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Welcome to our mini-website for Portland, Oregon bankruptcy. The attorneys of Baxter & Baxter, LLP, are dedicated advocates for consumers. Baxter & Baxter, LLP, is a Pacific Northwest consumer protection law firm with offices in Oregon and Washington. To visit our firm’s main website, visit www.baxterlaw.com.

The Oregon consumer protection lawyers of the Consumer Litigation Group represent individuals in cases with false credit reports, identity theft cases, unlawful debt collection cases, and consumer fraud cases. The Portland Oregon bankruptcy attorneys, Oregon City bankruptcy attorneys, Hillsboro, Oregon bankruptcy attorneys, and Vancouver Washington bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcy. Our mission of committed and zealous consumer advocacy is unrivaled, and our track record of excellence and professionalism is recognized nationwide.

For more information about bankruptcy in Oregon and Washington, click the links below:

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

Will a Double Dip Recession Result in More Bankruptcies?

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The most recent employment figures from the federal Bureau of Labor Statistics (BLS) indicate that the recession is continuing to have a direct impact upon employment. “Total nonfarm payroll employment declined by 131,000 in July, and the unemployment rate was unchanged at 9.5 percent, the U.S. Bureau of Labor Statistics reported today. Federal government employment fell, as 143,000 temporary workers hired for the decennial census completed their work.” Private-sector payroll employment increased by 71,000. Thus, the number of unemployed nationally has increased. The Bureau of Labor statistics reported that the June 2010 unemployment rate for Oregon held steady at 10.5 percent. The Bureau of Labor statistics reported that the June 2010 unemployment rate for Oregon held steady at 8.9 percent.

This is coupled with a still teetering housing market. Realtytrac reports that “a total of 97,123 U.S. properties received default notices in July, a 1 percent increase from the previous month but a 28 percent decrease from July 2009.” Realtytrac also noted that “Default notices in July were down 32 percent from their peak of 142,064 in April 2009.” Additionally, Realtytrac reported “Foreclosure auctions were scheduled for the first time on a total of 135,248 U.S. properties in July, an increase of 2 percent from the previous month but a decrease of 2 percent from July 2009. Scheduled auctions in July were down 14 percent from their peak of 158,105 in March 2010. Lenders foreclosed on 92,858 U.S. properties in July, a 9 percent increase from the previous month and a 6 percent increase from July 2009.”

This dire economic data has caused some to speculate that the economy is facing a “double dip” recession, that is, a second drop in economic growth, and the subsequent weakening in job growth and increase in unemployment. It seems likely that this second economic dip will force more families that are already hanging on by a thread so to speak into financial calamity. Many of these people will consider bankruptcy as an option. It should be noted that unemployment can significantly affect the type of bankruptcy that a consumer can file, and the overall outcome of that bankruptcy proceeding.

Chapter 7 liquidation is the most common type of bankruptcy. Since significant changes to the bankruptcy law went into effect, it has been more difficult to qualify for Chapter 7 bankruptcy. This is due to a provision of the bankruptcy code called “means testing.” This essentially looks at a household’s income and liabilities and determines whether the debtor falls below certain paramaters in order to qualify for Chapter 7 liquidation. On the other hand, many people seek Chapter 13 wage earner repayment plans. In order to qualify for this type of plan, the debtor must be employed, and demonstrate to the Court and Trustee that he or she can make the monthly payments under the plan. In between Chapter 13 repayment and Chapter 7 liquidation is a potential no-man’s land, in which the debtor previously earned too much income to qualify for a Chapter 7, but no longer qualifies for a Chapter 13 repayment plan due to unemployment. A good bankruptcy attorney can assist debtors in pre-petition planning to ensure that the proper type of case is filed. This may involve reviewing income, assets and liabilities also referred to as “means testing” or reconsidering the timing of filing a petition.

What to Do If You Are Sued by a Credit Card Company

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Being sued by a credit card company, a debt collection agency, or other creditor can be a stressful and frightening experience. The most important thing for a person who has been sued is not to ignore the lawsuit. A defendant in a lawsuit must follow the proper procedures within the proper deadlines, or they risk a default judgment being entered against them. This article discusses how a lawsuit works, typical procedures for responding to a lawsuit, and the consequences of the lawsuit.

The Process of Being Sued

If you fall behind on your credit card payments, your lender may sue you. The credit card company may accept payments or a lump sum settlement, but under most circumstances is not required to accept anything less than the agreed upon terms. In many cases, this can mean the entire balance on your credit card.

To initiate the lawsuit, the credit card company or debt collector can file a “Complaint” in small claims court, or other trial court. If the case is filed in small claims court, neither you nor the company will have a lawyer in court. However, the company may have a lawyer assisting them outside of court. If the case is not in small claims court, the company will likely be represented by a lawyer.

After the complaint is filed, you will be served with a “Summons” to appear in court. You can be served in person at home or at work. A family member or co-worker may receive “substituted service” on your behalf. You may also be served by mail or by publication.

Responding to the Lawsuit

As noted above, if you do not respond to the lawsuit in the proper form within the allotted deadline, a judgment may be entered against you. You should read the summons and complaint closely. If you choose to oppose the lawsuit, you must file an “appearance” within the time allowed in the summons. It must comply with the Court’s rules and say the correct things, or a judgment may be entered against you.

If you oppose the lawsuit, you must have a legal reason for doing so. It is typically insufficient to appear in Court to explain why you defaulted on your credit card payments, or to request that the Judge require the company to accept payments. Examples of legal defenses are that the company has sued the wrong person, or that the account was opened by someone other than you without your knowledge.

In some cases, the lawsuit has been filed outside the legal time limit to file such cases. This is known as the “statute of limitations.” Different statutes of limitations may apply depending on what state you live in, and what state the credit card company is located in. The applicable statute of limitations may vary depending on the specific facts of your case, and you should contact a lawyer that defends people from credit card lawsuits to determine of this defense applies.

When a Judgment is Entered

If you lose your case, or if a default judgment is entered against you, the result is the same. The company will get a judgment against you. That entitles them to take certain steps to enforce the judgment, including garnishing your wages or bank accounts, and in some cases, seizing your assets. The full extent of a judgment creditor’s rights may vary depending on what state you live in.

If a creditor garnishes your wages or bank accounts, you may have the right to object. Such objections are referred to as “exceptions.” The amount of the applicable exceptions may vary depending on what state you live in. You must file the proper forms with the court within the proper time allowed.

Discharging Debts through Bankruptcy

If you are overwhelmed by inescapable debt, including credit cards, other loans, and judgments, it is likely you can avoid paying them by filing for bankruptcy. Not all debts are dischargeable, so you should talk to a bankruptcy attorney to find out if you qualify for bankruptcy, and if you can discharge the debts and judgments against you.

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