Baxter & Baxter, LLP

How will Bankruptcy Affect my Credit?

admin — Wed, 25 Apr 2012 16:54:39 +0000

People often believe that filing for bankruptcy will ruin their credit for the rest of their life. That is not true. There is a lot of misinformation about how bankruptcy will affect a person’s credit rating or credit score. Under Fair Credit Reporting Act, the bankruptcy case will appear on your credit report for ten years. Accounts included in bankruptcy will be listed as “Included in Bankruptcy” for seven years.

However, the impact of these items on your credit report have a temporary impact. The effect of any negative item on your credit report will diminish over time. In the short run, bankruptcy will significantly lower your credit score and prevent you from getting credit on favorable terms. However, about two years after filing for bankruptcy, most consumers are able to seek credit on normal terms. This is because they have discharged most or all of their debt, and are now living on a budget they can afford.

Filing bankruptcy has serious and long lasting consequences, including how it affects your credit, your credit score, and your credit rating. However, the affect on your credit score is temporary and is often the lesser of two evils when compared to defaulting on accounts. This article discusses the various ways in which filing for bankruptcy can affect your credit.

Public Records.

When you file a petition for bankruptcy, it is a public record, that can be accessed by the court, by creditors, and by companies that compile public records information. When you obtain a discharge from the bankruptcy judge, it also becomes a public record. The discharge and any orders or judgments that arise out of the bankruptcy case will appear in court records, and may appear in online or electronic records. The judgment will also appear on your credit reports for ten years.

Accounts Discharged in Bankruptcy.

Accounts that are included in bankruptcy must be updated by the creditors to be reported as zero balance, and zero past due. If the account was in arrears prior to the filing of the bankruptcy, or if it was charge off, that information may or may not continue to appear. Any derogatory information, including “Included in Bankruptcy” will appear on your credit report for seven years. You should check your credit reports regularly to ensure that the accounts are being reported accurately.

Will I Qualify for Credit after Bankruptcy.

Yes. In fact, when you get your discharge from the bankruptcy court, you will probably start receiving new credit applications almost immediately. This is because you will have little or no debt, and because you will not be able to discharge new debt for a significant period of time. However, you should be very cautious about accepting this initial wave of credit offers. These offers will often be on unfavorable terms, including low credit limits, high interest rates, and other charges and fees.

Within about two years, your credit rating will begin to climb back up, and the bankruptcy itself will be less of a factor in your credit score than your credit history for the last two years. If you faithfully pay your bills on time (especially any mortgage payments), you can expect your credit score to reflect that, and you will likely qualify for credit on market terms, as opposed to paying a penalty just because you filed for bankruptcy.

Comparison to Not Filing for Bankruptcy.

While the effect of filing bankruptcy is real and significant, it must be weighed against the outcome of not filing. If you decide not to file for bankruptcy, you must continue paying your creditors. If you fail to pay your obligations on time, one or more of these accounts may be reported to the credit reporting agencies as delinquent, or as a charge off. The accounts may also be assigned to a collection agency, which will result in a second derogatory account or “tradeline” appearing on your credit. If the creditor decides to sue you, that lawsuit may become a judgment, which like the bankruptcy court judgment, may remain on your credit report for ten years.

Conclusion.

Many interested parties may wish you to believe that if you file bankruptcy, you will never qualify for credit again. That is not true. Bankruptcy is a significant life event, and will have a major impact on your credit for a significant amount of time. However, it will not ruin you, and you will be able to obtain credit again on reasonable terms. Additionally, the alternative to bankruptcy may have just as negative and long-lasting effect.

This information is presented by the Bankruptcy Practice Group of Baxter & Baxter, LLP. The Portland, Oregon bankruptcy attorneys and Vancouver WA bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcies. We offer a free initial phone consultation. We can stop collection calls from debt collectors and home foreclosures. We can advise consumers whether to file for bankruptcy, and what form of bankruptcy to file.

Baxter & Baxter, LLP Social Media

admin — Fri, 20 Apr 2012 18:20:50 +0000

Find Baxter & Baxter, LLP on your favorite social media websites by clicking the links below.

Welcome to our Mini-Site!

admin — Wed, 20 Jul 2011 06:51:55 +0000

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.

This site includes an aggregation of news stories about business, finance, and politics that bears upon our consumer protection and bankruptcy practice. We hope you will find the stories interesting and useful.

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

Bret Knewtson

admin — Sun, 17 Jul 2011 23:19:26 +0000

Bret Knewtson
Law Office of Bret Knewtson

Today I am writing about my friend and colleague, Bret Knewtson. Bret is an outstanding attorney and member of the legal community. I will never forget the speech he gave as the outgoing Chair of the Oregon State Bar Consumer Law Section. In that speech, he talked about how lawyers have a great duty to be members of the legal community and serve.

Much of Bret’s website deals with bankruptcy, but he is also known in Oregon as the leading authority on defending against credit card lawsuits. He has led the charge in aggressively defending consumers against time-barred breach of contract lawsuits which are filed outside of the statute of limitations.

From his website “Bret Knewtson is a 2003 graduate of Lewis and Clark Law School. He has specialized in personal and small business bankruptcy protection for three years. Mr. Knewtson is always available to answer his clients’ chapter 7 and chapter 13 bankruptcy questions.
As a member of the Consumer Law Section, Mr. Knewtson has helped to pass legislation increasing Oregon’s exemption amounts for debtors and other consumer protection laws.”

You can contact Bret at:

Law Office of Bret Knewtson
3000 NW Stucki PL STE 230
Hillsboro OR 97124
503.846.1160
knewtsonlaw.com

Best regards,
Justin Baxter
Baxter & Baxter, LLP

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

admin — Sat, 02 Jul 2011 01:32:16 +0000

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.

Baxter & Baxter, LLP
8835 S.W. Canyon Lane, Suite 130
Portland, Oregon 97225
Telephone (503) 297-9031
Facsimile (503) 291-9172

Baxter & Baxter, LLP
5635 NE Elam Young Parkway, Suite 300
Hillsboro, Oregon 97124 USA
Telephone (503) 681-9752
Facsimile (503) 291-9172

Baxter & Baxter, LLP
1101 Broadway Street, Suite 213
Vancouver, Washington 98660
Telephone (360) 574-5239
Facsimile (360) 326-1613

www.baxterlaw.com

Heiling Dwyer & Associates

admin — Wed, 22 Jun 2011 19:22:29 +0000

Jason Skelton
Heiling Dwyer
Portland Oregon

Today I am writing about a friend and colleague of mine, Jason Skelton. Jason is a top notch personal injury attorney with the Portland, Oregon law firm Heiling Dwyer & Associates. Jason and his firm handle Personal Injury Claims, Vehicle Collisions, Premises Injuries, Product Defects, Worker’s Compensation, Insurance Claims, Wills and Probate, Contracts, Real Estate Sales and Disputes, Corporations and Partnerships, and General Litigation.

One of the great things that Jason brings to his practice is his experience on the other side of the bar. From his website: “For the first years of his legal career he defended insurance companies in personal injury cases and insurance policy disputes. During this time he learned how insurance companies evaluate and defend claims, which helps him advise his clients as he represents them against the insurance companies.”

Jason is also a great cyclist and community activist. I first got to know Jason on the 100 mile Reach the Beach charity ride. A hundred miles on a bike is a lot of time to get to know a guy. Jason and his firm are on the short list of referrals for cases that we don’t handle.

You can contact Jason at:

Heiling Dwyer & Associates
1220 SW Morrison, Suite 820
Portland, OR 97205
(503) 274-0404

http://www.heiling.com/

Best regards,
Justin Baxter
Baxter & Baxter, LLP