Portland Bankruptcy Lawyer Blog

A good question came up the other day from one of my prospective bankruptcy clients. They asked what would happen to their real estate holdings in another country if they choose to file a Chapter 7 bankruptcy with my firm. They also asked if it was something that had to be disclosed since it was not in the U.S. The first question is a bit tricky so I'll address the second part first. Yes. You must disclose the foreign property in your bankruptcy petition. The law makes no distinction between your property located in the U.S. vs. property outside the U.S. If its yours it needs to be listed down in the petition. This would be the same logic if you had a bank account outside the U.S. You must disclose those in your Chapter 7; same goes for all your other assets.

Continue reading "Out of Country Property: Do I Have To List That Down in my Bankruptcy?" »

Portland Bankruptcy Lawyer Discusses New Mortgage Value Numbers:

In my bankruptcy practice most news releases that I monitor show the Portland, Oregon area in a negative light. While the info below is not great it does show the Portland area mortgage to value ratio's are holding somewhat firm and that for a change we are not the worst in the country.

"First American CoreLogic's Negative Equity Report shows about 24 percent of all Portland-area mortgage holders owed more on their home than it was worth on June 30. That's 114,585 mortgages and about $30 billion in total property value at risk of default. Statewide, about 23 percent were underwater. Nationally, the figure is about 32 percent. Nevada's rate is a stunning 65 percent. Read more from First American's news release. Calculated Risk's graph shows Oregon ranked 15th best in the survey when you include mortgages in negative equity and those near negative equity. Washington state was 16th. "

If your house is underwater water and you are facing trouble making your payments or are already behind, you might want to consider talking to a Chapter 7 or Chapter 13 bankruptcy lawyer to go over your options. Our firm has lawyers trained in getting positive results for our clients under the Bankruptcy laws. Feel free to call our attorney's to set up a no-cost consultation.

-Be well and enjoy the day

Portland Bankruptcy Lawyer Discusses the Failure of the Home Loan Modification Program

Despite all the hype, the much tauted home loan modification programs set up by congress to help troubled homeowners...aren't providing much help. I cannot say this surprises me. As a bankruptcy lawyer in Oregon I hear tales everyday of the long lines, unending document requests, no call backs and 9 month waits. Simply put these programs are not working as advertised. This article details some of those stories and provides some insight on the issue.

In my bankruptcy practice I have Oregon clients coming to me trying to do modifications as part of their overall financial restructuring which usually includes a Chapter 7 or Chapter 13 bankruptcy filing. I must warn them they should not be too optimistic in receiving a modification and we must plan their filing and future finances not relying on that modification coming through. A good bankruptcy lawyer should give their prospective clients both a best-case scenario and a worse case scenario so the client can make a good decision. Hearing more and more of these delayed and denied modification stories keep me from implemented them or relying on them as part of my planing process. I wish it was the other way around as a good modification may keep some of my clients from having to filing a Chapter 7 or Chapter 13 in the first place.

-"It is not what we get. But who we become, what we contribute... that gives meaning to our lives".-

Portland Oregon Bankruptcy Lawyer Discusses Dealing with your Car after a Bankruptcy.

Car loans and getting them straightened out during a Chapter 7 bankruptcy can be a maddening experience. Typically if you want to keep your car and you don't have significant equity in it then you'll be able to continue to make payments.

Typically after filing a bankruptcy petition all payments on the car loan will stop. Then shortly before or after your meeting of the creditors your attorney or you (if you file on your own) will receive a 'reaffirmation' agreement. This is basically a contract between the lender and you stating that you want to keep the car and can afford to make the payments after the Chapter 7 bankruptcy. Its really important to make sure that you get that agreement filed within 45 days of your hearing and long term that you'll be able to make those payments.

One of the selling points by lenders for those agreements is that they are reported on your credit file and can help re-hab your score by showing on time payments. If you read some of my other blog posts you can see my feelings on the need for a credit score at all. Assuming you do want a higher score then these agreements can help. You do need to make very certain either yourself or through your bankruptcy attorney that that agreement is filed and shows up on your report. I have heard of cases where the client didn't see the old car debt on his credit report then went out to buy a new car. Since there wasn't a payoff showing on the credit report he assumed he could but a new car and was able to. Shortly thereafter he received notice that his old car account was past due and the lender was going to repo the car and hold him responsible for the debt. Since it was reaffirmed it may be impossible for him to discharge it and he'd be stuck with the payments on the new car plus the old one. Not a good result. In general these agreements go smoothly and allow debtors to remain in the cars they enjoy and can afford, both during and after their Chapter 7 bankruptcy.

If you have any questions regarding a Chapter 7 bankruptcy, Chapter 13 bankruptcy or general creditor/debtors issues, our attorney's would be happy to go over your options and answer any bankruptcy questions you may have. Feel free to use the contact form or call us and we can set up a time to talk to one of our bankruptcy attorney's.

Live for today

Portland Bankruptcy Attorney discusses Project Runway Star Jerry Tam's Chapter 7 filing

Nobody is immune from filing a Chapter 7 Bankruptcy these days. Case in point is Project Runway star Jerry Tam recently filed for a Chapter 7 liquidation bankruptcy. In a sad case of rags to riches to rags; Mr. Tam cashed in his life savings and life insurance policies to launch his own fashion label. He quickly rose up the ranks of the fashion elite and gained prominence on the hit TV show Project Runway. Hope was high prior to his bankruptcy filing.

Citing weak economic conditions and a lack of sales and investor interest Mr. Tam filed his Chapter 7 bankruptcy. This type of filing means that his interest in the fashion label "form" will be liquidated and all of Mr. Tam's property, which is not exempt under State law, will be sold to pay off his creditors. Its an end to a promising label. But without financing and cash flow there was no way it seems for Mr. Tam to continue on. Sometimes a Chapter 7 filing can be the best way to reset a career and start a new direction. We wish Mr. Tam well.

If you have any questions regarding a Chapter 7 bankruptcy feel free to contact one of our bankruptcy lawyers at 503-213-3842 for an over the phone or in person consultation in our Portland Oregon or Tigard Oregon offices.

I get this question on at least a weekly basis. My clients and perspective clients would sometimes like to leave a debt off their petition or don't want to discharge it so want to leave it out. Sometimes its out of an obligation to the creditor (like a doctor or local business) or sometimes they may be embarrassed and don't want their bankruptcy publicly known. The short answer I give them: You must disclose it all.

When you sign your Chapter 7 petition you declare under the penalty of perjury that you have listed accurate data and that you have disclosed all your debts. The bankruptcy code does not allow one to pick and choose what debts to list down and be noticed about your bankruptcy filing. You simply must poor everything out.

All hope is not lost however. There are strategies that you can employ that can address the concerns noted above. Sometimes you can enter into reaffirmation agreements so that the creditor is repaid; sometimes the notice of the bankruptcy can be sent to an agent and not directly to the creditor. If this is a concern then its always a good idea to have a sit down with a knowledgeable bankruptcy lawyer in Oregon and see what we might be able to do for you; just don't ask us to leave out creditors...It wont happen.

"In three words I can sum up everything I've learned about life; it goes on..."