cases, the entire filing fee must be paid when the case is filed. It is less likely that a payment plan option would be available.
  • Credit Counseling: Please see the above explanation regarding credit counseling and debtor education course fees in Chapter 7 cases. These fees and requirements are the same for Chapter 13 cases.

If you are considering a bankruptcy filing as your debt relief option, then you should consult with a bankruptcy lawyer.

Jessica Nomie Law is an Oregon bankruptcy lawyer serving people throughout the state, primarily in Clackamas and Portland areas.  Jessica specializes in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Her firm offers virtual representation options and free initial consultations.

Oregon Bankruptcy Resources

Posted on by Jessica Nomie

Below are helpful links for an individual who is filing for Bankruptcy in Oregon:

  • Oregon Bankruptcy Court
    The Oregon Bankruptcy Court website has information about filing for bankruptcy in Oregon. You can also pay your filing fee on the court website for your Chapter 7 Bankruptcy or Chapter 13 Bankruptcy case.

Website: https://www.orb.uscourts.gov/

  • IRS
    You can create an account with the IRS so that you can check the status of your tax debt balance with the IRS or request a tax transcript.

Website: https://sa.www4.irs.gov/eauth/pub/es_general.jsp

  • ODR
    If you want to check the status of your tax debt balance with the Oregon Department of Revenue, or request transcripts, then you can follow this link.

Website: https://revenueonline.dor.oregon.gov/tap/_/

  • Wayne Godare
    Mr. Godare is the Trustee for Portland, Oregon Chapter 13 Bankruptcy cases. If you are in a Chapter 13 Bankruptcy, then you can obtain information from his website.

Website: http://portland13.com/

  • Debtor Section of the Oregon State Bar
    You can find information about resources and trustees in your Oregon Chapter 7 Bankruptcy case by following this link.

Website: https://debtorcreditor.osbar.org/resources/

  • Oregon Secretary of State
    If a business is registered in Oregon, then you can search the business at the Oregon Secretary of State website to locate their address and officers.

Website: http://egov.sos.state.or.us/br/pkg_web_name_srch_inq.login

  • Oregon State Courts
    You can start here to locate the Oregon county court that you need to contact.

Website: https://www.courts.oregon.gov/courts/Pages/default.aspx

  • CFPB Website
    The CFPB is a government agency that regulates banks and lenders to ensure consumers are fairly treated. They provide updated information and tools for consumers, including tips and updates about debt relief, collections, and Covid-19 on their website.

Website: https://www.consumerfinance.gov/

If you are considering a bankruptcy filing as your debt relief option, then you should consult with a bankruptcy lawyer.

Jessica Nomie Law is an Oregon bankruptcy lawyer serving people throughout the state, primarily in Clackamas and Portland areas. Jessica specializes in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Her firm offers virtual representation options and free initial consultations.

Covid-19 and Bankruptcy

Covid-19 and Bankruptcy

Posted on by Jessica Nomie

Question: Can I file for bankruptcy during COVID-19?

Answer: Yes.

The Oregon Bankruptcy Courts remain fully operational during the Covid-19 pandemic.

The Oregon Bankruptcy Court was quick to react to the Covid-19 pandemic.  New court procedures have been implemented and continue to be improved.  This has allowed continued access to justice for all bankruptcy filers.  All court hearings are being conducted telephonically or via zoom video conference.  This includes the 341a Meeting of the Creditor Hearing that bankruptcy filers must attend after their Chapter 7 bankruptcy or Chapter 13 bankruptcy case is filed.

What does this mean?

  1. You can still file for bankruptcy during the Covid-19 pandemic.
  2. You will be able to attend your hearings via a telephone conference line, rather than in person, until further notice.
  3. If you contact our firm, you will also have access to a virtual attorney, if that is your preference.

What if you are not comfortable with technology?

If technology intimidates you, we can help make the process easier.  We have been involved every step of the way to assist our clients with their Chapter 7 bankruptcy and Chapter 13 bankruptcy filings.  During the pandemic, this has included facilitating the technological requirements for our clients in this unprecedented time.  We offer completely virtual representation, as well as safe in-person appointments.  At our firm, we guide our clients through technology such as printing, Zoom video conference calls and calling into the hearing conference lines. We do our best for our clients, including scheduling practice calls in advance of hearings to ensure that our clients are prepared for the technological aspect of their upcoming bankruptcy hearing.

It is certainly a unique time, but your access to justice and the bankruptcy courts remains fully available and functional.  If you are considering debt relief and bankruptcy options, then we recommend you consult with an attorney.

The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.

We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.

Do I Qualify for Chapter 7 Bankruptcy?

Posted on by Jessica Nomie

There are three initial considerations for Chapter 7 bankruptcy:

(1) Income:

To qualify for a Chapter 7 bankruptcy your gross income must be at or below the median household income for a household of your size. Sometimes this requirement is referred to as the “means test”. If your income is above the median household income for your state and household size, then with the help of a lawyer you might still be able to file a Chapter 7 bankruptcy, or else you will need to file a Chapter 13 bankruptcy.

(2) Type of Debt:

Certain debts to do not qualify for discharge in Chapter 7 bankruptcy. Credit card, medical, auto loan deficiency, and lease break debts are common debts that qualify for discharge in Chapter 7 bankruptcy. Debts that are not dischargeable in Chapter 7 bankruptcy include, restitution, certain tax debts, child support and student loans. You may need to file a Chapter 13 to pay these debts.

(3) Equity in Assets:

You are allowed to have some equity in assets if you file for Chapter 7 bankruptcy. You can have certain amounts of money in your bank account or may be able to keep your car. If your equity in assets exceed certain thresholds, then you could be forced to give up that asset in a Chapter 7 bankruptcy. To protect your property, you could file a Chapter 13 bankruptcy. You can keep all assets in Chapter 13 bankruptcy by paying back certain amounts of your debt back.

Call a lawyer:

There are several factors to consider when evaluating if you qualify for a Chapter 7.  Your particular case might be complicated or time sensitive. 

If you live in Oregon and have questions about bankruptcy, you can call our firm.  Jessica Nomie specializes in Chapter 7 bankruptcy and Chapter 13 bankruptcy. We offer  in person and virtual bankruptcy representation for individuals throughout the state of Oregon.

The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

Will My Bankruptcy Filing Impact My Spouse?

Will My Bankruptcy Filing Impact My Spouse?

Posted on by Jessica Nomie

Question: Can I File Bankruptcy Without My Spouse? Will It Impact Them?

Answer: Yes, you can file without your spouse. But, it might impact your spouse even if they don’t file for bankruptcy with you.

First, if you are married, you can file for bankruptcy without your spouse. They do not have to file with you.

However, if you file for bankruptcy without your spouse, then it could impact their credit if you share joint debts. If you and your spouse share debts, then your spouse would remain legally liable for the debt. That means, if they do not want their credit impacted by virtue of you filing for bankruptcy and they share an account with you, then they will need to make arrangements to continue payment on that debt.

Second, if you are married and your spouse does not file for bankruptcy with you, their income still matters. Even though your spouse does not want to file with you, and even if it makes sense that they not file, their income matters. What this means, is household income and budget are factors in your bankruptcy case. Determining whether you qualify for a Chapter 7 or Chapter 13 bankruptcy or determining your payment plan in a Chapter 13 bankruptcy would require disclosure of your spouse’s income. So, while your spouse’s name would not appear in your paperwork, it would be required to report their income.

Third, while your bankruptcy filing might not impact your spouses’ credit, it still impacts the household. If you are in a Chapter 13 payment plan, then that would impact the household budget. Further, you may have to pay your tax refunds into your Chapter 13 case. For that reason, and many others not listed in this article, your bankruptcy filing could impact your spouse.

There are other factors to consider when you are making the decision to file for bankruptcy. There are additional considerations when you share debts with someone else or are married. It is a good idea to speak to a bankruptcy attorney before deciding whether to file for bankruptcy. Jessica Nomie Law offers in person and telephone meetings, as well as same-day appointments.

The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.