Cars and Bankruptcy in Oregon and Washington

In figuring out what to do with a car in bankruptcy, the most important issue is, not surprisingly, the value of the car. Once you determine the private party Kelley Blue Book value of the car, the next step is determining the amount of your equity. If you subtract the amount that you owe on the car from the private party value of the car that will give you a good idea of what your equity is in that vehicle. In most cases, you can protect your car using the allowable bankruptcy code exemptions.  The bankruptcy courts in both Oregon and Washington understand you need a car to get to work and to pick your kids up from school. So long as you aren’t driving an antique classic car, you will likely be able to keep it.  

If you live in Washington, you will most likely be able to claim either the Washington State Bankruptcy Exemptions or the Federal Bankruptcy Exemptions in order to protect your car. In Oregon, you will most likely be limited to the Oregon Bankruptcy Exemptions. Regardless of whether you live in Oregon or Washington, your car is likely protected.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

About Me

I’ve been a consumer bankruptcy lawyer since 2002, helping people get out of debt in both Washington and Oregon. I am the managing attorney of Northwest Debt Relief Law Firm. We have bankruptcy law offices in Vancouver, Washington and in both Portland and Salem, Oregon.

I grew up in Washington, D.C. but was lucky enough to move to the Pacific Northwest in 1995. When I am not practicing bankruptcy law, I spend the bulk of my time either on a yoga mat or with my wife and golden retriever, Mayzie.

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Posted in About Me  |  By: Thomas McAvity

List Every Debt in Your Bankruptcy

It can often be difficult to convince clients that that they need to include all of their debts in bankruptcy.  Generally this stems from the fear that if they list a house with a mortgage or a car with a car loan, they will lose their car or home in the bankruptcy proceeding  

The confusion stems from the difference between scheduling a debt and discharging the debt.  Debtors are required to list all their debts; however, debts are not necessarily discharged just because they are listed.  For example, the Bankruptcy Code specifies a number of debts that cannot be discharged in bankruptcy.  Those debts must, however, still be listed on the Schedules of the bankruptcy petition.   

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Posted in Bankruptcy Information  |  By: Thomas McAvity

What is a Lien?

The determination of whether a debt is secured or unsecured hinges on whether there is a lien with respect to the property. 

In general terms, a lien is a claim against specific property. Typically, the claim belongs to the person or the business that is owed a debt, usually a debt related to the property. It is sometimes called a “security interest”. A lien may be consensual, meaning that a person owning property agreed to having a lien against it. A lien may be involuntary, meaning that the lien was created either by a governmental entity or by a person authorized to create a lien by law.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

Top Ten Tips for Dealing with Collectors in Oregon and Washington

1. Insist on specific information about the debt. Tell the collector you will not discuss the debt until you receive the documents and review them. That is the law — within five days after you are first contacted, the collector must send you a written notice detailing the amount of money you owe, the name of the creditor and what action you should take if you believe you do not owe the money.
2. Any behavior by a debt collector toward a consumer over the phone, in writing or in person that is disrespectful or unfair is illegal, as are any false statements. You have the right to sue the collector for monetary damages for his misconduct.
3. If you believe that you don’t owe the money — the collector is in error, the debt is so old that the statute of limitations has run out, or you have been a victim of identity theft — send the collection agency a letter stating that you do not owe the debt. You must do so within 30 days after receiving written notice. But if the collector sends you proof that you owe the money, he can resume contacting you.
4. In any phone conversation with a debt collector, ask for and write down the name of the agency, the caller and the phone number. Keep a log of contacts, recording the date and time of the call, the collector’s name and agency, and a summary of the conversation.
5. Send correspondence to debt collectors by certified mail and request a return receipt. Keep a copy of the return receipt and of correspondence with the collector.
6. If you do owe the debt and decide to pay, get a statement of the amount you owe before sending money. You may be able to negotiate a lower amount. Send a cover letter with any payment outlining the terms under which you are paying, as well as identifying information about the debt. Also, send payments by certified mail and request a return receipt.
7. Do not take abuse from debt collectors — simply hang up. Also, you do not have to give them personal information, such as your Social Security number or the name of your employer.
8. Be aware that debt collectors cannot contact you at unreasonable times; harass, oppress or abuse you; threaten violence or harm; use obscene language; or repeatedly annoy you by phone. They cannot make false statements, such as implying they are attorneys or government representatives, or claim that you will be arrested if you don’t pay your debt. They also cannot collect an amount greater than your debt, unless state law permits.
9. If you believe a debt collector has violated the law, you have the right to sue him in state or federal court within one year of the date of the violation.
10. Report problems with debt collectors to your state attorney general’s office and the Federal Trade Commission. You can also contact your military legal assistance office.  

Posted in Bankruptcy Information  |  By: Thomas McAvity

Dealing with Collections Agencies in Oregon and Washington

In Oregon and Washington, if you stop making full payments on your bills, a creditor will likely turn your account over to a collection agency, a business that specializes in collecting unpaid bills. It is legal for a creditor to turn your bill over to a collection agency regardless of whether you’ve offered to make small payments on your bill and even if you’ve told the creditor that you would make full payments as soon as you could.  Once an account is transferred, collection agencies can start sending you correspondence, calling you at home and demanding that you to pay the bill. They must, however, stop doing so if you send a letter that either asks them to stop, or tells them that you will not pay the debt. If you send this type of letter, the collection agency is only allowed to contact you one more time, and only to tell you either that they will stop contacting you or that they may take some kinds of legal actions. Make sure to keep a copy of the letter that you send, and make a note as to the date, time, and location from which you send it. Collection agencies can collect late charges and interest on the debt that is owed if there is a written a written agreement allowing it. If there is no contract, they can collect interest of up to 9 percent each year on the amount of the unpaid bill. They cannot charge you for their own collection costs, such as long distance phone bills. If a collection agency is harassing you, write a letter to them and tell them to stop contacting you. Always keep a copy of the letter, and make a note as to the date, time, and location from which you sent it. If the collection agency keeps calling and writing or does other things they legally cannot do, keep a record of what happened, who you spoke with and what was said. Try to have someone listen in on phone conversations you have with the agency so you have a witness. Keep any collection notices you receive in the envelopes in which they were mailed. Do not write on them. You can sue the collector if they do anything illegal when trying to collect a bill. If you win your case, the collection agency will have to pay you money damages plus your lawyer’s fees. Contact a lawyer if you think the creditor did anything unlawful when trying to collect the debt. Original creditors are subject to Oregon law that, on a more limited basis, prohibits certain types of abusive conduct by creditors. Contact a lawyer for more information. Collection Agencies must do the following: 

• Register with the state.
• Contact your lawyer, not you, if you told the agency you have a lawyer.
• Identify themselves and their purpose for calling within the first 30 seconds of the call.
• Cease contact if you send a letter that demands they stop contacting you or that says you will not pay the bill. (Send by certified mail and keep a copy.)
• Within five days after they first contact you, send you written notice that says how much money you owe, to whom it is owed, and what rights you have if you don’t think you owe on the bill.
• Cease collection attempts until they give you a written verification of your debt if you dispute the debt in writing within 30 days of receiving the first notice.

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Posted in Bankruptcy Information  |  By: Thomas McAvity