Credit Counseling Requirements

To qualify for bankruptcy, you must show that you received credit counseling from an approved provider within the 180 day period prior to the filing of your petition. Fortunately, this requirement can be met not only in person but by phone and even online. Once you complete the counseling, the agency will email or fax you a certificate showing that you completed the requirement. If you are represented by an attorney, you will want to make sure that the attorney receives a copy of the certificate for filing.

The purpose of credit counseling is to give you an idea of whether you really need to file. Though the agency may make a proposal to you regarding a repayment plan, you are free to discard the agency’s suggestion.

Posted in Bankruptcy Information  |  By: Thomas McAvity

The Chapter 7 Trustee

As a Chapter 7 filer you will only on the rarest of occasions come before an actual bankrutpcy judge. The bankruptcy court exercises its control over your case through a person called a trustee who is appointed by a branch of the Department of Justice called the Office of the United States Trustee.

The chapter 7 trustee’s primary duties are as follows
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Posted in Bankruptcy Information  |  By: Thomas McAvity

Protection for the Non-Filing Spouse or Co-Debtor

When an individual files for bankruptcy they may have obtained a loan with a friend or family member. By doing this, they are on the loan together. In Bankruptcy, if the debtor is on a loan with another person who has not chosen to file bankruptcy; the non-filing person obtains the same benefits of the protection of the bankruptcy case as the debtor that did file from that particular creditor. After someone files for bankruptcy the protection from creditors is automatically put into place. This protection prevents any creditors from collecting or taking any action to secure their interest on a loan against the bankruptcy filer. At the same time, this protection is extended to a non-bankruptcy filer as well. This is a very generous benefit that a co-signor has even when they have not filed for bankruptcy. However, this benefit is not as far reaching as it may seem. When a person files for bankruptcy they are either trying to reorganize their debts by making a monthly payment under Chapter 13, or they are seeking a completed discharge of their debts subject to the liquidation of their assets under Chapter 7. In either case, if the individual that filed for bankruptcy cosigned a loan with another party that has not filed for bankruptcy, both will be protected from any collection efforts. However, if the individual that filed for bankruptcy decides to return the item back to the creditor or defaults on the loan while in bankruptcy that the non-filer cosigned a loan for, then the non-filer is no longer protected and the creditor can start making collection attempts against the non-filer. Unfortunately, the non-filer will be on the hook unless he or she files a bankruptcy themselves, whereas the filing party receives the benefit of a complete discharge of the debt if they defaulted on the loan.   

Posted in Bankruptcy Information  |  By: Thomas McAvity

Can I Lose My Discharge after My Case is Done?

The court may revoke a discharge under certain circumstances. For example, a trustee, creditor, or the U.S. trustee may request that the court revoke the debtor’s discharge in a chapter 7 case based on allegations that the debtor: obtained the discharge fraudulently; failed to disclose the fact that he or she acquired or became entitled to acquire property that would constitute property of the bankruptcy estate; committed one of several acts of impropriety described in section 727(a)(6) of the Bankruptcy Code; or failed to explain any misstatements discovered in an audit of the case or fails to provide documents or information requested in an audit of the case.

Typically, a request to revoke the debtor’s discharge must be filed within one year of the discharge or, in some cases, before the date that the case is closed. The court will decide whether such allegations are true and, if so, whether to revoke the discharge.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

When Can I File Again?

During these troubled economic times in both Oregon and Washington, we are seeing more and more people being forced into bankruptcy for the second or third time of their lives. Unfortunately, the new bankruptcy laws place some fairly severe limitations on a debtor’s ability to refile.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

The Bankruptcy Judge

The court official with the power to make final decisions in either an Oregon or Washington bankruptcy case is the United States bankruptcy judge, a judicial officer of the United States district court. The bankruptcy judge may decide any matter connected with a bankruptcy case, such as eligibility to file or whether a debtor should receive a discharge of debts. Much of the bankruptcy process is administrative, however, and is conducted away from the courthouse. In cases under chapters 7 and 13, this administrative process is carried out by a trustee who is appointed to oversee the case.

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Posted in Bankruptcy Information  |  By: Thomas McAvity