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If you have questions about filing for bankruptcy and in search of a Bankruptcy Lawyer in Portland Oregon, Attorney Tom McAvity has extensive knowledge of bankruptcy law and can provide sound legal counsel. To answer your bankruptcy FAQ, we can review your financial needs in a personal consultation to ensure you understand your legal options. For individuals in Portland, OR, our team can help you design financial goals suited to your unique circumstances and determine if bankruptcy is right for you.
What Can Bankruptcy Do for Me?
Bankruptcy can eliminate any legal obligation requiring you to pay all, or most of your debts. In some circumstances, it can stop the foreclosure of property by issuing an “automatic stay,” protecting your car or home. Bankruptcy can also ensure your utilities remain on, while you catch up on any missed payments. Filing for bankruptcy can put an end to wage garnishments and prevent creditors from attempting to collect unpaid balances.
Bankruptcy can eliminate any legal obligation requiring you to pay all, or most of your debts.
Is There Anything Bankruptcy Cannot Help Me With?
Filing for bankruptcy will not discharge debts that bankruptcy law singles out for special treatment. You must continue to pay child support, alimony, some student loans, restitution orders, and criminal fines even after filing for bankruptcy.
What Type of Bankruptcy Am I Able to File for?
Chapter 7 Bankruptcy: This option is appropriate for those with low incomes or for individuals with extensive expenses. Also called “straight” or “liquidation” bankruptcy, Chapter 7 allows you to sell certain types of property to pay creditors. Chapter 11 Bankruptcy: Also known as “reorganization,” Chapter 11 bankruptcy is designed for businesses with very large debts. This option enables organizations to pay debt over time. Chapter 12 Bankruptcy: This form of bankruptcy provides debt relief for family farmers or fishermen. It enables these individuals to restructure their expenses to avoid foreclosure.
Chapter 13 Bankruptcy: This type of bankruptcy is best for individuals with a regular income. An individual can design an installment plan to pay debts back using their current source of income.
Will I Have to Appear in Court?
In most bankruptcy cases, you will be required to meet with creditors and the bankruptcy trustee to address financial information and answer questions. You will only be required to appear in court if you need to dispute a debt.
What Happens to Anyone Who Has Co-Signed On My Loan?
Unfortunately, if a friend or family member has co-signed on a loan, he or she may be liable for your debt if you file for bankruptcy. However, these circumstances may be mitigated by filing for Chapter 13 bankruptcy.
Will Bankruptcy Help with My Student Loans?
Generally, students will not be affected in bankruptcy. However, there are two exceptions to this rule:
If a student loan is not insured or guaranteed by a unit of the government, the loan may be discharged. If paying back the loan will “impose an undue hardship on you and your dependents,” then the student loan may be discharged.
Tom McAvity can review the details of your student loans to determine whether these circumstances apply to you.
How Can I Make Creditors Stop Calling Me Regarding My Past Due Bills?
When you file for bankruptcy, all creditors and bill collectors must stop collection efforts entirely once they are aware you have filed. If any creditor continues to try to collect after they have been made aware of your bankruptcy, they may be sanctioned in court.
Contact Us Today to find your Bankruptcy Lawyer in Portland Oregon
While dealing with financial complications can be overwhelming, Northwest Debt Relief Law Firm can help you manage your unique circumstances. If you have additional questions and in need of a Bankruptcy Lawyer in Portland Oregon, contact Tom McAvity by calling (503) 828-0964 to schedule your personal consultation.
The post Answers To Common Bankruptcy FAQ appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.

There is a fairy tale that a good credit score will get you a better life.
Fairy tales are not the way to make adult decisions.
We know that most fairy tales are fables designed to teach children a healthy respect for rules and society’s expectation.  Some fairy tales were written to scare children to stay away from “bad places”, while others teach children to trust their common sense.
Is there truth behind the fairy tale that a good credit report will open the door to a better home (therefore better schools) and a better job?  To some extent the answer is ‘yes’, but for the most part that is false advertising promoted by creditors, banks and, sometimes, our government.  Their goal is to have everyone spend more money which equals higher profits, growth for the creditor and more taxes for the government.
Trying to get a good credit score can be like kissing a frog.
Is getting a good credit score like kissing a frog?
Where most of us go wrong is assuming that taking on debt will automatically lead to an increase credit score.  You have to pay the debt in order for the credit score to improve.  If life happens (you lose your job, are injured or divorced) it will mean you cannot pay the new debt which will automatically mean your credit score will be lowered.  A lower credit score equals (1) higher interest rate for EVERYTHING (house, car and credit cards), (2) your insurance costs will increase, (3) you will have a harder time finding a place to live in a good neighborhood (good neighborhoods usually  mean good schools), (4) harder to find or keep a good job (jobs now use credit scores as part of hiring or retaining employees), (5) plus so much more than I can cover here.
The point: Credit scores are important, but NEVER take out debt for the sole purpose of increasing your credit score.
Now if you are a multi-millionaire then you rarely worry about paying debts, but the rest of us live in the real world and must be concerned about feeding our families and getting to work in a dependable vehicle.
Why do so many believe that a credit score is a way of gauging their self-worth?

One woman refers to her credit score as “the most important thing in my life, right now, well besides my babies,” as “that darned thing is destroying my life,” and as “my ticket to good neighborhoods and good schools for my kids.”

Where I am coming up with all this?  Thirty, plus years of working in the bankruptcy world has opened my eyes to the abuses suffered on the young, lower and middle class by the business and banking worlds.  I suggest you read Duke Law Professor Sara Sternberg Greene’s paper The Bootstrap Trap.  This paper has some great insights about the problems that arise when low-income households try to live the life they see portrayed on TV and in romance novels.
Debt relief scams, pay day loans, title loans and most student loans are NEVER a way to help stabilize your income and protect your future. Until we learn how to control our finances (no you do not need the latest I-Phone), how are we going to teach our children?  Please stop letting TV ads dictate what you should buy and how you should live.  Trust yourself – USE YOUR COMMON SENSE.

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About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. As a teacher and retired law professor, Diane believes in offering everyone, not just her clients, advice about the Arizona bankruptcy and foreclosure laws. She is also a mentor to hundreds of Arizona attorneys.
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article.  Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*

The post Help – My Credit Score is Destroying My Life appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

By Liz Dominguez

Student loan debt is one of the major home-buying challenges for the millennial generation.

According to a survey by the National Association of REALTORS® (NAR), 83 percent of surveyed millennials said they are delaying their home-buying plans by a median of seven years in direct correlation to their student loan debt.

In today’s financial landscape—even with options such as loan consolidation, repayment restructuring and earnings-based, graduated payments—millennials are having difficulty paying bills, let alone freeing up their debt-to-income ratio and saving for a down payment.

For those struggling with overbearing debt, bankruptcy can be an intimidating option that is saved as a last resort; however, since 1998, student loan borrowers were not eligible for discharged student loans through bankruptcy until 2005, when Congress added an “undue hardship” condition, according to the Wall Street Journal. Even so, the law does not clearly define what it considers “undue hardship,” giving banks—which rarely grant loan forgiveness—the deciding power.

On Wednesday, the Education Department announced it is looking to clarify what constitutes “undue hardship” to give student loan debtors a better chance at having their loans expunged, and opportunities for more borrowers to apply for bankruptcy if needed.

“The U.S. Department of Education seeks to ensure that the congressional mandate to except student loans from bankruptcy discharge except in cases of undue hardship is appropriately implemented while also ensuring that borrowers for whom repayment of their student loans would be an undue hardship are not inadvertently discouraged from filing an adversary proceeding in their bankruptcy case,” according to an Office of Postsecondary Education, U.S. Department of Education statement.

While bankruptcy does not eliminate the option of home-buying, it does delay the process, as most lenders will not grant mortgages unless a period of time has passed. In order to understand what the overall impact may be, the most common types of bankruptcy must be considered:

• Chapter 7 – Liquidates assets to pay as much of the debt as possible—a blank slate in the financial world.
• Chapters 11 and 13 – Restructures the debt and sets up a repayment plan approved by the court. Chapter 11 has no limit on the amount of money owed, while Chapter 13 filers must have a steady income less than $394,725 in unsecured debt and less than $1,184,200 in secured debt, according to Debt.org.

According to realtor.com®, most individuals who file for bankruptcy will have to wait at least two years before they are considered for a home loan; and lenders are more lenient with Chapter 11 and 13 bankruptcy filers. It is also highly dependent upon each individual’s personal experience and the type of loan being applied for—some may have to wait up to four years. Credit also needs to be taken into consideration, as it can depend on how quickly an individual repairs their credit score; however, certain loan programs that can help millennial buyers purchase with low down payments and low credit scores, such as FHA and VA loans, may be less stringent with their bankruptcy restrictions.

As student loan debt is a widespread home-buying obstacle for the millennial generation (and may be passed along to future generations, as well), it is crucial that the problem be addressed within the real estate community. Is the solution in more lending programs with lessened restrictions or increased eligibility for bankruptcy?

Some sources say that increasing bankruptcy eligibility to expunge more student loan debt will only spur heightened interest rates by lenders and increased tuitions by educational institutions. If that is the case, future generations will have even more difficulty managing their student loan debt repayment and saving for a down payment. A rise in bankruptcy applicants may, however, incentivize the creation of more government-sponsored mortgage programs targeted toward those suffering from high student loan debt.

The Education Department is seeking public comments on which factors should be considered “undue hardship” in bankruptcy cases dealing with student loan debt. Interested individuals must submit their responses by May 22, 2018 through the Federal eRulemaking Portal or via U.S. mail, commercial delivery or hand delivery to Jean-Didier Gaina, U.S. Department of Education, Office of Postsecondary Education, 400 Maryland Avenue SW, Washington, DC 20202-6110.

© 2018 RISMedia. All Rights Reserved.

By Aaron Elstein

First Jersey Credit Union of Wayne, N.J., was closed Wednesday by the National Credit Union Administration. Its accounts were transferred to the USAlliance Federal Credit Union of Rye, N.Y. First Jersey had more than 9,000 members and $86 million in assets.
Like Melrose Credit Union, Montauk Credit Union and Lomto Federal Credit Union, First Jersey was seized after too many of its taxi-medallion loans went bad. Keith Leggett, an economist who tracks credit unions, estimates that taxi medallions accounted for nearly 20% of First Jersey’s loan book at one point. Medallions in New York have lost about 80% of their value in the past five years amid the rise of Uber and other e-hailing apps.
First Jersey, chartered in 1929, hasn’t had a profitable year since 2013. It piled up about $15 million in losses during the past four years.
The credit union had been trying to avoid the fate it suffered Wednesday by auctioning medallions. 
On Jan. 11 in the rotunda of the state Supreme Court building, it sold six to a bulk buyer for $1.11 million, or $185,000 apiece. In early 2014 individual medallions were selling for about $800,000. Prices are much lower now because medallions generate less revenue than they once did and because once-prolific medallion lenders are no longer financing such purchases.
© 2018 Crain Communications Inc.  All rights reserved.