Personal Bankruptcy

Since he became a sole practitioner, Oregon clients have relied on Michael for personal bankruptcy advice and representation. Michael A. Neal, P.C., is a debt relief agency helping people file for bankruptcy relief under the Bankruptcy Code.

There are many different situations that bring a client to consider filing for bankruptcy. Filing for bankruptcy is sometimes done in the aftermath of a divorce. The personal expenses associated with litigating a divorce can have a severe impact on your financial health. No matter what your reason for considering bankruptcy, he can help you weigh all your options so you can re-establish your financial stability.

For many of our clients, Chapter 7 bankruptcy is the most viable option. Chapter 7, also called liquidation, can give an individual debtor a fresh start by discharging his or her unsecured debts and settling his or her secured debts. You will most likely be required to sell your non-exempt assets and use the proceeds to pay off creditors in priority order. Creditors are prioritized according to a number of factors, including whether the debt is secured, undersecured, or unsecured. A court may discharge your obligation to pay a creditor if the debt is not secured by collateral, such as credit card payments or other debt originally secured only by your signature.

While liquidation may seem like a drastic step, exemptions can allow you to retain certain assets and property. In some cases, your car (or a certain amount of equity in your car), your home, and even some household furnishings and personal effects may be exempt from liquidation. In addition, several types of debt are not dischargeable in bankruptcy, such as certain tax liens, government guaranteed student loans, and spousal and child support payments.

For some clients though, Chapter 13 bankruptcy would be a better option. This allows debtors to retain certain personal property, such as homes or vehicles, and allows them to pay their creditors some or all of their debts over a 3 to 5 year period.

Bankruptcy can be a powerful tool to help clients manage their debt, but it is not always the best method to employ for every client. Michael Neal helps clients work out their insolvency issues ahead of time through careful and strategic insolvency consulting, providing clients with comprehensive advice so that they can make an informed decision based on all the available options. In addition, once you retain his services, you can have creditor calls forwarded to his office, so that he can handle all ongoing correspondence with those debtors until your bankruptcy filing is complete. He can also help clients avoid wage garnishment, automobile repossession, and other negative consequences associated with debt collection. For answers to other questions about the bankruptcy process, visit the frequently asked questions page of this web site.

If you cannot make your debt payments, and are now considering filing for bankruptcy, you need the advice of an attorney with extensive experience in this area. Contact the office of Michael A. Neal, P.C. today for a consultation. There is a small fee for bankruptcy consultations.