Life After Bankruptcy
July 8, 2022
Filing for bankruptcy in Oregon is among the promising options for individuals, families, and businesses going through financial adversity to achieve debt relief. However, while bankruptcy gets you the needed financial fresh start, there are several changes that may impact your credit report, finances, and future. An experienced Oregon bankruptcy attorney can enlighten you about the long-term implications of bankruptcy and help you make intelligent decisions for a brighter future.
At Oregon Fresh Start, I'm dedicated to offering knowledgeable legal guidance and reliable advocacy to clients in bankruptcy-related matters. I'm available to discuss your personal financial situation and enlighten you about what life, post-bankruptcy, would be like. My firm is proud to serve clients across Bend & Hermiston, Eugene, as well as Portland, Oregon.
Creditor harassment occurs when a creditor or debt collector uses deceptive, threatening, and intimidating tactics on debtors in order to recover debts. Under Oregon laws, creditors are only permitted to interact sensibly with debtors through demand letters, calls, emails, and texts, but at reasonable intervals.
What’s more, according to the Fair Debt Collection Practices Act (FDCPA), it is illegal for a debt collector or creditor to harass, threaten, oppress, or abuse the debtor or anyone they contact in an attempt to recover the money owed to them.
Under U.S. bankruptcy law, once a debtor files for any bankruptcy option, all kinds of debt collection efforts from creditors must stop immediately. Filing for bankruptcy activates an "automatic stay." This is a federal court injunction that prevents creditors from contacting consumers or debtors who have filed their bankruptcy petitions.
If a creditor violates the FDCPA or automatic stay, you need to notify an experienced attorney right away. Your lawyer can take appropriate legal action against the non-compliant creditor. Also, you may be eligible to seek monetary damages for their unlawful actions.
Furthermore, filing for bankruptcy reduces your credit score to anywhere between 160 and 220 points - thus, turning a good credit rating into a fair or poor one. However, how long it will remain on your credit report will depend on the chapter you file for.
Chapter 13: If you file for Chapter 13, bankruptcy will remain on your credit report for 7 years.
Chapter 7: If you file for Chapter 7, bankruptcy will stay on your credit report for up to 10 years.
Unfortunately, such negative information on your credit report can hurt your chances of securing auto loans, home loans, or credit cards although, you may still be able to perform some limited credit-related activities. Nonetheless, you can still become credit-worthy by fixing your credit score. Speak with an attorney to learn more.
Fixing Your Credit
As mentioned earlier, having a poor, fair, or a bad credit score can limit your eligibility for several opportunities. Fortunately, you can start rebuilding your creditworthiness even while bankruptcy still shows on your credit report. Here are some steps to fix your credit score:
Monitor your credit scores regularly.
Review your credit reports annually, and ensure that your credit reports are accurate.
Apply for a secured credit card
Take out a credit-builder loan
Be on the lookout for credit card offers
Apply for unsecured credit cards that are bankruptcy-friendly
Avoid previous mistakes or common pitfalls
Make sure that you are zeroed out
Manage reaffirmed debts carefully
Become an authorized user
Essentially, you can start to rebuild your creditworthiness immediately once your bankruptcy case finishes or your debts are discharged. A well-informed bankruptcy lawyer can enlighten you about how to fix your credit score, improve your financial condition, and ultimately become credit-worthy post-bankruptcy.
Seek Legal Guidance Today
Filing a bankruptcy petition in Oregon is usually a complicated process. Coupled with that, life after bankruptcy comes with several unforeseen challenges. You may lose some assets, your credit score will decline, and poor credit can prevent you from getting loans or business financing.
Therefore, when considering filing for bankruptcy, consulting with an experienced bankruptcy attorney is imperative for detailed guidance and to get expert insights regarding what to expect.
At Oregon Fresh Start, I have the diligence, expertise, and resources to advise and guide clients through the complexities of the bankruptcy process. Additionally, I will attempt to outline a strategic plan to rebuild your credit score gradually, help avoid potential pitfalls, and help build a stable financial future for you. Using my extensive knowledge, I can guide you through every legal process involved in your bankruptcy petition from start to finish.
Contact my firm – Oregon Fresh Start – today to schedule a free one-on-one consultation with a trusted bankruptcy lawyer. I possess the dedication, advocacy, assistance, and personalized legal counsel you need to navigate crucial decisions before and after filing for bankruptcy. My firm is proud to serve clients across Bend & Hermiston, Eugene, as well as Portland, Oregon.t