OREGON BANKRUPTCY LAW FIRM
Portland Bankruptcy Myths
Are you uncertain about bankruptcy due to common misconceptions? Don’t let these misconceptions hinder your path to financial freedom. Read our article or consult our law firm to debunk these myths and gain a clear understanding of bankruptcy, empowering you to take control of your financial future.
MYTHS ABOUT BANKRUPTCY
BANKRUPTCY MYTH #1
Not true, with guidance and work, many people rebuild their credit score to 720 within two years of filing for bankruptcy and federal home loan programs exist so you can buy a home two years after bankruptcy.
BANKRUPTCY MYTH #2
This myth is often promoted by the credit card industry but is simply WRONG. Credit card and other consumer debts are eliminated every day by the bankruptcy courts.
BANKRUPTCY MYTH #3
BANKRUPTCY MYTH #4
This is not true, while bankruptcy relief can eliminate MOST debts, there are some debt obligations that the law generally does not allow you to discharge including child support obligations, spousal support obligations, student loans, most tax obligations, and court-ordered fines. Notice we said “generally does not allow”! Like many things in the law, there are exceptions and under the right circumstances even many of these debts can be eliminated, or at least the payment restructured, in bankruptcy.
BANKRUPTCY MYTH #5
This is not true, although the bankruptcy filing is a public record, almost nobody outside a bankruptcy professional knows where to find this information. Unless someone knows where to find the information and how to make a specific search, they will not learn of your bankruptcy and you are generally NOT required to notify your employer.
BANKRUPTCY MYTH #6
This is not true, bankruptcy is a legal process in the federal court system that involves significant paperwork, court appearances and hearings and many potential risks. Once you file for bankruptcy you CANNOT simply change your mind. We compare it to jumping off a diving board – you better look for a soft landing because you CANNOT undo the jump!
BANKRUPTCY MYTH #7
This is not true and recent history is a prime example. You did not create the Covid virus and nobody predicted that would happen. But it did. And as a result many thousands of Americans were instantly financially hurt by the economic drop. Add in the recent rise in interest rates and the inflation that we all feel at the grocery store and gas pump and guess what? You end up with a lot of financially responsible people who now find themselves in financial trouble and need help to get back on track.
BANKRUPTCY MYTH #8
This is not true, bankruptcy is a federal process that affords relief to people who need it but also balances the needs of creditors to get paid. There are significant “checks and balances” in the system that you must be aware of before filing or you might step on a landmine.
BANKRUPTCY MYTH #9
This is not true, the bankruptcy code is a federal law just like the tax code. Congress wrote laws allowing some tax debt to be eliminated by the federal bankruptcy courts. There are many hoops and lots of exceptions, but with the right guidance and some planning, many people eliminate tax debt every day throughout this country.
BANKRUPTCY MYTH #10
This is not true, bankruptcy is one possible solution and for many it is the “best of bad options.” But you should explore alternatives such as debt settlement, debt negotiation, or repayment workouts. If you meet with a bankruptcy professional to discuss your situation, make sure that professional also helps with these alternatives – or you may be railroaded into a bankruptcy that you do not want.
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Oregon Bankruptcy Relief
Stop looking back and face a future free of debtQUALITY REPRESENTATION. AFFORDABLE BANKRUPTCY PROTECTION.
Michael D. O’Brien is the Managing Partner of Michael D. O’Brien & Associates, P.C. and also supervises the Bankruptcy Practice Group. For nearly 28 years, Michael D. O’Brien & Associates, P.C. has helped individuals and families from Portland, Bend, Clackamas, Tigard, and nearby Oregon areas with affordable bankruptcy protection and Asset Protection strategies to solve debt and financial hardships. We are Portland bankruptcy attorneys serving the greater Washington, Multnomah, Clackamas counties. Our Bend, Oregon offices service our friends in Central Oregon.
Each fact pattern is unique, whether you need to file a Chapter 7 to protect against wage garnishment, an asset protection Chapter 13 to stop a foreclosure, or a Chapter 11 to restructure secured debt, our bankruptcy lawyers are here to help. Perhaps your debt problem can be solved through bankruptcy alternatives and our clients appreciate that we do not push for bankruptcy.
NATIONALLY-CERTIFIED CONSUMER BANKRUPTCY ATTORNEYS IN OREGON
Did you know? Two out of the only three nationally-certified consumer bankruptcy attorneys in Oregon are in our bankruptcy firm!
PORTLAND BANKRUPTCY LAWYERS
Client Testimonials
I was given the direction step-by-step in order to pay off my debt without having worries. I was also given directions for the things I need to get in writing on paper. The professional advice was “get your paperwork trail” after I got off the phone. The name and number were saved to my contacts. Much appreciated, Thank you!
Tim
Though I’m a new client, our first case evaluation over the phone felt that the lawyer knew his business and I felt that he was there to help me & without a doubt everyone else that is a client. I’d recommend this office to any & all!
Jay Hoak
Michael O’Brien is a true professional probably one of the best attorneys in the state maybe the country, the services I needed wasn’t his specialty but gave me a wonderful referral that has helped me for my needs. I highly recommend him, thanks Michael
K. Shields
“We are proud to be a debt relief agency with 2 out of the only 3 nationally-certified consumer bankruptcy attorneys in Oregon! We help people get relief through bankruptcy and non-bankruptcy alternatives.”
