Oregon Bankruptcy Archives - Jessica Nomie Law

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

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.

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.

Common Bankruptcy Questions & Myths

Posted on June 25, 2019January 23, 2020 by Jessica Nomie

Part 4. I hired a bankruptcy attorney, so I filed for bankruptcy.

Short Answer: No. This is NOT true.

You have not filed your bankruptcy until your petition, schedules and other required documents have been filed with the bankruptcy court. Simply hiring a bankruptcy attorney or declaring that you “are filing for bankruptcy” does not mean that you have filed for bankruptcy protection.

How do you know if you filed for bankruptcy protection? If you have met with your attorney to sign your bankruptcy petition and schedules, then this is a good indicator that your case has been filed or is about to be filed. If you are unsure, you should ask your attorney when your case will be filed. Sometimes, your attorney will have you come in to sign your petition and schedules; however, will tell you that your case won’t actually be filed until a later date. You might know your case has been filed because you have a case number. Again, you can ask your attorney for your case number if you think your case has been filed. If you are confused or unsure whether your bankruptcy has been filed, then you should immediately consult your attorney for clarification. There is a critical distinction between having hired an attorney and actually filing your bankruptcy case. This distinction includes different legal protections that are offered to someone when they have hired an attorney, and when they have actually filed for bankruptcy.

You do not have the protections of bankruptcy such as the imposition of the automatic stay, unless and until you have an active bankruptcy filing. In other words, you are not protected by bankruptcy law until you file your bankruptcy case. The automatic stay of bankruptcy, which prohibits creditors from collecting from you during your bankruptcy case, does not become effective simply because you have hired an attorney and/or declared your intent to file for bankruptcy protection. The reality is that you must actually file your case with the Court before you are entitled to the protections of bankruptcy, and before you are “in” bankruptcy. Once you have filed your bankruptcy case with the court, the automatic stay that is described above will take effect and act as a prohibition on all pre-petition creditors from attempting to collect from you.

This brings up a point that is commonly misunderstood by consumers who will be filing for bankruptcy. Declaring your intent to file, such as telling a creditor that you are going to file for bankruptcy, will not stop that creditor from taking collection action against you. Until you file for bankruptcy protection, a creditor can continue collection activities against you, including sending statements, calling you, and even pursuing legal action against you. In some situations, your attorney may be able to stop harassing phone calls from creditors even though you have not yet filed your bankruptcy. Jessica Nomie Law can help with this.

As always, if you ever have questions or concerns about your case status, then you should consult with your attorney.

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.