Portland Bankruptcy Lawyer Blog

So like it or not every bankruptcy lawyer in Portland has probably had a question like this come up. The client is worried about loosing their stuff as part of a Chapter 7 bankruptcy filing. They have a sentimental item they don't want to part with or just don't think their creditors should not be able to get paid back from its sale. They come to an attorney and look for a way to hide these items. Can they do it...absolutely not.

Usually with a chuckle I have to inform these clients that we must disclosure everything they owe and be 100% honest in the entire filing. If you do that then usually the bankruptcy filings go very smoothly. Do it not (as yoda would say) and you can get screwed. Perjury and fines come to mind; plus if you talk your lawyer into doing it, they could loose their license. So what to do?

A skilled bankruptcy attorney should be able to find an exemption for the item you are looking for. Clients seem to forgot that there are exemptions for jewelry, home equity, mobile homes, furs, livestock, firearms, etc. In my practice I can usually find protection for my clients items; it just comes down to value. The problem I've found with clients seeking a quick fix to their asset problem is that they are overvaluing the item they are trying to hide. Once I dig into their case and see what it is they are talking about and talk with them on how to properly value these items and they provide back that data we see that it easily falls within an exemption and is protected. This is a much better route then playing games and trying to hide the items...believe me the Court and Trustee has seen it all and will find it; much better to be honest and comply with the court and have a clean filing. Honestly is always the best policy.

Have a prosperous day

Today issue is a common one in my bankruptcy practice and as a lawyer I'm presented with this question all the time. What to do with my student loans when I'm filing for bankruptcy? The hard part for me is that the answer is pretty simple and not one that I like telling. Basically you are going to be stuck with your student loans.

The law is very clear that student loans are darn near impossible to discharge in a chapter 7 bankruptcy filing. As a lawyer and working with my bankruptcy clients I would have to show that the debtor has no good faith or likely way to pay back the loans in their lifetime. Basically a case of extreme hardship. The bankruptcy courts have ruled that there is a very narrow definition of hardship and granting requests for discharge on student loans are pretty rare.

Continue reading "Bankruptcy and Student Loans: Are you stuck with them forever?" »

I'm sure this is heresy, but I'm here to tell you that it is not required to have a lawyer to file a Chapter 7 bankruptcy in Oregon. I'm sure this sounds odd coming from a Bankruptcy attorney but its honest. Not all cases require the help of an attorney and in many cases the persons finances would preclude them from paying for an attorney in the first place. I'm not trying to cost myself business but I think its important to be honest with people and make sure they understand all their options attorney use or not.

Continue reading "Bankruptcy and Lawyers: Do you really need one to file a Chapter 7?" »

Its important this time a year to talk about filing your taxes and its possible effect on your bankruptcy. As a Chapter 7 bankruptcy lawyer I see my practice get busy around Feb and March every year and as part of that I also see more issues with clients tax refunds.

In many cases if a client files their bankruptcy petition before the refund has been issued then that refund in its entireity can become property of the bankruptcy estate. If you wait to file your return and haven't filed it before sending in your bankrutpcy petition the U.S. Trustee may hold the 341 hearing open until your tax refund has been filed and any refund amount determined. Either way you may loose that refund.

Its very important where you think you may be entitled to a refund to talk with your bankrutpcy lawyer before filing and inform them of what your tax status is. There may be legal ways to exempt some of those funds or protect them before filing so you and your family can make use of the money. As always talk to a lawyer first because the law varies in each State and the issues surrounding refunds are complex.

-Be Well

Today let's talk about a pretty common objection I get from creditors. I probably see the most from Best Buy and their financing arm. The issue revolves a client taking out a best buy credit card then purchasing a lap top, dish washer, or a bunch of Chuck Norris DVD's. They may have done this a year before talking to me and filing for a Chapter 7 bankruptcy. Shortly after filing I get a notice from the creditor that there is a purchase money security interest in the goods and that my client either needs to reaffirm or surrender the goods. In my view this is garbage and hardly enforceable.

Continue reading "Oregon Bankruptcy and Security Interests: The Case of Best Buy and the Old Laptop" »