If you need to file for bankruptcy in Oregon, you may be worried about whether you can keep your house. Home ownership is so important to so many people, but many rely on mortgages to make their purchases. Should you get behind on your mortgage payments due to financial issues, catching up can feel insurmountable. You may have heard that bankruptcy filers lose their houses and cars, essentially starting over with nothing. Fortunately, in many cases, we can help you retain important possessions by strategically assessing your financial situation and applying the bankruptcy exemptions. It’s a myth that you have to start over with nothing – the laws were not written for that result.
Sit Down with a Bankruptcy Attorney and Assess Your Financial Situation
If you’re struggling to make mortgage payments or have already missed some payments, you need to sit down with a bankruptcy attorney right away. They can talk you through your entire financial picture, including the mortgage, other debts, and your income. Important information about your finances related to your house will include:
- How much equity you have in your home
- Whether you would be filing bankruptcy jointly with a spouse
- The cost of your monthly mortgage payments
- How far behind you are on payments
- Whether you’ve received a loan default or foreclosure notice
- Your monthly income
- Other debts you owe
Doing an honest review of your financial situation will help your attorney advise you. For example, your attorney may recommend that you file for either Chapter 7 or Chapter 13 bankruptcy. The bankruptcy process works differently for these two chapters, which could affect what happens to your overdue mortgage payments. You’ll still have to make payments on your mortgage as they come due, but overdue payments may be discharged or lumped into a payment plan. Moreover, an exemption may allow you to keep your house during bankruptcy, regardless of any overdue payments.
How the Bankruptcy Exemptions Can Help You
Bankruptcy exemption laws allow debtors to keep much or all of their important personal property while going through the bankruptcy process. It’s simply not true that you’ll have to give up all your material possessions and start from scratch. Instead, the bankruptcy laws grant you the ability to keep possessions and prevent the bankruptcy trustee from selling them to pay creditors, as long as exemptions apply to them. One major exemption available in Oregon is the $150,000 homestead exemption (or $300,000 if filing jointly) for equity you hold in your home. The law also allows numerous other exemptions for personal property, such as a car, clothing, jewelry and other valuables, household items, and items you need for your job. There are two different sets of exemptions under Oregon law and federal law, and you must choose between the sets – you cannot pick and choose. Your attorney can help you determine which exemptions will most benefit you.
If an exemption does not apply to certain property, there may still be ways to continue ownership of the property or liquidate it before bankruptcy to achieve the best, most flexible result possible. The most important step towards determining which exemptions apply to you is making the call to a bankruptcy attorney.
Frequently Asked Questions
Will I retain the equity in my house after bankruptcy?
The answer to this question varies widely depending on the amount of equity you have in your house, whether an exemption applies, how far behind you are on payments, and which type of bankruptcy you file for. We strongly recommend speaking to an experienced Oregon bankruptcy attorney for customized advice.
I received a notice of foreclosure. What can I do to stop the foreclosure sale?
If you’re in this nerve-wracking situation, please give our office a call right away. Filing for bankruptcy can stop the foreclosure sale, but you must act very quickly. Now is the time to get professional advice about your financial situation.
Reach Out to an Oregon Bankruptcy Attorney to Turn Over a New Leaf
If you’re struggling with mortgage debt and feeling pressure from your lender, reach out to our firm for legal advice. We offer free and confidential consultations for Oregon debtors and their families. There’s nothing to lose by talking with an experienced attorney at the Law Offices of Alexzander C.J. Adams, P.C. about your debt-relief options. To get started, call us at 503-278-5400 or toll-free at 888-560-8146, or you can complete our online contact form. We look forward to hearing from you!
