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Jessica Nomie Law > The Legal Scoop – Oregon > Bankruptcy Assistance

Will My Bankruptcy Filing Impact My Spouse?

Posted on January 26, 2021January 26, 2021 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.

What Can Chapter 7 or Chapter 13 Bankruptcy Help With?

Posted on December 3, 2019January 23, 2020 by Jessica Nomie

Filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy can actually pave the way for a brighter future.

If anything in our society has a bad reputation, it’s “Bankruptcy”. The “B” word is not something many people throw around lightly. When they need to file for bankruptcy, they keep it to themselves. They often hesitate to pursue this solution to their financial problems. Often, they heavily resist going down this path to the extent that they struggle for years before they finally pursue this option. But why?

It’s true, bankruptcy is not an ideal financial situation for anyone. It’s also true that it will be reported on your credit and may cause your credit to take an initial hit. However, bankruptcy is meant to help people. You may have heard of a financial “fresh start”. This is a term that is often associated with bankruptcy. It may be cliché, but it is very true.

Bankruptcy is meant to be a tool to help you get a clean slate and rebuild your credit for a brighter and healthier financial future. After filing for bankruptcy, your credit score will begin to increase and you will eventually have the financial options that are not available to you right now. As you rebuild your credit, you may qualify for better interest rates on cars and loans, and even have the opportunity to purchase a home.

Bankruptcy is meant to help, so you don’t have to struggle forever. Bankruptcy is not a bad thing. It doesn’t make you a bad person. Life “happens” to good and responsible people. When life “happens”, you deserve a second chance.

What can bankruptcy help with?

The list below is not exhaustive and it does not address the specific rules regarding each particular debt and how it is treated in bankruptcy. Depending on what kind of debt you are facing, this may impact whether you will need to file for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. You will need to speak to an experienced bankruptcy attorney about the specifics of your case.

A Chapter 7 or Chapter 13 Bankruptcy can help with:

Wage and Bank Garnishments
Creditor Lawsuits
Harassing Phone Calls from Creditors
Identity Theft
Car Repossession
Home Foreclosure
Tax Debt
Unmanageable Credit Card and Medical Debt
Auto Loan, Lease and Other Loan Defaults
License Reinstatement
Other Government Related Debts
Credit Repair and Rebuilding

Contact Jessica Nomie Law today for your free and confidential bankruptcy consultation.

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

Common Bankruptcy Questions & Myths

Posted on April 18, 2019January 23, 2020 by Jessica Nomie

Part 3. If I file for Bankruptcy will I lose my tax refund?

Short Answer: It depends.

If you are filing for Chapter 7 Bankruptcy Protection, then you are likely able to keep your tax refund. Your attorney will list your refund in your bankruptcy schedules and then claim an exemption to protect your refund for you. In other words, you are allowed to have certain values of assets when you file for bankruptcy. Depending on your other assets, such as money in the bank, personal property, and more, you may be entitled to keep some or all of your tax refund. The rules around exemptions can be technical and complicated. It is best to consult with an attorney to ensure that your property is protected to the fullest extent possible. There could be situations when you must pay some or all of your refund towards your debts for the success of your Chapter 7 bankruptcy filing. Usually and in most cases, you will get to keep your full tax refund when you file for bankruptcy.

If you must file a Chapter 13 Bankruptcy, then the answer depends on your income and your bankruptcy plan. Generally, you are required to pay the full amount of your refund into your Chapter 13 Bankruptcy case when you are in a Chapter 13 Bankruptcy. This is part of your bankruptcy plan and required to be done to ensure the success of your Chapter 13 Bankruptcy. In some cases, you may be able to protect a certain value of your tax refund each year while you are in the Chapter 13 Bankruptcy. You can talk to your bankruptcy attorney to determine whether you are eligible for this protection of your tax refund. If you are eligible for this protection, then your attorney will discuss the details and requirements with you, including at what point you might be required to pay some of your refund into your Chapter 13 Bankruptcy.

Since the rules around refunds and exemptions of your property can be complicated, you should consult with an attorney before filing for bankruptcy to determine whether you will be entitled to keep your tax refund.

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

Common Bankruptcy Questions & Myths

Posted on April 1, 2019January 23, 2020 by Jessica Nomie

Part 2. I need to file for bankruptcy protection. Will I lose my car?

Short Answer: No. It is not true that you must give up your car if you file bankruptcy. When you file, you have the option to keep your car.

I’ve met with countless people who have stated that they’ve prolonged considering bankruptcy because they cannot “afford” to lose their vehicle. The truth is, if you file for Chapter 7 or Chapter 13 bankruptcy then in most situations you have the option to keep your vehicle.

If you own a vehicle and are considering bankruptcy, the first question I would ask you is whether your vehicle is secured by a loan. In other words; is your car paid off?

If you still owe money on your vehicle, then you would have the option to retain your vehicle in the bankruptcy and enter into a reaffirmation agreement with the lender. You can also choose to surrender, or “give up”, your vehicle. The choice is yours.

If you choose to keep your vehicle and your vehicle is secured by a loan, then you would elect to retain your vehicle in your Statement of Intention which is part of your bankruptcy filing. Your creditor would then send you (or your attorney) a reaffirmation agreement for you to sign and to be filed with the Court. A reaffirmation agreement is essentially a new contract between you and your creditor that will survive the bankruptcy. Simply put, you get to keep your car.

If your vehicle is secured by a loan and you do not want to retain your vehicle then you would indicate your intent to surrender your vehicle in your Statement of Intention. In this situation, the creditor can obtain permission from the Court to repossess the vehicle while you are in the bankruptcy, or may choose to wait until your bankruptcy is over before repossessing the vehicle. In either case, once the vehicle is repossessed and sold, the deficiency, or unpaid amount on your loan would be a discharged debt in your bankruptcy.

In some instances, you might have equity in your vehicle. If your vehicle is paid off, then you have equity in your vehicle. Similarly, if your vehicle is worth more than what is owed on it, then you also have equity in your vehicle. In these situations, we would discuss the value of your vehicle. In Oregon you are allowed to have $3,000 of equity in your vehicle that can be exempted in your bankruptcy schedules. Under federal law, the exemption is $3,775. In other words, your car can be worth up to the amount of the exemption and be protected. If your equity in your vehicle is more than the allowable exemption, then you may qualify for a “wildcard” exemption to protect the remainder of the equity in your vehicle.

There are situations when you might run into problems with the allowable exemptions. For example, if you have a significant amount of equity in your vehicle, or if you own multiple vehicles.

Even though it is a myth that you cannot keep your car when you file for bankruptcy, the bankruptcy rules are complicated. If you have one or more vehicles and you are planning to file for bankruptcy, then you should consult with a bankruptcy attorney to determine your options regarding your vehicle and to discuss the best ways to protect your assets when you proceed with bankruptcy.

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

Common Bankruptcy Questions & Myths

Posted on February 8, 2019January 23, 2020 by Jessica Nomie

Part 1. I stopped paying my bills. Can my creditor garnish my wages immediately?

Short answer: No. A creditor must first sue you in court and get a judgment against you before they can issue a garnishment to your bank or your employer.

It’s a common misconception among consumers that I speak to, that as soon as they stop paying a debt, that their paycheck or bank account can automatically be garnished by a creditor. While a creditor might scare you into believing that you must make a payment or else your next check will be garnished; the truth is that they cannot do this without first getting a judgment against you in Court.

What does this mean? The creditor must first file a lawsuit in court against you, serve you with that lawsuit and then go through the court system to get a judgment against you. Once they have done all of that, then they need to find out where you bank or where you work. Assuming they have (1) gotten a judgment in court; and (2) found out where you bank or work, then they can send a garnishment to your bank or employer. This process at the absolute quickest speed would take 2-3 months.

The bottom line is that, without a judgment, your creditors cannot issue a garnishment. It’s as simple as that.

You might ask, what about when your debt is transferred to a collection agency? The answer is still no; not until they go through the courts to sue you and get a judgment against you.

Please note that for almost any rule there is always an exception. It’s important to keep in mind that when you owe money to a government agency, such as the Internal Revenue Service or your state taxing agency, they do not have to sue you first. They can immediately contact your employer to start garnishing your wages.

If you can’t keep up with your bills, have stopped paying bills, have been served with a lawsuit or even a garnishment, or are not sure what kind of debt that you owe, then you should consult with an attorney about your options. The sooner that you consult with an attorney, the better positioned you are to protect yourself from the harsh reality of a bank or a wage garnishment.

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