Bankruptcy

When you are having financial issues in Oregon or Washington, a bankruptcy attorney can help you weigh your options and make a choice to help you get your finances and your life back on track. At PDX Law Group, our expert attorneys have helped countless clients take care of their debt. We will provide you with experienced, careful guidance from experts that you can trust to help you shape your financial future.

As unpredictable as life can be, sometimes events happen that require the advice and representation of a quality legal professional. Our attorneys understand the complexities of bankruptcy law, and they know that it may not be the most suitable option for everyone. If you are struggling to pay your bills or are facing a seemingly endless amount of debt, filing for bankruptcy may be what you need to do in order to get your life back in order.

Chapter 7 bankruptcy is what some people call “Straight Bankruptcy.” It is a way to get rid of your unsecured debts (e.g. credit cards, medical bills, personal loans, payday loans, etc.) and get a fresh start in life. In return for getting rid of your unsecured debts the court has the right to sell any property you own that you cannot protect. The court does this by appointing a trustee to take possession of whatever property you own that you cannot protect, sell it and use the money to payoff as much of your unsecured debts as possible. After the money from the sale of your things is gone, the remaining debts are discharged (i.e. wiped away) and your personal obligation to pay them in the future is gone. Your case is then closed.

Chapter 13 is a way of having some or all of your debts paid back over time out of your wages. Like a Chapter 7, you list all of your property and all of your debts. But unlike Chapter 7, you get to keep all of your property. Instead of selling your property to pay your debts, the court accepts monthly payments from you for 3 to 5 years. Those monthly payments are used to pay your debts. The main reason you may choose to file a Chapter 13 is because you can catch up on mortgage payments and/or car payments on which you are behind as of the date of filing. This means you will not lose your house and/or car in Chapter 13, so long as you keep your payments current after filing bankruptcy. Another benefit is that my attorney fees can generally be paid out of the monthly payments that you make to the court. Chapter 13 also gives you the ability to reduce the amount you must pay to a creditor for your car if you bought the car over two and a half years ago. If you did, you can reduce what you owe to the fair market value of the car and you can reduce the interest rate that you pay on that amount to about 6%. Even if you bought your car within the past two and a half years, you can still reduce the interest rate that you pay on the balance due as of the date you filed bankruptcy to about 6%.