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. 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.

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.