Tag: Do I Qualify for Bankruptcy

Jessica Nomie Law > The Legal Scoop – Oregon > Do I Qualify for Bankruptcy
What Can Chapter 7 or Chapter 13 Bankruptcy Help With?

What Can Chapter 7 or Chapter 13 Bankruptcy Help With?

Posted on by Jessica Nomie

Filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy can actually pave the way for a brighter future.

If anything in our society has a bad reputation, it’s “Bankruptcy”. The “B” word is not something many people throw around lightly. When they need to file for bankruptcy, they keep it to themselves. They often hesitate to pursue this solution to their financial problems. Often, they heavily resist going down this path to the extent that they struggle for years before they finally pursue this option. But why?

It’s true, bankruptcy is not an ideal financial situation for anyone.  It’s also true that it will be reported on your credit and may cause your credit to take an initial hit.  However, bankruptcy is meant to help people. You may have heard of a financial “fresh start”. This is a term that is often associated with bankruptcy. It may be cliché, but it is very true.

Bankruptcy is meant to be a tool to help you get a clean slate and rebuild your credit for a brighter and healthier financial future. After filing for bankruptcy, your credit score will begin to increase and you will eventually have the financial options that are not available to you right now.  As you rebuild your credit, you may qualify for better interest rates on cars and loans, and even have the opportunity to purchase a home.

Bankruptcy is meant to help, so you don’t have to struggle forever. Bankruptcy is not a bad thing. It doesn’t make you a bad person. Life “happens” to good and responsible people. When life “happens”, you deserve a second chance.

What can bankruptcy help with?

The list below is not exhaustive and it does not address the specific rules regarding each particular debt and how it is treated in bankruptcy. Depending on what kind of debt you are facing, this may impact whether you will need to file for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. You will need to speak to an experienced bankruptcy attorney about the specifics of your case.

A Chapter 7 or Chapter 13 Bankruptcy can help with:

  • Wage and Bank Garnishments
  • Creditor Lawsuits
  • Harassing Phone Calls from Creditors
  • Identity Theft
  • Car Repossession
  • Home Foreclosure
  • Tax Debt
  • Unmanageable Credit Card and Medical Debt
  • Auto Loan, Lease and Other Loan Defaults
  • License Reinstatement
  • Other Government Related Debts
  • Credit Repair and Rebuilding

Contact Jessica Nomie Law today for your free and confidential bankruptcy consultation.

We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.

The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.

Common Bankruptcy Questions & Myths

Common Bankruptcy Questions & Myths

Posted on by Jessica Nomie

Part 1. I stopped paying my bills.  Can my creditor garnish my wages immediately?

Short answer:  No. A creditor must first sue you in court and get a judgment against you before they can issue a garnishment to your bank or your employer.

It’s a common misconception among consumers that I speak to, that as soon as they stop paying a debt, that their paycheck or bank account can automatically be garnished by a creditor.  While a creditor might scare you into believing that you must make a payment or else your next check will be garnished; the truth is that they cannot do this without first getting a judgment against you in Court.

What does this mean? The creditor must first file a lawsuit in court against you, serve you with that lawsuit and then go through the court system to get a judgment against you.  Once they have done all of that, then they need to find out where you bank or where you work.  Assuming they have (1) gotten a judgment in court; and (2)  found out where you bank or work, then they can send a garnishment to your bank or employer.  This process at the absolute quickest speed would take 2-3 months.

The bottom line is that, without a judgment, your creditors cannot issue a garnishment.  It’s as simple as that. 

You might ask, what about when your debt is transferred to a collection agency?  The answer is still no; not until they go through the courts to sue you and get a judgment against you.

Please note that for almost any rule there is always an exception.  It’s important to keep in mind that when you owe money to a government agency, such as the Internal Revenue Service or your state taxing agency, they do not have to sue you first.  They can immediately contact your employer to start garnishing your wages.

If you can’t keep up with your bills, have stopped paying bills, have been served with a lawsuit or even a garnishment, or are not sure what kind of debt that you owe, then you should consult with an attorney about your options.  The sooner that you consult with an attorney, the better positioned you are to protect yourself from the harsh reality of a bank or a wage garnishment.

We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.

The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.