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Much of my practice today consists of consulting with clients who are interested in saving their real estate from foreclosure using Chapter 13 of the Bankruptcy Code. The discussions breakdown into two different categories - real estate that is used as a principal residence and real estate that is not used as a principal residence.

The typical principal residence in South Florida today has two mortgages -- what they used to called 80-20 mortgages. That is, two mortgages with the first mortgage in a amount of 80% of the value of the home and the second in an amount of 20% of the value of the home. As most real estate values in South Florida have dramatically declined, the homeowner is "upside-down" or "underwater." For example, $400,000 is owed on the first mortgage and $100,000 owed on the second mortgage and the real estate is now valued at $375,000. Upon the filing of the appropriate motions in Chapter 13, the Bankruptcy Court may hold that the second mortgage is wholly unsecured by property and therefore is an "unsecured claim" and its mortgage lien "avoided". An order is obtained from the Bankruptcy Court and recorded in the county public records to evidence that the mortgage lien has been avoided. It should be noted, that as to a principal residence, the second mortgage must generally be wholly unsecured in order to be avoidable. That is, there cannot be even one dollar of collateral value to secure its claim. But is it possible that the holder of the second mortgage might reduce its mortgage by agreement due to today's market conditions. In chapter 13, the first mortgage on a principal residence is generally not modifiable, although a homeowner is free to try to reach a voluntary modification with the mortgage company.

The rules are different as to non-principal residential real estate property or investment real estate. As with principal residential property, second mortgages can be wholly avoided. But in addition to being wholly avoided, second mortgage on non-principal residential property can be partially avoided or "stripped down". Usually though in today's market there is no difficulty in wholly avoiding a second mortgage. Although most first mortgages on principal residential real estate cannot be modified in Chapter 13, first mortgage on non-principal residential real estate may be modified. For example, take an investment property valued at $100,000 with a $150,000 first mortgage and $50,000 second mortgage. The second mortgage would be held as wholly unsecured and avoided. The first mortgage could be avoided to the extent the first mortgage exceeds the value of the property in the amount of $50,000. The question would then be how the remaining $100,000 first mortgage would be paid off. There are a few alternatives under the Bankruptcy Code and there are further alternatives that may be reached by agreement with the mortgage holder. The mortgage holder may be especially amenable to an agreement in today's market. One alternative may be to pay interest only on the $100,000 - for say four years - with the property to be sold or refinanced before the four years is over. Another would be to reamortize the the $100,000 secured claim mortgage at a new interest rate over fifteen to thirty years.

We are in a unique situation in South Florida today and the case law and procedures for addressing mortgages in Chapter 13 is dynamic, especially as to non-principal residential mortgages.(305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases.

Many prospective bankruptcy filers in Oregon are understandably concerned about the privacy of their filing. At least once or twice a year someone chooses to come in for a consultation with our firm because we have offices in four different cities. I guess the thought is I can meet these guys in Portland where I live, but they can file my bankruptcy in Salem where no one knows me. We can’t.
The good news though is it really doesn’t matter where we file because no one that matters is really going to find out. Filings are posted in the paper, but you really need to ask yourself, how much time do you spend poring over bankruptcy filings? The answer is that you haven’t and that you probably wouldn’t know where to look. In Portland, like most cities, the bankruptcy court doesn’t pay for bankruptcy filing posting in a major paper, like the Oregonian or even the Willamette Week. Filings are posted in the Portland Business Journal which has a circulation of about twelve and doesn’t have an online classified section. What about online?
In both Oregon and Washington, bankruptcy filings can be found online, but only if you have an account with the court’s search system and pay the eight cents per page for downloads.
Granted your bankruptcy filing will show up on your credit report for a period of time, though it will likely have only a fleeting impact on your actual credit score, but unless someone has a permissible purpose for obtaining a copy of your credit report, your secret is safe with Experian and Equifax. Frankly even the people who will have a permissible purpose for obtaining your credit report aren’t likely to read it. Your prospective car lender, doesn’t care about your history or your bankruptcy filing, he cares about your score.
The fact is bankruptcy lost its stigma a long time ago while being in debt has retained all of its negative connotations. I have been filing bankruptcies for almost fifteen years now and I have yet to have a single client come into our Portland or Salem, Oregon offices with a horror story about how the wrong people found out about their bankruptcy.
The original post is titled Who’s Going to Find Out About My Oregon Bankruptcy Filing? , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

Tax season often raises questions about what will happen to a tax refund if bankruptcy is filed.  This can be the best time to discuss your questions and concerns with an experienced bankruptcy attorney. In many cases it is about timing depending on your unique situation. It may be best for you to postpone your […]

Do I file jointly with my spouse or can I just file alone? Every prospective bankruptcy filer in the state of Oregon asks this question. Many Portland and Salem filers just don’t want their spouses involved, particularly if the would be filer just isn’t comfortable with the potential impact it could have on their spouse. For other prospective Oregon Bankruptcy filers, the idea of dragging their spouse through the filling process just isn’t particularly appealing.
Remember that if you file together in Oregon, the available exemptions for protecting your real and personal property will nearly double. The cost of filing bankruptcy will remain the same(well with our firm anyway) and you will get rid of all your spouse’s debts as well as yours.
You should consider that filing separately is still going to subject your spouse to some of the bankruptcy process. She won’t need to sign anything or appear at any hearing, but your attorney is still going to need all her paystubs for the seven months or so prior to filing and, as likely as not, her tax return, even if she filed separately. Moreover, your Oregon bankruptcy attorney will still need a summary of her ongoing living expenses.
The one upside to having your spouse not file is that the bankruptcy should not appear on her credit. The question is how much is that really worth if you have debts in common. In Oregon, chances are if some of your debt is jointly held, filing alone to save her credit is probably a mistake. In contrast, if you live right across the Columbia river in Vancouver, Washington, it might make all the sense in the world. For an explanation of why this is so or anything regarding a potential joint bankruptcy filing, please feel free to give me a call or set an appointment at either our Portland or Salem, Oregon Bankruptcy Law Offices or at our Vancouver, Washington Bankruptcy Law Office.
The original post is titled Joint Bankruptcy Filing in Oregon , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .