{"id":36259,"date":"2021-10-08T09:00:09","date_gmt":"2021-10-08T16:00:09","guid":{"rendered":"https:\/\/pdxlegal.com\/?p=36259"},"modified":"2023-01-13T03:24:41","modified_gmt":"2023-01-13T11:24:41","slug":"when-should-you-declare-bankruptcy","status":"publish","type":"post","link":"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/","title":{"rendered":"When Should You Declare Bankruptcy?"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Knowing_Your_Options_in_Solving_Debt_Problems\"><\/span><strong>Knowing Your Options in Solving Debt Problems<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6629db9c61992\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629db9c61992\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Knowing_Your_Options_in_Solving_Debt_Problems\" title=\"Knowing Your Options in Solving Debt Problems\">Knowing Your Options in Solving Debt Problems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#What_Happens_When_You_File_for_Bankruptcy\" title=\"What Happens When You File for Bankruptcy?\">What Happens When You File for Bankruptcy?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Put_the_automatic_stay_in_place\" title=\"Put the automatic stay in place.\">Put the automatic stay in place.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Assign_a_bankruptcy_trustee_to_your_case\" title=\"Assign a bankruptcy trustee to your case.\">Assign a bankruptcy trustee to your case.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Allow_bankruptcy_exemptions\" title=\"Allow bankruptcy exemptions.\">Allow bankruptcy exemptions.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Pay_off_all_your_qualified_unsecured_debts\" title=\"Pay off all your qualified unsecured debts.\">Pay off all your qualified unsecured debts.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Debts_Qualified_for_Dismissal\" title=\"Debts Qualified for Dismissal\">Debts Qualified for Dismissal<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Secured_Debts\" title=\"Secured Debts\">Secured Debts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Unsecured_Debts\" title=\"Unsecured Debts\">Unsecured Debts<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/#Talk_to_a_bankruptcy_attorney_in_Portland\" title=\"Talk to a bankruptcy attorney in Portland!\">Talk to a bankruptcy attorney in Portland!<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Almost everyone has debts. Even a whole country borrows from an international fund or from other countries to sustain their needs. But not everyone can or has managed to keep up with paying their debts, especially with the current happenings worldwide. The pandemic has affected a lot of businesses and people. When things like this happen, it is inevitable to miss a loan payment for a month or two. Then it piles up, and it becomes non-manageable and stressful due to creditor harassment, an impending foreclosure, or repossession of property.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before this happens to you, it is best to know your options. So, what are your options to pay off your debts?\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/pdxlegal.com\/time-heals-credit\/\">Consumer Credit Counseling<\/a> &#8211; a credit counseling agency will work with you to develop a payment plan that\u2019s within your budget. The agency will place on a debt management plan which usually takes three to five years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/pdxlegal.com\/oregon-debt-alternatives\/\">Negotiate with Creditors<\/a> &#8211; it is always best to be direct with your creditors about your financial issues and maybe develop a repayment plan with them.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Debt consolidation Loan &#8211; this method combines all your unsecured debts into a single monthly payment. But this one requires you to have a good credit score.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Filing for bankruptcy &#8211; should be the last resort among this list of options. But even so, most people would choose this over any other options as this legal proceeding gives you bankruptcy protection from creditors.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Whichever option you take, make sure always to do your research and ask for legal assistance from a<\/span><a href=\"https:\/\/pdxlegal.com\/\"><span style=\"font-weight: 400;\"> reliable bankruptcy attorney in Portland.<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Happens_When_You_File_for_Bankruptcy\"><\/span><strong>What Happens When You File for Bankruptcy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you have missed some payments for your debts and getting back on track on payments seemed impossible somehow, then maybe you should <a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\">file for bankruptcy<\/a>. Yes, it will stay in your credit and significantly affect it, but declaring bankruptcy would be better than stressing out too much on avoiding constant calls from debt collectors and losing your property over an unpaid debt.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under the <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/11\" target=\"_blank\" rel=\"noopener\">United States bankruptcy code<\/a>, when you file for personal bankruptcy in Portland, the bankruptcy court should:<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Put_the_automatic_stay_in_place\"><\/span><b>Put the automatic stay in place.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The <a href=\"https:\/\/pdxlegal.com\/bankruptcy\/automatic-stay\/\">automatic stay<\/a> is a provision in the United States bankruptcy law that temporarily halts debt collection by creditors, <a href=\"https:\/\/pdxlegal.com\/chapter-7\/will-keep-car\/\">car repossession<\/a>, a <a href=\"https:\/\/pdxlegal.com\/foreclosure-defense\/\">home foreclosure<\/a>, and <a href=\"https:\/\/pdxlegal.com\/consumer-protection\/protect-wages-from-garnishment\/\">wage garnishment<\/a> during the bankruptcy case.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Assign_a_bankruptcy_trustee_to_your_case\"><\/span><b>Assign a bankruptcy trustee to your case.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The United States Trustee appoints a bankruptcy trustee to represent and handle your assets during a bankruptcy case.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Allow_bankruptcy_exemptions\"><\/span><b>Allow bankruptcy exemptions.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you have properties you wish to keep after bankruptcy, you are legally allowed to <a href=\"https:\/\/pdxlegal.com\/bankruptcy\/exemptions\/\">file for exemptions<\/a> to protect those assets.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pay_off_all_your_qualified_unsecured_debts\"><\/span><b>Pay off all your qualified unsecured debts.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You will then be cleared from paying off your unsecured debts if you have passed the qualifications for a bankruptcy petition and the bankruptcy proceeding has successfully ended.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Debts_Qualified_for_Dismissal\"><\/span><b>Debts Qualified for Dismissal<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In filing a bankruptcy petition, you are legally obliged to list all of your properties and debts on the bankruptcy form. Not doing so will affect the outcome of your bankruptcy hearing. But you should remember that not all kinds of <a href=\"\/debts-survive-chapter-13-bankruptcy\/\">debts are qualified for discharge after a bankruptcy<\/a> case.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Secured_Debts\"><\/span><b>Secured Debts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are different types of debts. A secured debt or debt with collateral which the creditors can repossess should you stop paying for it. Examples of secured debt are <a href=\"https:\/\/pdxlegal.com\/portland-bankruptcy-attorneys-help-cure-mortgage-default\/\">mortgage loans<\/a> and car loans.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Unsecured_Debts\"><\/span><b>Unsecured Debts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Another type of debt is unsecured debt or loans without collateral.\u00a0 This type of debt is also subdivided into two categories: priority and nonpriority.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A nonpriority unsecured debt is a general unsecured debt like unpaid credit card bills, utility bills, payday loans, medical bills, and in some cases &#8211; student loans.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Priority debts are debts without collateral but have higher priority over your other debts under federal law and would be non-dischargeable even after a bankruptcy case. Most common examples of which are: tax obligations, child support, alimony, personal injury award due to intoxication, and criminal fines.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There\u2019s an ongoing discussion about whether the court should consider a student loan a priority or non-priority debt, and the bankruptcy court decides that. The court determines which debts are a priority and non-priority, and all debts that don\u2019t fall under a priority debt are qualified to be discharged.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Talk_to_a_bankruptcy_attorney_in_Portland\"><\/span><strong>Talk to a bankruptcy attorney in Portland!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Yes, the whole process of filing for bankruptcy can be expensive. Still, it can also become time-consuming, and if you don\u2019t know a lot of legalities or don\u2019t understand the law that much, it might become a disaster and cause more significant problems in the future. Suppose you are still unsure what to do about your financial issues, and you need more help understanding your <\/span><a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\"><span style=\"font-weight: 400;\">bankruptcy options<\/span><\/a><span style=\"font-weight: 400;\">. In that case, you may visit our <\/span><a href=\"https:\/\/pdxlegal.com\/contact\/\"><span style=\"font-weight: 400;\">Portland bankruptcy law firm<\/span><\/a><span style=\"font-weight: 400;\"> and get legal assistance from our team of experienced bankruptcy lawyers.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Knowing Your Options in Solving Debt Problems Almost everyone has debts. Even a whole country borrows from an international fund or from other countries to sustain their needs. But not everyone can or has managed to keep up with paying their debts, especially with the current happenings worldwide. The pandemic has affected a lot of [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":36265,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36259"}],"collection":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/comments?post=36259"}],"version-history":[{"count":5,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36259\/revisions"}],"predecessor-version":[{"id":37388,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36259\/revisions\/37388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media\/36265"}],"wp:attachment":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media?parent=36259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/categories?post=36259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/tags?post=36259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}