OlsenDaines' Bankruptcy Blog

$2.5 Million fine handed down in Unfair Debt Collection investigation - Steven Rogers

2012-02-07T10:04:00.000-08:00

The Federal Trade Commission (FTC) handed down the second largest civil fine for a debt collector in history on Monday, Jan. 31, 2012. The FTC settled a six year investigation against Asset Acceptance for 2.5 Million. The FTC alleged that Asset Acceptance repeatedly and knowingly broke the federal debt collection and credit reporting laws. Read about it here: http://finance.yahoo.com/news/f-t-c-fines-collector-180202793.html

When people get into financial distress and cannot pay all of their bills debt collection calls inevitably follow. Sometimes the calls turn vulgar. Debt collectors often place multiple calls a day—calling family members and sometimes employers. These action are against the law and OlsenDaines aggressively pursues violators of these laws. To learn more about our representation for Unfair Debt Collection cases click here.

Oregon Attorney General Issues Emergency Rule to Protect Mortgagees - Aaron Rabiroff

2012-01-30T15:47:00.000-08:00

Oregon Attorney General John Kroger recently put an emergency rule into effect making mortgage servicers have to obey Oregon’s Unlawful Trade Practices Act. Through this rule, mortgage servicers are now covered by one of the state’s key laws designed to protect consumers against abuse by unethical companies. If you think you have been the victim of deception or lying by your mortgage service company, make sure you let your attorney know, there may be options under the consumer protection laws.

The Attorney General's rules may be viewed here.

OlsenDaines Strips $15,947,683 of Mortgages in 2011

2012-01-30T12:55:00.000-08:00

In 2011, the total amount of mortgages stripped or eliminated for OlsenDaines clients was $15,947,683. The stripped mortgages that total this figure were eliminated through chapter 13 bankruptcies filed by OlsenDaines. By relieving our clients of the burden of these additional mortgages, many families stayed in their homes due to having to continue payments only on their first mortgages.

In many of these cases, a foreclosure was also stopped and up to five years allowed to catch up on missed first mortgage payments.

If you would like more information how this happens click here.

Foreclosure Mediation Bill - Aaron Rabiroff

2012-01-12T07:22:00.000-08:00

The 2012 Oregon Legislature is expected to take up a bill requiring lenders to participate in mediation with homeowners facing foreclosure. The legislation is being sponsored by Sen. Lee Beyers (D-Springfield), Sen. Brian Boquist (R-Dallas), and Sen. Alan Bates (D-Medford). The legislation is still being developed but is expected to be introduced before the January 23rd filing deadline. The Senate offices have indicated this would not be arbitration, and would not require the lenders to follow set standards. To find out more information about coming legislation, or to make your voice heard about this bill, please contact your local state Senator or Representative. You can find your Senator and Representative at this website: http://www.leg.state.or.us/findlegsltr/.

Young Lawyers Service to the Public Committee Help Out At the Blanchet House - Michael Fuller

2011-12-31T11:52:00.000-08:00

OlsenDaines attorney Michael Fuller volunteered with other Multnomah County Bar Assn. members this morning to serve breakfast at the Blanchet House of Hospitality.

The group of Portland attorneys met at 6:15am downtown and served biscuits and gravy to a packed dining hall.

Michael helped organize the event in his capacity as member of the MBA's Young Lawyers Service to the Public Committee.

To learn more about the Blanchet House or to volunteer, visit http://blanchethouse.org/

Take the Power Back - Utility Bills in Bankruptcy - Michael Fuller

2011-12-21T10:19:00.001-08:00

Staying warm in the winter months is a struggle for many working-class families.

This blog explains how past-due utility bills are treated in bankruptcy and provides names of programs available to those in need of heat this winter.

When you file bankruptcy, your past-due utility bill should be listed as a debt, and will be wiped out (“discharged”).

After filing, your account balance will zero out and you will only owe for services provided to you after your filing date. Section 366 of the Bankruptcy Code prohibits your utility company from discriminating against you or discontinuing your service due to your bankruptcy.

However, the Code allows the utility company to require a reasonable deposit within 20 days after you file bankruptcy. If you cannot afford the deposit, you may request a hearing before your bankruptcy judge to determine a reasonable deposit amount.

Filing your bankruptcy before your service is disconnected may save you from paying a reconnection fee in addition to the deposit.

Your bankruptcy attorney can call your utility company to try to work something out on your behalf, although you will probably be required to give consent first. For example, PGE will give you a password to give your attorney before the attorney can call on your behalf.

There are several state and federal programs that offer financial assistance to help you pay your electric bill, especially in the winter months.

Here are a few you may want to try:

Oregon HEAT
http://www.oregonheat.org/

Oregon Energy Assistance Program
http://www.oregon.gov/OHCS/SOS_Oregon_Energy_Assistance_Program.shtml

Low-Income Home Energy Assistance Program
http://www.acf.hhs.gov/programs/ocs/liheap/

PGE customers should also ask about these programs:

Medical Baseline Allowance (lower rates based on certain medical conditions)
Care (discounts based on household size and income)
FERA (Family Electric Rate Assistance for households of three or more)

In Washington, energy consumers can go to http://www.commerce.wa.gov/site/292/default.aspx or http://www.utc.wa.gov/consumers/energy/Pages/energyAssistance.aspx to find out more about assistance programs.

Utah offers the HEAT program, providing winter utility payment assistance to low-income households, targeting those who are truly vulnerable - the lowest-income households with the highest heating costs: the disabled, elderly, and families with preschool-age children. More information may be found at http://publicutilities.utah.gov/faqsc.html or http://housing.utah.gov/seal/heat.html.

For Idaho Rocky Mountain Power Customers, there is http://www.idahocommunityaction.org/programs/programsenergyassistance/
and for customers of Intermountain Gas, help may be found at
http://www.idahopower.com/ServiceBilling/Programs/projShare.cfm

For more information, speak with an OlsenDaines attorney now at no cost. Call (800) 682-9568.

OlsenDaines Attorneys Honored

2011-12-14T15:47:00.000-08:00

On Wednesday, December 13th, the CARE(Credit Abuse Resistance Education) program honored OlsenDaines partners Lars Olsen and Rex Daines for their community work, as part of an event for legal professionals that volunteered for the CARE program. CARE is a statewide program that teaches young people about financial responsibility. Programs have been held in Oregon high schools, Boy Scout Troops, and youth correctional facilities. During the 2010-11 school year, Eugene CARE educated 7,400 students, from Salem to Grants Pass. Lars and Rex were honored for their multiple years of participation in CARES. Attorney Aaron Rabiroff accepted the awards on behalf of the firm.

October 2011 Second Mortgages Stripped

2011-12-05T14:21:00.000-08:00

As follows is a list of second mortgages stripped or eliminated in October 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

Second mortgage stripped...... 48,096.00
Second mortgage stripped...... 33, 178.00
Second mortgage stripped...... 145,504.00
Second mortgage stripped...... 39,185.00
Second mortgage stripped...... 8,542.00
Second mortgage stripped...... 46,967.00
Second mortgage stripped...... 266,370.00
Second mortgage stripped...... 79,842.00
Second mortgage stripped...... 53,201.00
Second mortgage stripped...... 73,376.00
Second mortgage stripped...... 71,644.00
Second mortgage stripped...... 10,000.00
Second mortgage stripped...... 2,343.00
Second mortgage stripped...... 23,893.00
Second mortgage stripped...... 56,137.00
Second mortgage stripped...... 35,000.00
Second mortgage stripped...... 91,000.00
Second mortgage stripped...... 23,929.00
Second mortgage stripped...... 40,085.00
Second mortgage stripped...... 11,639.00
Second mortgage stripped...... 49,000.00
Total mortgages stripped......1,175,931

Fewer Consumers Seeking Relief From Debt Repayment Plans - Matthew Casper

2011-11-18T11:53:00.000-08:00

Fewer debt burdened consumers are signing up for debt repayment plans and credit counseling, a recent USA Today article reports. Unfortunately, due to a stubborn 9 percent national unemployment rate and other factors, the decrease of those seeking credit counseling help does not equal a decrease in consumer debt. According to the website CardHub.com, consumers accumulated $18.3 billion more in credit card debt in the second quarter of this year than they did in the first quarter. This figure is up 66 percent from the same quarter last year and 368 percent higher than the same time two years ago.

OlsenDaines understands how crushing the burden of debt can be when combined with decreased resources and increased obligations. Every day our firm proudly helps families find a way out from under their burdens. To find out more, please visit our website.

Managing Partner Eric Olsen Speaks to Salem Association of Realtors

2011-11-15T12:29:00.000-08:00

Managing Partner Eric Olsen spoke on November 14, 2011 to the Salem Association of Realtors regarding short sales. He also covered the topics of stripping second mortgages through chapter 13 bankruptcy, voiding nonconsensual liens and other bankruptcy related matters. To find out more about stripping second mortgages from the OlsenDaines website, click here.

Lenders Accelerate Foreclosure Filings - Matthew Casper

2011-11-10T13:45:00.000-08:00

About two years ago banks started getting sued for wrongful foreclosures. You might have read about it or seen it on the news. These lawsuits caused mortgage lenders to stop and stall their foreclosures while they got their paperwork in order. Some of my clients have been in their homes for over a year without making a mortgage payment while lenders were figuring out the mess they created for themselves. But these stories of people staying in their homes for extended periods without making mortgage payments may be coming to a close. According to a recent Bloomberg article, lenders are now ready to start foreclosing again.

If you receive a foreclosure notice or have questions about foreclosure, the attorneys at OlsenDaines can help you determine the best course of action to take with your home and accomplish your goals. We have helpful information about foreclosures and saving your home on our website. Give us a call; it’s always free to talk with us to get your options.

Disputing Information On Your Credit Report - Matthew Casper

2011-11-03T11:52:00.000-07:00

Several years ago I was driving down Interstate 15 in southern Utah. It was late at night and there was nobody around for miles and miles. At least that is what I thought until I saw the police lights in my rearview mirror. I didn’t know that I was driving on a stretch of road frequently monitored by Highway Patrol Officers.

All of us, old or young, rich or poor, are affected by what information our creditors put on our credit reports. At times this information is beneficial; but at other times it can be very damaging. There are laws in place to ensure that the information contained on these credit reports is accurate. However, there is nobody that is checking your report for its accuracy. There is no Highway Patrol Officer for your credit report. It is up to you to monitor what is on your credit report and fix any errors that may be on it.

I recently found a great little article on what to do if there is information on your credit report that you think is incorrect. You can check it out here.

OlsenDaines always answers questions about credit scores, how bankruptcy will affect the same, and how to make sure your credit report is accurate. Our main site has useful information about rebuilding credit after bankruptcy. If you are unable to correct your report by following the advice in the above referenced article, we have attorneys that are trained in helping you get the credit report that you deserve. Be sure to always dispute credit reporting errors, keep good records, and call us if you are unable to obtain satisfactory results.

The Proposed Student Loan Forgiveness Program - Matthew Casper

2011-10-28T11:13:00.000-07:00

This week President Obama unveiled his proposed plan to provide relief for those making student loan payments. His plan would advance the calendar date of a measure recently passed by Congress reducing the maximum required payment of student loans from 15 percent of yearly discretionary household income to 10 percent. The proposed plan also reduces the amount of years required to lapse before a student loan is forgiven from 25 to 20. To read more on the issue, click here.

OlsenDaines knows that student loans can create great hardship. Many people have come to us seeking help and advice regarding the burden of making student loan payments while supporting families and maintaining their household expenses. How bankruptcy affects student loans is a complex issue. Fortunately, OlsenDaines has skilled and experienced bankruptcy attorneys who can offer advice and support on many complicated bankruptcy and debt related issues. We are here to help and always have time for those with overwhelming financial problems. Consultations are free and calls are with questions are welcomed.

Washington Passes Foreclosure Fairness Act - Michael Sperry

2011-10-27T12:00:00.000-07:00

The Washington State legislature has passed the Foreclosure Fairness Act to help Washington homeowners facing a foreclosure. You can get a complete copy of the Act here. The Act, effective July 22, 2011, prevents a mortgage company from proceeding with a trustee’s sale, the most common type of foreclosure sale, until certain requirements have been met. In order to be eligible for the program borrowers must be living in the home at the time the notices required to be given to homeowners under the Act are sent. Investment and rental properties are excluded from the requirements of the new law. Before a mortgage company can issue a notice of default, the document that begins the foreclosure process, the borrower must receive information via telephone and mail of their right to have a meeting with their current mortgage company to discuss options such as modification and deeds in lieu of foreclosure. The notice must also list:

A toll free number to contact the Department of Housing and Urban Development to receive a list of authoried housing counselors who can assist home owners throughout the process. A list of HUD approved counselors for Washington State can also be found here.
Explaining how a homeowner must respond in order to be eligible for a meeting with their lender.

If homeowners do not respond to these notices in 30 days, either directly or through a representative, to request an opportunity to meet the mortgage company to proceed with starting the foreclosure.

Violations of the new law or failure to comply with its requirements provides homeowners an option to prevent a foreclosure sale and also provides for ways homeowners can recover damages in a lawsuit if foreclosure companies fail to comply with the new law

Some borrowers who have filed for bankruptcy are not entitled to receive the notices required under the new law in some circumstances. However, filing for a bankruptcy provides other protections for homeowners under Federal Law and does not prevent homeowners from approaching their mortgage companies for modifications of their loans.

If you feel your mortgage company has failed to meet the requirements of the new law or would like to discuss additional avenues to save your home, please contact our office to setup a free consultation to review what options you have to protect you and your family.

Protecting Your Earned Income Credit In Chapter 7 Bankruptcy - Michael Fuller

2011-10-15T16:47:00.000-07:00

A decision by the Portland Bankruptcy Court today makes protecting the Earned Income Credit portion of a tax refund in chapter 7 bankruptcy much easier.

Most chapter 7 cases are ‘no asset’, meaning the individual keeps all their money and property. However, some working-class taxpayers find the trustees in their cases demanding a portion of their tax refund, even though some of the refund is technically exempt as Earned Income Credit.

Individuals receiving a tax refund shortly before filing bankruptcy should immediately transfer the Earned Income Credit amount of the refund into a separate account containing no other money. They can spend the non-Earned Income Credit portion of the refund, then file their bankruptcy. The Earned Income Credit portion in the separate account can be claimed exempt and is protected from the trustee.

Todays decision by the Honorable Judge Brown will help thousands of working-class Oregonians protect their desperately needed tax refunds at a time when they need it the most.

For more information on this ‘recipient-directed approach’ to protecting Earned Income Credit and other tips on pre-bankruptcy planning, setup a phone appointment with an OlsenDaines attorney near you at no cost.

Bankruptcy and the Military - Michael Sperry

2011-10-05T21:30:00.000-07:00

There are several rumors that float around the internet regarding how a bankruptcy filing affects people’s positions within the armed service. Not just enlisting in the armed forces, but also how a bankruptcy filing affects security clearances and promotions. Though the armed forces have financial counselors available at bases to counsel enlistees about various options to relieve debt pressure without filing for bankruptcy, sometimes the situation cannot be resolved through these alternatives and a bankruptcy is the only option.

A bankruptcy filing does not, in and of itself, prevent enlistment in the military, obtaining or keeping security clearances or advancing through the ranks, though it usually is considered as part of a larger view to determine whether someone should be allowed to enlist, be granted security clearance or promoted. A bankruptcy filing will be considered along with other things such as performance reviews and references when these decisions are being made. There can also be factors in a bankruptcy that would weigh on a review such as a large amount of debt incurred just prior to filing, large debts caused by gambling losses, etc. If you are concerned that filing a bankruptcy may affect your ability to enlist, gain security clearance or advance through the ranks, you should contact an attorney for advice as to whether or not there are these types of concerns.

All of the branches of the armed services have requirements that current and prospective enlistees are financially sound. The reason for this requirement is the concern that if there are financial pressures people are more likely to be susceptible to outside influences or the distraction of debt problems at home preventing service men and women from focusing on their duties. Bankruptcy is a proceeding under federal law that allows people who have come under financial stress to alleviate their debts through a fair and order process that seeks to treat all parties involved fairly either through a Chapter 7 or a Chapter 13. These proceedings are a legal alternative to resolve debt problems, and are often seen as a responsible way of resolving potential problems that may arise due to large debt loads.

OlsenDaines has represented many members of the armed forces and civilian contractors that work for the military most of which are required to have security clearances. Our office in Tacoma is located only a few miles from the Joint Base Lewis-McChord and our Port Orchard office is short drive from Bremerton so our attorneys deal with these issues regularly. Often times a simple letter to a CO or a review board regarding the circumstances of the filing, a description of the process and an overview of timelines is all that is required to resolve concerns about someone filing for bankruptcy. If you have questions or concerns about your status in the military or security clearance being affected call one of our office to setup a free consultation with one of our attorneys to review the specifics of your situation to discuss the situation.

OlsenDaines Partners Eric Olsen and Rex Daines complete Deschutes Dash Olympic Triathalon

2011-10-03T02:41:00.000-07:00

Displaying some of the fierce resolve and dogged determination they use every day in representing their clients, OlsenDaines partners Eric Olsen and Rex Daines completed the Deschutes Dash Olympic Triathalon in July.

Property Taxes and Chapter 13 - Matthew Casper

2011-09-15T17:08:00.000-07:00

With some mortgages, the homeowners have elected to pay their property taxes and insurance directly, rather than through an escrow account along with their monthly mortgage payment. There are pros and cons in doing that, which will not be discussed in this article. However, the election to pay your property taxes directly can lead to a potential trap when filing Ch.13 bankruptcy with the intent of keeping the home.

This trap pops up when the homeowner is behind on his/her property taxes when the bankruptcy is filed. Often times the mortgage company (insert your bank here) will pay the property taxes and include that amount in the claim they file with the bankruptcy court. This in some ways is a blessing because the mortgage company doesn’t get to charge the homeowner interest on those property taxes that were paid, while the county gets to charge 16% interest until unpaid property taxes are paid by the Ch.13 Trustee. However, now that the mortgage company has stepped in and paid the late property taxes, the fine print in the mortgage you signed allows the mortgage company to force an escrow account on you and make you pay your property taxes along with your mortgage payment each month.

Fine, right? You have to pay the property taxes anyway, right? Yes, but there’s a catch. Let’s say you file your bankruptcy in September of year one. Well, your year one property taxes are due in two months, and your property taxes for year two are due in 14 months. Don’t worry, the bank is going to pay those for you, but they are going to get the money from...you guessed it, you. So for the next 14 months, you will be paying DOUBLE ESCROW on top of your mortgage payment. This is so the bank will have the necessary funds to get paid back on the year one property taxes, and be able to send the county the property taxes for year two.

This double escrow for the next one or two years is often much more than the homeowner in bankruptcy anticipated and may make the home and the bankruptcy plan to keep the home simply not affordable.

August 2011 Second Mortgages Stripped

2011-09-12T09:10:00.000-07:00

As follows is a list of second mortgages stripped or eliminated in August 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

second mortgage stripped….60,708.00
second mortgage stripped….21,496.00
second mortgage stripped….33,300.00
second mortgage stripped….55,196.00
second mortgage stripped….36,108.00
second mortgage stripped….16,771.00
second mortgage stripped….64,305.00
second mortgage stripped….120,935.00
second mortgage stripped….15,510.00
second mortgage stripped….41,092.00
second mortgage stripped….60,218.00
second mortgage stripped….27,886.00
second mortgage stripped….61,522.00
second mortgage stripped….26,926.00
second mortgage stripped….49,436.00
second mortgage stripped….29,014.00
second mortgage stripped….44,836.00
second mortgage stripped….55,784.00
second mortgage stripped….58,400.00
second mortgage stripped….78,925.00
second mortgage stripped….68,926.00
Total liens stripped:..1,027,294.00

Attorney Michael Fuller Organizes Legal Services for Homeless Portlanders

2011-08-29T12:52:00.001-07:00

OlsenDaines attorney Michael Fuller organized the Legal Services booth at a downtown Resource Fair for homeless and low income Portlanders on Sunday.

The Resource Fair celebrated the 20th anniversary of Potluck in the Park, a weekly event serving free meals to those in need every Sunday, rain or shine. The Fair took place in the Portland State University park blocks and was attended by hundreds of homeless and low income Portlanders.

Total Mortgages Stripped - July 2011

2011-08-09T08:06:00.001-07:00

As follows is a list of second mortgages stripped or eliminated in July 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

second mortgage stripped………39,350.00
second mortgage stripped………42,363.00
second mortgage stripped………44,000.00
second mortgage stripped………120,000.00
second mortgage stripped………118,899.00
second mortgage stripped………30,902.00
second mortgage stripped………81,000.00
second mortgage stripped………60,000.00
second mortgage stripped………75,152.00
second mortgage stripped………94,973.00
second mortgage stripped………100,000.00
second mortgage stripped………33,216.00
second mortgage stripped………31,450.00
second mortgage stripped………55,892.00
second mortgage stripped………15,780.00
second mortgage stripped………64,000.00
second mortgage stripped………38,490.00
second mortgage stripped………17,413.00
second mortgage stripped………66,700.00
second mortgage stripped………88,000.00
total......................1,080,244.00

Oregon's senior tax deferral program is now a trap for the unwary

2011-07-26T11:25:00.000-07:00

Changes have been made to Oregon's tax abatement program regarding reverse mortgages. Read the article here.

Chapter 7 – Is it a Good Idea to Reaffirm Your Mortgage???

2011-07-25T09:48:00.000-07:00

Chapter 7 serves to discharge unsecured debt such as credit cards, medical bills, and personal loans. However, secured debt (mortgages, car loans, etc.) operate a bit differently. Secured creditors have a lien on your property and that lien stays on the property after the bankruptcy is over even though the creditor cannot come after you personally for the debt. In chapter 7, you have several options as to how to treat the secured debt and what to do with the property (i.e. the collateral) that secures it. In terms of automobiles and car loans, you can read more about your options here.

As for real estate and mortgages on your home, there are three primary options. The first is to simply surrender the property. This is where you stop making the monthly payments and allow the creditor to eventually foreclose on the home. This option might make sense for you if you have no equity in the property, cannot afford to make the monthly payments, or simply do not want to keep the home.

If you want to keep your home, the question is whether or not to reaffirm the debt. Generally speaking, a Reaffirmation Agreement is a contract between you and the creditor in which you promise to repay a pre-bankruptcy debt that would otherwise be eliminated through the bankruptcy. The secured creditor’s lien will stay on the property regardless of whether or not you sign a reaffirmation (which means that they can still foreclose on the property if you don’t make the payments). However, when you reaffirm a debt, you are obligating yourself, personally, to pay the debt. If you are unable to make the payments in the future, the creditor can foreclose and then come after you for the balance of the debt (this is called a “deficiency”). Although this could only happen under extremely rare circumstances if you only have a first mortgage, signing a reaffirmation on a second mortgage could be disastrous if you default on the payments down the road. If the second mortgage is not paid in full after the home is foreclosed on, the second mortgage holder has a deficiency and can get a judgment against you and potentially garnish your wages and bank accounts.

One argument in favor of reaffirmation is that it can help rebuild your credit after the chapter 7 is completed – payments that you make on time would reflect positively on your credit report. However, Oregon bankruptcy judges will not approve reaffirmations on mortgages unless the lender offers to improve the terms of the loan (lowering the principal balance, interest rate, or monthly payment amount), which is very unlikely. Further, there are many other things you can do to rebuild your credit after bankruptcy. Check out the Rebuilding Your Credit section of our website for more information.

The bottom line is that, unless your mortgage holder improves the terms of your loan, the bankruptcy court will not approve a reaffirmation. Moreover, the risk of potential future liability on a second mortgage far outweighs any benefits to reaffirming the debt. The better approach to keeping your home and avoiding future debt is to simply continue to make your ongoing mortgage payments and the bank will not foreclose as long as you stay current on the payments. In the future, if you get behind on the payments and it makes sense to keep the home, you can file a chapter 13 bankruptcy to save the home, stop foreclosure, catch up on the missed payments, and potentially eliminate a second mortgage lien.

American Public Media Reports on Stripping Second Mortgages

2011-07-21T14:50:00.000-07:00

On Friday, July 15, National Public Radio's syndicated program American Public Media reported that some underwater home owners stripping their second mortgages. Listen to the full story here.

Total Second Mortgages Stripped - June 2011

2011-07-07T15:36:00.000-07:00

As follows is a list of second mortgages stripped or eliminated in June 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

second mortgage stripped 79,526.00
second mortgage stripped 16,805.00
second mortgage stripped 142,417.00
second mortgage stripped 18,834.00
second mortgage stripped 68,275.00
second mortgage stripped 23,840.00
second mortgage stripped 22,237.00
second mortgage stripped 26,674.00
second mortgage stripped 12,413.00
second mortgage stripped 4,502.00
second mortgage stripped 41,213.00
second mortgage stripped 117,000.00
second mortgage stripped 50,000.00
second mortgage stripped 45,570.00
second mortgage stripped 20,000.00
second mortgage stripped 43,100.00
second mortgage stripped 29,200.00
second mortgage stripped 41,788.00
second mortgage stripped 70,489.00
second mortgage stripped 44,462.00
second mortgage stripped 2,361.00
second mortgage stripped 29,053.00
second mortgage stripped 42,540.00
second mortgage stripped 67,035.00
second mortgage stripped 23,548.00
second mortgage stripped 93,172.00
second mortgage stripped 85,610.00
second mortgage stripped 34,550.00
second mortgage stripped 51,441.00
second mortgage stripped 103,659.00
second mortgage stripped 50,160.00
second mortgage stripped 79,437.00
second mortgage stripped 59,608.00
second mortgage stripped 76,769.00
second mortgage stripped 83,152.00
second mortgage stripped 53,854.00
second mortgage stripped 8,109.00
second mortgage stripped 33,633.00
second mortgage stripped 56,195.00

Total Second Morgages Stripped. $1,952,231.00

Hard Times

2011-06-20T09:09:00.000-07:00

It's no secret that the Pacific Northwest has been hit especially hard by our country's economic trials. Bankruptcy attorneys have an especially accurate viewpoint of the plight of struggling families. Every day I visit with hardworking men and women whose greatest wish is just to be able to support their families.

These recent hard times are not the first lean years our nation has seen. Some of the stories I hear remind me of my wonderful grandfather who passed away about twenty years ago. A written copy of his life story is one of my choicest possessions.

My grandfather Ernest Tigner was born in a sod hut in Kansas in 1900. He struggled financially. He was a kind and hardworking man but his life as a father was one struggle after another to raise his family of four sons and three daughters during the Great Depression. He was very proud when he could earn extra money by taking saws home and sharpening them. He wrote the following about trying to find work cutting poles for dock pilings for the Oregon coast:

I worked at two or three of these places, and the last one that I hit that day was in a little town by the name of Summit. I drove up there late in the afternoon because somebody had told me that a man up there was really paying good money. I waited for this fellow at the country store. I sat there in the light of an old gas lantern hanging from the ceiling. The storekeeper told me that the fellow would be coming in around 5:00. I waited. I stuck it out until 7:00, and I sat there and reminisced back about my life. I was really low. That was the most discouraging day of my life. The store closed up and I went home to my family. The kids were all home from school, and Mae had dinner on the table. No matter how low I got, Mae was just the same, and always providing for our family. We were a family, we loved each other and they were happy.

In 1939, his sixteen year old son Donald contracted typhoid fever in Albany Oregon. His journal relates the following:

We tried to get him in the hospital, but the superintendent of the Albany Hospital would not let him in. So the doctor came by twice a day. We had a chart set up, and we took his temperature regularly. But to no avail. Donald passed away that fall of 1939, and I know that even though I had seen some rough times, this was the roughest. I realized that, as I looked down in the coffin that day and saw Donald lying there, I had been a millionaire all my life and did not know it until then. I had a nice family, health and that was my wealth. I then realized then how unimportant the material things of life are. If you have your health and a nice family that loves you, you have the whole world.

Hugging The Cliff - Eric Olsen

2011-06-09T09:20:00.000-07:00

When I was twelve years old my family moved to Arizona where we lived for two years. My father, brother and I would go fishing at Roosevelt Lake. We had to drive along a precarious gravel road with the Salt River on the left and the Superstition Mountains on the right. In some places there were sheer cliffs at least a 1000 feet down with no guard rails.

It was on these trips my dad would tell the story of some wagon drivers being interviewed for a job. The drivers were to show how good they were by driving a team of horses along a road such as the one we were on. The first driver got dangerously close to the cliff as he rounded the corner. The second driver said "I can do better than that" and drove with half the wheel hanging over the cliff. The reins were then handed to the third driver who drove the wagon as far away from the edge as possible.

My dad then asked "Who do think got the job?"

Just like the wagon driver who kept his cargo safe, our bankruptcy attorneys believe it is always best to keep our clients and their financial lives out of harm's way.

There are different ways to file bankruptcy. In fact it can get quite complicated. Chapter 7 or 13? Keep the house or not? When do we file? What about my car? What about my tax return? Or taxes I owe? These questions expose potential bankruptcy filers up to serious problems. Most of the time these problems cost people money. The cliff's edge that might not be obvious to one bankruptcy practitioner might be apparent to a more experienced attorney as "getting too close to the edge."

We believe in driving our client's wagons safely and with focus. We like to avoid problems. If there are several ways a case can be handled we will outline the options and use our extensive experience to advise the safest course possible.

Total Second Mortgages Stripped - May 2011

2011-06-01T12:39:00.000-07:00

As follows is a list of second mortgages stripped or eliminated in May 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

second mortgage stripped 59,610.00
second mortgage stripped 129,822.00
second mortgage stripped 38,703.00
second mortgage stripped 55,000.00
second mortgage stripped 51,791.00
second mortgage stripped 69,000.00
second mortgage stripped 4,188.00
second mortgage stripped 34,000.00
second mortgage stripped 24,213.00
second mortgage stripped 52,692.00
second mortgage stripped 14,950.00
second mortgage stripped 50,324.00
second mortgage stripped 48,000.00
second mortgage stripped 13,100.00
second mortgage stripped 28,205.00
second mortgage stripped 37,000.00
second mortgage stripped 133,683.00
second mortgage stripped 34,063.00
second mortgage stripped 19,475.00
second mortgage stripped 305,461.00
second mortgage stripped 91,804.00
second mortgage stripped 38,000.00
second mortgage stripped 15,196.00
second mortgage stripped 4,188.00
second mortgage stripped 88,782.00
second mortgage stripped 28,050.00
second mortgage stripped 23,980.00
second mortgage stripped 86,000.00
second mortgage stripped 9,908.00
second mortgage stripped 44,000.00
second mortgage stripped 39,800.00
Total Second Morgages Stripped. $1,712,188.00

OlsenDaines Portland Attorney Offers a Helping Hand

2011-05-19T11:06:00.000-07:00

Attorney Michael Fuller recently spent an evening with fellow Multnomah Bar Association (MBA) volunteers at Portland’s Clark Center, a Transition Projects shelter.

The group of volunteers, organized by the MBA, prepared and served chicken dinner for the men of the Clark Center, a Portland homeless shelter.

“Judy Edwards and the MBA provide a great service to the Portland community,” says Michael, who is a member of the MBA Young Lawyers ‘Service to the Public’ committee.

Michael Fuller is a consumer rights and bankruptcy law attorney in OlsenDaines' Portland and Hillsboro offices.

How to Buy Your Car Back From the Bank at Discount Through Chapter 7 - Michael Fuller

2011-05-18T08:55:00.001-07:00

About Redemption
Many of my clients considering chapter 7 bankruptcy are understandably concerned about whether they can keep their bank-financed cars through bankruptcy. The answer is almost always 'yes.'

Most clients choose to simply keep their car insured and maintain their payments to the lender. By doing this and entering a reaffirmation agreement with their bank or credit union, they may keep their financed car during and after bankruptcy.

However, there is another less-used option available to clients in chapter 7 who want to own their bank-financed car free and clear after bankruptcy, or reduce their monthly payments. This option, found at Section 722 of the Bankruptcy Code, is called 'redemption,' and applies to cars, trailers, motor homes, ATV's, and most other personal property.

The Bankruptcy Code allows a person in chapter 7 to buy their car back from their bank or credit union for what the vehicle is worth, regardless of what they owe on the car loan. For example, if a client owes $10,000 on a '00 Ford F-150 with a retail value of $2,000, they may redeem the vehicle by paying the lender $2,000 (or less, as discussed below).

More on Retail Value
Just because a 00' Ford F-150 is advertised for retail at $3,999 in the Hillsboro Argus doesn't mean a particular client's 00' Ford F-150 has a retail value of $3,999. I often advise clients to make a list of everything wrong with their vehicle and deduct the cost to repair any major problem or unsafe condition from the retail value found in their local newspaper or Kelly Blue Book.

Car dealerships almost always perform a full in-house inspection prior to accepting a trade-in or selling a car on their lot. Reputable lots make needed repairs and fix unsafe problems before putting a car up for sale.

Are the tires bald? Is the airbag light on? Do the brakes need to be replaced? Does the exhaust blow white smoke when the car starts up? The cost to fix problems like these should be factored in when determining the fair retail value of a car.

Negotiating with Your Bank or Credit Union
After my clients arrive at a fair as-is retail value for their car, we often discuss lowering our redemption offer to the bank or credit union, depending on how much bargaining power we have.

We know that at the end of the day, if we simply give the car back to the bank and wipe out the car loan in bankruptcy, the bank still has to sell the car. And we know they rarely receive retail value at auction.

Bob Coe of Coe Luxury Motors in Portland purchases vehicles direct at auctions across the country for his customers. "Buyers at auction generally expect to pay around Kelly Blue Book trade-in value," says Coe.

For my chapter 7 clients, this means we generally can guess the bank's break-even point, and know that if we offer the bank too much less than trade-in value, they may to object to the offer. However, offers at less than trade-in value are often accepted because banks must account for the auction house fee they must pay if they take the vehicle back.

"Manheim, Brashers, and other auto auctions charge banks and credit unions an auction house fee to sell their cars there. The larger banks are often charged less because they bring a large number of cars to auction each month," says Coe.

I advise my chapter 7 clients to consider reducing their offer to redeem by 5% - 10% off the as-is trade-in value, knowing that smaller banks and credit unions likely must pay even higher fees to the auction house.

If a car is in serious disrepair or is located in a rural area, I advise clients to further lower their offer to account for the bank's cost to transport the car to the auction house.

Financing the Redemption Purchase
After deciding to redeem a car, the next question is, "Where do I get the money?"

First I advise my clients to consider loans from family and friends, if available. See the article on the Olsen Daines' website 'client portal' about putting a friend or family member on vehicle title to secure a loan.

However, most of my clients have no friends or family in a position to loan them money, or do not feel comfortable asking, which is understandable.

The second option is to borrow the money to redeem from a bank.

US Bank's '722 Redemption' Program
Clients with late-model low mileage cars can often reduce their car payments by taking a redemption loan through a bank. The largest bank making these types of loans is US Bank.

So long as you don't owe US Bank money when you file bankruptcy, and your vehicle meets their requirements (see www.722redemption.com or call (888) 721-2800), you may qualify for a redemption loan. Modest attorneys fees and the Court's filing fee for the motion to redeem can also be financed through a redemption loan.

This option has worked out well for many of my clients. They re-finance their vehicle for what it's worth, rebuild their credit after bankruptcy, and they have reliable transportation that allows them and their family to obtain a fresh start.

For more information about redeeming a car in chapter 7, schedule a phone appointment with one of our attorneys.

Principal Paydown Plan for Undersecured Mortgages - OlsenDaines

2011-05-13T13:21:00.000-07:00

Senior Partner Eric Olsen recently attended the the National Consumer Bankruptcy Attorneys annual convention in Washington D.C. Prior to that convention Mr. Olsen met with Oregon Senators and Staff regarding issues important to Oregon Citizens facing foreclosure. Over 100 bankruptcy attorneys met with their representatives in congress and presented a proposal Principal Paydown Plan for Undersecured Mortgages.

The Principal Paydown Plan calls for reststructuring in Chapter 13 bankruptcy of certain underwater mortgages. Under this approach, homewoners will be able to elimnate engative quity, acquire modest equity and then reammortize the mortgage into a market rate loan.

A detailed description of the plan. .

Senior Partner Eric Olsen Testifies In Support of SB 935

2011-05-09T15:26:00.000-07:00

Senior Partner Eric Olsen testified Monday May 2 betore the House Business and Labor Committee on Senate Bill 935. This bill which was passed unanimously by the Oregon Senate would raise the exemption for tools of the trade in bankruptcy from $3000 to $5000. Our thanks to Senator Richard Devlin from Tualatin who sponsored and put forth this bill. An increase in the tools of trade exemption is long overdue in Oregon. Being able to keep ones tools of trade is always important. We are confident that the bill will pass the house in the Oregon Legislature, be signed by the Governor and enacted into law. We commend and thank Senator Devlin for his efforts in this regard.

Problems With Your Student Loans? - Matthew Casper

2011-05-05T08:38:00.000-07:00

The quickest and most effective way to resolve problems with your student loans is to contact the loan servicer directly. If you don’t know who the loan servicer is, call 1-800-4-FED-AID. Many loan servicers have programs in place for people who have problems with making the payments on their student loans. These programs range from payment relief to forgiveness of the debt. Call your loan servicer and see if you qualify for any of these programs. Remember to BE NICE when you speak with the representative for the loan servicer. Their job is to help you, and arguing with them will not encourage them to do their best job in helping you. Also take good notes of everything that you talk about.

If working directly with the loan servicer does not resolve the problems you are having with the student loans, you can contact the Federal Student Aid Ombudsman for assistance. The US Department of Education has set up a system where an Ombudsman acts as the middle-man to help you deal with your student loan servicer.

There is a great deal of information you are going to need prior to making a call to the FSA Ombudsman. Check out http://www.ombudsman.ed.gov/resources/toolschecklists/prep-checklist.html for the list of information you are going to need. Then call 1-877-557-3575 to get in touch with the Ombudsman’s office.

The first thing they are going to ask you is if you tried to resolve the issue yourself. Be sure to visit http://www.ombudsman.ed.gov/resources/toolschecklists/selfresolution-checklist.html to make sure you truly have tried to resolve this issue yourself prior to calling the Ombudsman.

Here are a couple things that people have said about the Ombudsman’s office:

“I had been going between 2 of my lenders for over a year, going round and round with the two of them. One of them promised to remove one of my loans, but I had consolidated with the other lender prior to learning that. Hence neither lender would take responsibility, and I wanted that loan gone like promised. It took over 6 months with the Obmudsman, but they did all the work and I would just call in to check in once a month or so. Much better for me comparatively to trying to get through the insanities of dealing with each lender. I would highly recommend them.”

“I called the FSA Obmudsman a few months ago and while they could not directly do anything about my problem, they got me some phone numbers over at my old school that proved to be pretty valuable. No one wanted to give me any of this info, but the Ombudsman had it.”

OLSEN DAINES ANNOUNCES ITS NEW HILLSBORO OFFICE! - OlsenDaines

2011-05-02T10:46:00.000-07:00

Olsen Daines, Oregon's largest consumer protection law firm, is proud to announce the grand opening of its newest office in Hillsboro. Attorney Michael Fuller will head up the new office, located at:

4660 NE Belknap Ct. Suite 101Q
Hillsboro, OR 97124

The office is located in the ExecuTech Suites off Cornell Rd. near the Intel Hawthorne Campus.

"I was born and raised in Hillsboro and was among the first class to graduate from Century High School over a decade ago," says Michael. "I'm excited to return to my roots and advocate for the rights of Hillsboro consumers, homeowners, and families."

Michael returned to Century as a guest speaker in February 2011 presenting consumer rights and contract law to students in Mr. Smith's 'You and the Law' class.

Olsen Daines is scheduled to present a free informational session at the Hillsboro Community Senior Center on June 20th from 1:30pm - 2:30pm, discussing various legal issues facing local seniors.

For questions about the free information session, or to schedule a free consultation with Olsen Daines in the Hillsboro office, call (503) 274-4252.
Hillsboro Office Hours:

Monday through Friday, 8am-5pm by appointment
Thursdays, 5pm-8pm walk-ins welcome
Saturdays, 12pm-4pm walk-ins welcome

Se habla español!

FRAUD ALERT: SOCIAL ENGINEERERS POSING AS DEBT COLLECTORS - Michael Fuller

2011-04-25T14:35:00.000-07:00

A few weeks ago, while working in OlsenDaines' Tigard office I received a call on my cell phone from an (800) number I did not recognize.

A voice said, “Hello Mr. Fuller, this is Janice from Sallie Mae.”

I replied, “How can I help you?”

She continued, “This call is being recorded. Before I can continue I need to verify your social security number and mother’s maiden name.”

I said, “I’m sorry but I have a policy -- I don’t give my personal information to people I don’t know.”

“Don’t you have an account with Sallie Mae?” she questioned.

“I’m sorry but I have to follow my policy,” I repeated.

She eventually said “okay” and hung up.

* * *

In addition to old-fashioned computer hacking and mailbox theft, con artists now engage in so-called “social engineering.” Social engineering, made popular by hacker Kevin Mitnick, uses pretexting, phone phishing, confidence tricks, and other tactics to manipulate people into revealing secure information, often over the phone.

Social engineering by international hackers and identity thieves posing as debt collectors has become more common as economic conditions worsen. See Wikipedia: Social Engineering

To avoid being scammed by hackers using social engineering tactics, consider adopting the following phone policy for incoming calls:

1. Never give or confirm private information to people you don’t know personally
2. Do not assume the number on your caller-ID is the actual number that is calling you
3. If you’ve retained an attorney, refer anyone claiming to be a debt collector to your attorney. If they are a legitimate debt collector, federal law prohibits them from contacting you again.

The Oregon DOJ keeps an email list/twitter feed of newly reported scams of this nature:

http://www.doj.state.or.us/finfraud/scamalertnetwork.shtml

Second Mortgages Stripped or Eliminated During the Period of April 1, 2011 Through April 15, 2011

2011-04-20T09:12:00.000-07:00

As follows is a list of second mortgages stripped or eliminated during the period of April 1, 2011 through April 15, 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

second mortgage stripped 25,600.00
second mortgage stripped 41,986.00
second mortgage stripped 54,989.00
second mortgage stripped 91,000.00
second mortgage stripped 20,052.00
second mortgage stripped 34,300.00
second mortgage stripped 37,000.00
second mortgage stripped 58,000.00
second mortgage stripped 106,000.00
second mortgage stripped 73,323.00
second mortgage stripped 23,896.00
second mortgage stripped 66,991.00
second mortgage stripped 51,887.00
second mortgage stripped 39,968.00
second mortgage stripped 101,718.00
Total Second Morgages Stripped. 826,710.00

Eliminated Taxes Through Bankruptcy - Eric Olsen

2011-04-11T12:17:00.000-07:00

The other day I spoke with a good person who was very concerned because the IRS was about ready to garnish his wife's wages for some taxes owed from several years ago. The taxes were significant, nearly $40,000. Taxes can be eliminated in bankruptcy. OlsenDaines helps people wipe out millions of dollars in old taxes each year. However there are specific rules involved. The general rule is that the tax must be over three years old and been assessed for two years. However this is only a general rule and there are many exceptions and pitfalls. The only way to find out exactly when a tax can be discharged in bankruptcy is to obtain what is called a tax transcript.

The tax transcript will show us the exact dates we need to examine to find out when exactly a bankruptcy can be filed so the tax debt can be extinguished. This good person said that he knew all the dates.The problem is if we don't get a transcript and just file a case and the dates are wrong- they would still owe the $40,000 in tax debt. For this reason in all cases where there is a question about taxes being able to be discharged we will have the client sign an IRS Power of attorney form to obtain the transcript. We can get the transcript quite fast and then be able to advise a client exactly when his case can be filed to wipe out the taxes. The power of attorney only allows us to get the transcript. Sometimes it will of course make sense to be garnished for a few months so tens of thousands can be wiped out by waiting a little bit of time.

Being able to resolve tax issues is an important aspect of bankruptcy. And obtaining a tax transcript is the first step- an essential step.

Second Mortgages Stripped or Eliminated - March 21, 2011 through March 31, 2011

2011-04-05T08:44:00.000-07:00

As follows is a list of second mortgages stripped or eliminated during the period of March 21, 2011 through March 31, 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

second mortgage stripped.................43,645.00
second mortgage stripped ................30,654.00
second mortgage stripped ................32,800.00
second mortgage stripped ................203,910.00
second mortgage stripped ............... 37,000.00
second mortgage stripped ................48,552.00
second mortgage stripped ................47,607.00
second mortgage stripped ................51,501.00
second mortgage stripped ................102,700.00
second mortgage stripped ................57,326.00
second mortgage stripped ................27,000.00
second mortgage stripped ................56,314.00
second mortgage stripped ................84,516.00
second mortgage stripped ................67,577.00
Total Second Morgages Stripped.891,102.00

Does a Judgment Wiped Out In a Bankruptcy Affect Property Obtained After the Bankruptcy? - Eric Olsen

2011-04-01T09:55:00.000-07:00

The other evening I had a phone appointment with a nice woman who had filed a bankruptcy with another attorney years ago. One of the debts listed on that bankruptcy was a judgment.

Several years after the bankruptcy was discharged the caller’s mother added her name to a piece of property. Now, she is attempting to refinance the property and the title company, mortgage broker and realtor are all saying that the judgment must be removed for things to move forward. I have had to explain or clarify the facts of this issue so many times over the years that I am putting it in our blog so it can be referred to in the future. As follows
is my response:

Hi ____:

This will answer your question. You may share this email with whomever you wish. You filed a bankruptcy in 2004. MBNA was listed as an unsecured creditor. You received a discharge of your debts. That discharge included the judgment held by MBNA. Even had MBNA not been listed as a creditor (however - you do indicate they were) under the law at that time the debt still would have been discharged in a no-asset chapter 7 bankruptcy. So upon discharge the judgment of MBNA meant NOTHING.

After the discharge your name was placed on a piece of real property. Now persons are indicating that the judgment is a problem. Not so. The debt was discharged by the bankruptcy. The judgment is absolutely meaningless. This is the law and can be found at 11 U.S.C. §524(a)(1).

Had you owned the property at the time the bankruptcy was filed then yes steps would be necessary to have removed the judgment. But this is NOT the case. You obtained property after the bankruptcy. This is where the persons examining the issue may have become confused. The judgment debt does not miraculously revive itself as a legitimate debt. If a title officer indicates that this is a problem then you must insist that their superior become involved. Because it is simply a non issue.

Discussing this matter with anyone other than the title company is a waste of time. Showing this email to whomever you are dealing with there should solve the problem. If not you need to simply go up the "chain of command."

The issue is clear as the computer screen in front of my face. I have had to explain this exact same thing for what seem like countless times in the past. It is a common misunderstanding.

The First Meeting of Creditors or § 341(a) Meeting - Eric Olsen

2011-03-28T12:26:00.000-07:00

The First Meeting of Creditors can inspire fear in the heart of bankruptcy petitioners. Regrettably, this term is somewhat misleading.

In nearly every bankruptcy case it is the one and only meeting petitioners attend. Perhaps if people would find comfort if they considered it their first and only meeting with the Trustee and possibly their creditors. In the vast majority of these meetings no creditor shows up and even if they do it is not the central area of focus.

The name “Meeting” can sound scary but the meeting itself is not. Our attorneys are always present with our clients. The questioning takes place in about 5 minutes or less. Before our clients go we instruct them on exactly what they need to bring. Attendees will always need to remember their photo ids and proof of social security numbers. The bottom line is there is nothing to be concerned about. To listen to a typical First Meeting of Creditors click here.

Second Mortgages Stripped During the Period of March 7, 2011 Through March 18, 2011

2011-03-22T08:57:00.000-07:00

As follows is a list of second mortgages stripped or eliminated during the period of March 7, 2011 through March 18, 2011. These mortgages were stripped through chapter 13 bankruptcies filed by OlsenDaines allowing families to keep their home by only having to continue payments on the first mortgage.

In most of these cases a foreclosure was stopped and the family given up to five years to catch up on the missed first mortgage payments.

If you would like more information how this happens click here.

second mortgage stripped 175,000.00
second mortgage stripped 38,771.00
second mortgage stripped 49,095.00
second mortgage stripped 21,150.00
second mortgage stripped 29,213.00
second mortgage stripped 34,000.00
second mortgage stripped 45,021.00
second mortgage stripped 37,761.00
second mortgage stripped 50,000.00
second mortgage stripped 33,721.00
second mortgage stripped 49,270.00
second mortgage stripped 13,053.00
second mortgage stripped 106,293.00
second mortgage stripped 43,407.00
second mortgage stripped 92,952.00

Total: 818,707.00

Cram Down - Eric Olsen

2011-03-21T10:45:00.000-07:00

An important advantage of chapter 13 is the ability in some instances to cram down or only pay what an item is worth through the chapter 13 plan. For example, if the debtor is purchasing a car and they owe $20,000 on the car and it has depreciated to an actual value of $10,000 he or she would only need to pay what the car is worth- $10,000 through the chapter 13 plan. The interest rate can also be modified to a market interest rate. This results in a much lower payment for the car and only having to pay the value.

An experienced attorney will always ask how long you have been purchasing a car. Why? Because in order to cram down the debt owed for the car you must have been purchasing it for more than 2 1/2 years. Sometimes we will wait to file a bankruptcy so the vehicle debt can be reduced to the value of the vehicle - often saving our clients thousands of dollars. If the vehicle debt has been refinanced we will need wait for one year from the refinance date. Items other than a car must have been purchased for at least one year prior to the filing to be eligible for a cram down in Chapter 13.

It is important to note that the ability to cram down or pay what an item is worth does not apply to one's residence. However, this can be done with a mobile home. For example, a person owes $30,000 on a mobile home that he paid too much for. It is only worth $10,000 and he has owned it for more than a year. This debt could likely be crammed down and also likely have a lowered interest rate which would be paid for up to five years through the chatper 13 plan.

These are all things that will be discussed when you meet with us. Cram down is an important benefit of chapter 13. There are many rules that apply and the advantage of experienced legal counsel in this situation cannot be underestimated.

Friends With Questions - Old and New - Eric Olsen

2011-03-14T14:09:00.000-07:00

At OlsenDaines we consult with potential clients at no obligation while they are making difficult decisions. Often we consult with potential clients more than once. We encourage them to talk with us as much as they need. We don't want people making mistakes while preparing to deal with their problems. It usually takes only a few minutes to analyze most situations. We worry about people "self diagnosing" and "treating" their own situations. We too often see wrong conclusions and mistakes made.

We even tell our existing clients they can always call us back and ask questions - even if it doesn't have to do with the area where we helped them. Even years after their cases have closed we will refer our clients on or answer their basic questions. We feel a deep loyalty to our past clients. We want them to be successful and happy. That is one reason we have developed our website and continue to develop it – especially our section on student loans and restoring credit. To all our old friends - please call us if you need help. To our prospective clients, we can help you too. We stand by our motto "you have questions, we have answers, we can help."

Mike Fuller Presents at the American Bar Association Young Lawyers Division

2011-02-15T09:24:00.000-08:00

Mike Fuller of OlsenDaines presented a program at the American Bar Association Young Lawyers Division Midyear Conference in Atlanta Ga on Friday February 11. The Title of the presentation

was "Diversity Pro Bono Chapter 7 Bankruptcy for Seniors and Disabled." A copy of the program presented by Mr Fuller is here .

Timing - Eric Olsen

2011-02-10T13:28:00.001-08:00

Timing is something we all do. We time when to leave for work to get there on time but not too early. We time our approach to an intersection to make the green light ahead. We time the spending of our money to make it last to end of the month. In fact if you think about it timing things just right is a pretty consistent part of our lives.

Time is also a crucial issue when a bankruptcy is filed. Too many times cases are simply filed without regard to timing. Sometimes it is very important to wait, sometimes we want to file asap. Sometimes timing is not that important. But when it is and timing is not considered there can be serious consequences. Let me go over just a few.

1. Filing a case too early and losing a tax refund when the refund could have been received and spent before the bankruptcy was filed.

2. Waiting to file too long - allowing a garnishment to take place or worse yet a foreclosure to take place

3. Filing a case when it is obvious that more debt will be incurred shortly, perhaps a necessary medical procedure, when one could wait and file later and include that debt.

4. Filing a chapter 13 because of too high income when if one waited a month or so more the debtor would qualify for a chapter 7 that would be less expensive and completed much sooner.

5. Filing a chapter 13 without waiting an extra month so one could cram down a car loan paying only what it is worth instead of what is owed

6. Filing a case for a judgment-proof debtor - leaving them owing a bunch of non discharged taxes when by waiting we could file a bankruptcy and wipe out all the taxes

Actually this list could go almost go on forever. Experience and proper analysis in timing the filing of a bankruptcy is one of the most important things we do. Proper timing can save clients thousands and even tens of thousands. Improper timing can cost thousands and tens of thousands. Experience is critical to know what to look for and what to do about it.

Warning Signs - Eric Olsen

2011-01-18T16:08:00.000-08:00

Everyone knows what a warning sign is. Most come in bright colors and bold letters that warn, "Slow Down - Danger Ahead" or flashing lights that caution us of upcoming hazards.

It is unfortunate – but there are also warning signs to watch for when hiring an attorney for bankruptcy representation. Because of these difficult financial times many attorneys have begun to practice bankruptcy law with little to no experience.

Some of these attorneys represent themselves as having vast experience when in fact they are just getting into a brand new field. If there was ever a field of law where experience is critical, bankruptcy would be that field. More than obtaining admission to the federal bankruptcy court is needed for to competently represent a bankruptcy petitioner.

As follows are some "warning signs" that the attorney you may be hiring is not experienced. (If you don't mind being an experiment there is no need to read further.) Here is a partial list:

1. The attorney’s website does not disclose either when the attorney graduated from law school or how long they have been practicing bankruptcy law. This is a good sign that an attorney is brand new. This can be tricky because some attorneys may have been practicing for years but just started practicing bankruptcy law. However an attorney's lack of a good website does not necessarily mean the attorney is not competent- they just may not be into the web. That should not scare you.

2. The attorney advertises only chapter 7. This is worse than playing cards with half a deck. If the attorney only files chapter 7 and not chapter 13 you do not get the benefit of all the options available and often chapter 13 is the very best option even though a chapter 7 could still be filed. The attorney has not taken the time to learn everything that can help people.

3. The attorney does not have an answer for every question you have or have ready access to an answer from an associate or partner. An experienced attorney will have all the answers to your questions I can assure you. There is nothing wrong with a younger attorney if he has access to an experienced bankruptcy attorney however often that "experienced" attorney to answer your questions!

4. The attorney advertises "cheapest" or a offers a ridiculously low fee. There is a reason for this. It is the only way they can get business or they are starting out and trying to attract business. Just remember your case is the test one and you are playing the part of the guinea pig.

I am sure there are other warning signs but these come to mind. I do not want to offend my fellow attorneys but I also owe a duty to the public. There has been an influx of attorneys, some of them in practice for many years that now all of sudden claim to be bankruptcy experts. There are large experienced firms hiring brand new attorneys with little or no experience to open a bankruptcy practice for their firm. We often have clients come into our office that have met with another attorney and received advice that made no sense or perhaps filed a case and now is coming to us with the resulting problems. There are many competent bankruptcy attorneys out there but you need to be careful if you want someone with real experience. Any attorney can file a bankruptcy but filing the right bankruptcy in the right way at the right time that benefits you the most, now that is an entirely other matter.

Watch OlsenDaines Attorney Dwayne Murray on KOBI NBC discussing foreclosure and bankruptcy

2011-01-12T10:05:00.000-08:00

http://localnewscomesfirst.com/index.php?option=com_seyret&Itemid=431&task=videodirectlink&id=7172

Tax Refunds and Bankruptcy - Eric Olsen

2011-01-03T10:41:00.000-08:00

Every fall and early winter potential bankruptcy filers and their attorneys face the same question. Should we file this case before we receive our tax refund – and risk losing it – or wait to file until after the refund is received and spent? Tax refunds can be non-exempt in a bankruptcy and it is possible that a bankruptcy filer may lose all or part of his refund if he files bankruptcy too soon.

There are so many factors that are involved in weighing the benefits of filing bankruptcy now vs. waiting and getting the refund and THEN filing bankruptcy. For example, a person being garnished may ultimately lose more money by delaying filing then she would be filing a bankruptcy, stopping her garnishment, and forfeiting his refund. It all depends on varying factors.

Earned income tax credit received in a refund is exempt in a bankruptcy so this should not be a reason for delaying a bankruptcy filing. If nearly all of a tax refund is earned income tax credit then there is no need to wait to file bankruptcy to protect the refund. If a potential bankruptcy filer is expecting tax refund of 7000 dollars, 5000 dollars of which is earned income tax credit, he will need to spend the entire 7000 dollars to protect the 2000 dollar non-exempt portion. It is also important to note that while earned income is exempt in a bankruptcy filing, the child tax credit is not.

What state you live in also makes a difference. Washington bankruptcy filers have more liberal exemption laws that usually allow them to keep refunds without a problem. Also different trustees in different cities have different policies on how they choose when to administer or not administer tax refunds.

In a chapter 13 where you live may decide whether or not you can keep the refund or have to turn it over to the chapter 13 trustee. The refund may need to be factored into the bankruptcy budget so filers can keep it. We often advise our clients in certain cities to increase their exemptions to lower or eliminate their refunds so they can keep these funds for their families' needs.

I read this weekend this weekend that the IRS will not even start processing refunds for those taking itemized deductions until after the middle of February. The many rules and nuances surrounding the decision of when to file a bankruptcy with an incoming tax refund are largely learned knowledge and not written down anywhere. This is yet another reason why it is critical to have an attorney experienced in this area. Losing money – often thousands of dollars – when you are already in a struggling financial state is a costly mistake that can be avoided with the right direction and counsel.

Foreclosure Nightmares Continue

2010-12-13T13:06:00.000-08:00

From National Public Radio-

State prosecutors from all 50 states are investigating the country's largest banks, to learn whether they have been foreclosing on thousands of Americans improperly.

The banks say they do not seize people's houses without justification. But NPR has uncovered a case that might suggest otherwise. In fact, the homeowner in this case was actually the victim of a scam run by one of the bank's very own employees. But despite that, the bank moved to foreclose anyway.

Read the rest of the story here.

Oregon Homeowner Help

2010-12-08T15:58:00.000-08:00

The following is a press release from Oregon Housing and Community Services:

Oregon Kicks Off First Foreclosure Prevention Program

Salem—Beginning Dec. 10, struggling Oregon homeowners can apply online for the state’s new Mortgage Payment Assistance (MPA) program at www.oregonhomeownerhelp.org. Applications for the program will be open from Dec. 10, 2010 to Jan. 14, 2011.

Program participants will be randomly selected from eligible applicants by a secure software program and notified soon after the application’s closing date. The program is not first-come, first-served. All eligible homeowners who apply within the application period will have an opportunity to receive help with their mortgage payment.

“While we recognize there are not enough resources to serve the great need faced by homeowners in Oregon, we are pleased to have created a solid program that will help smooth the difficult path many families have been traveling,” said Oregon Housing and Community Services Director Victor Merced.

The MPA is the first program under the Oregon Homeownership Stabilization Initiative (OHSI) to be launched. Oregon Housing and Community Services, the state’s housing finance agency, created OHSI to deliver four programs to help homeowners suffering from unemployment or underemployment because of the recession.

The MPA program is the largest of the four programs and has been funded with $100 million to help approximately 5,000 homeowners pay their mortgages for up to one year or to a maximum payout of $20,000, whichever comes first.

Each applicant will fill out an online application then meet face-to-face with an intake advisor to answer questions and to ensure that all necessary documents are submitted. Those without internet access can go to the local intake agency office in their county for help.

A certain number of eligible homeowners in each county will be randomly selected to participate. Oregon was deemed one of the nation’s “Hardest Hit” states because of its high rate of unemployment in
2009. The U.S. Treasury granted Oregon $220 million to deliver foreclosure prevention programs.

The state is working with partner organizations throughout the state to help homeowners with questions and to help administer the MPA program. For a full list of agencies and the counties they serve, see http://www.ohcs.oregon.gov/OHCS/DO/newsreleases/11-17-10-NewRelease.pdf

For more information about OHSI or to sign up to receive our e-newsletter, see http://www.oregonhomeownerhelp.org. If you are at immediate risk of foreclosure, call 1-888-995-HOPE.

OlsenDaines Holiday Greetings - The Poor Little Orphan Boy - Eric Olsen

2010-12-06T09:27:00.000-08:00

In the 1800's England had many orphans. Because of poverty, disease and death families were destroyed and even the youngest of children were sent to orphanages that were nothing more than work houses. Boys as young as five years old would work as chimney sweeps or in factories for countless hours under terrible and dangerous conditions. One such boy whose mother and father died was sent to such a workhouse. He had no family or friends. It was Christmas. He was all alone. For Christmas the orphan boys would receive no gift except for one thing. Something they dreamed about all year. One bright sweet orange.

On Christmas Eve the boys anxiously awaited their prize. For someone who has nothing an orange is a grand gift. When the time finally came for the the Master of the Orphanage to pass out the oranges to the eager orphans there was not one to spare for the newest orphan.

The boys each carried away their treasure and held it up to the light. As they smelled the sweet skin and squeezed the softness of their treasured fruit the orphan boy remained in the corner with tears rolling down his eyes. As one young boy began to peeled his prized orange he noticed the orphan boy. This boy whispered to his fellow orphan, who then whispered to another, and soon a group of fifteen or so boys were gathered together in a tight group, excitedly engaged in an important task.

After a few minutes they got up and together walked to the poor orphan boy. From behind his back the first boy drew forth an orange. He carefully handed it to the new orphan boy with a smile. This orange was formed from a wedge from each of the boys' orange and covered with the pieces of their peels. All together the boys sat down to enjoy their prized oranges.

The boys would have other oranges in years to come, but they would always remember the oranges from that year. They were the sweetest of them all.

My dad would tell me this story every Christmas. I can remember crying my heart out for the poor little orphan boy without an orange. We at OlsenDaines wish a very happy holiday season to everyone. May we each share from whatever gift we receive - no matter how small - that all might be comforted.

OlsenDaines' Attorney Michael Fuller to Present at American Bar Association Meeting

2010-11-27T11:58:00.000-08:00

Next year, February 10th and 11th, OlsenDaines' attorney Michael Fuller will be presenting a Continuing Legal Education program for the American Bar Association's mid-year meeting for young attorneys in Atlanta, Georgia. Mike's presentation will be Filing Pro Bono Bankruptcys for the Seniors and Disabled.

OlsenDaines Partner Lars Olsen Teaches Newbridge High School Students About Debt

2010-11-18T14:37:00.000-08:00

OlsenDaines partner Lars Olsen spent a day teaching classes at Newbridge High School in Rogue River about credit and money. Lars was visiting the school as part of the US Trustee's CARE program (Credit Abuse Resistance Education.) Lars appreciated the very nice thank you note he received from the school, complete with comments from the students. One student's comments were especially colorful:

"So ya man, thanx for coming in and talking about ca$h. You were a pretty cool Kat. Laid back, down to earth and all that good stuff... I now I learned a lot that I didn't know about the dollar bill's environment and what not. I never really looked into it until now because I never understood how important it was to know the details of the money world. And all the complexities!!! Boy are there so many!... So ya mannnnn.... THANKX!!!! Ps. I was that blonde dude with the shabby hair during last period@!!!@@$!#$#&*(^&()"

OlsenDaines attorney Keith Karnes Named a Rising Star by Super Lawyers

2010-11-16T10:57:00.000-08:00

Congratulations OlsenDaines attorney Keith Karnes! He has been named a Rising Star by SuperLawyers, a Thomson Reuters publication. This honor is designated for the top 2.5% of attorneys under 40 and less than 10 years of practice as voted on by attorneys in Oregon.

Keith practices primarily in protecting clients from unfair debt collection, mortgage abuse and improper credit reporting. As part of the firm Mr. Karnes offers our clients an avenue for redress not available in almost any other law firm.

The SuperLawyers article can be found by clicking here.

OlsenDaines Attorney Michael Fuller Published In Oregon Debtor-Creditor Newsletter

2010-11-08T12:39:00.000-08:00

OlsenDaines Attorney Michael Fuller authored an article appearing in the Fall 2010 Oregon Debtor-Creditor Newsletter. Fuller's article explains the mechanism of reaffirmation in chapter 7 bankruptcy.

The article can be read in full here.

Foreclosures and Bank Errors - Eric Olsen

2010-11-01T08:54:00.000-07:00

There has been a lot of news lately about errors made by banks during the foreclosure process. Things get messier as banks trying to unravel an increasing number of mortgages defaults resulting from the struggling economy. Here is a great article that details some of the reasons behind the problems:

Banks hired hair stylists, teens to process foreclosure documents, workers' testimony shows.

Foreclosure Numbers Soar To New Heights

2010-10-22T11:39:00.001-07:00

Read the story here.

The Making Home Affordable Program

2010-10-15T16:30:00.000-07:00

The US Trustee's Office has just added an informative and helpful video to its website regarding the HAMP program. This program includes opportunities for homeowners in bankruptcy to modify their mortgage to make their payments more affordable.

Watch the video by clicking here.

To Keep Or Not To Keep the Home - Eric Olsen

2010-10-08T13:29:00.000-07:00

Because of the drastic reduction in home values and financial hardships families are facing, many people are contemplating whether or not they should keep their home. For some people the decision is obvious, they simply cannot afford the payment. Others can afford the payment if they keep scrimping and sacrificing. Here are some pros and cons to consider in deciding whether or not a home is worth keeping.

Pro: Interest paid on a mortgage is deductable meaning less taxes.

Con: The home has devalued so much that it will probably take years for it to even be worth what is owed. Letting it go back now cuts the losses sooner.

Pro: If you have a second mortgage and home is worth less than the first mortgage we can strip or eliminate the 2nd mortgage through a chapter 13. This will lower what you owe on the home.

Con: If you are not keeping the home you can stop payments and live "rent free" while its going through foreclosure sometimes for up to a year or longer.

Pro: You don't have to move. There is something to be said for stability.

Con: If you are not keeping the home you don't have to pay property taxes, fix anything that is wrong, paint or keep things maintained - its going back so this con is really a "pro."

Pro: As long as you have some equity your payments will gradually reduce your loan balance and build more equity over time.

Con: If you rent you will have no interest to deduct so you may end up paying higher taxes.

Pro: Keeping the home payments current helps rebuild your credit.

Con: A foreclosure on your record could possibly increase the time it takes to qualify to buy another home if just a bankruptcy and no foreclosure.

There are many other factors to consider but these are some major ones. It is always free to talk with us about your options.

Get Help With Your Oregon Property Taxes - Matthew Casper

2010-10-04T16:22:00.000-07:00

Did you know the State or Oregon could pay your property taxes for you?

Visit http://www.oregon.gov/DOR/PTD/IC_490_675.shtml to see if you qualify (you must be older than 62 and earn less than $38,500 per year). The State will pay your property taxes each year and the State is paid back when the house is sold by you or your estate.

Once you confirm you qualify, visit http://www.oregon.gov/DOR/SCD/index.shtml to apply.

The application must be submitted between Jan 1st and April 15th. THE APPLICATION IS DUE BY APRIL 15th of the year you want the State to pay your property taxes.

Eric Olsen Interviewed On Salem's KYKN 1430

2010-09-17T12:51:00.001-07:00

On Saturday, September 11th, Managing Partner Eric Olsen was interviewed on Salem, Oregon's AM radio station, KYKN 1430. He discussed foreclosures, methods of keeping your home through bankruptcy and stripping second mortgages. To listen to the interview click here.

The Better Business Bureau - Eric Olsen

2010-09-10T14:28:00.000-07:00

Our practice gives us a unique vantage point for spotting scam artists who prey on the poor and vulnerable. Interestingly, many of these scam artists display the Better Business Bureau (BBB) logo on their advertising. This is so prevalent that when I see a business use the BBB logo it makes me nervous. Any business can pay enough money to earn the right to display the logo. This logo proves NOTHING, except that a business paid the fee and supposedly subscribed to some standards. But again, with enough money practically any business can buy the logo.

The BBB is not a government agency but a private corporation. It sells franchises to individuals in different localities that solicit businesses for subscriptions to use the BBB logo. These local franchises subscribe to the rules of the main corporation. Much like a local Taco Bell makes a bean burrito with a recipe created by the main corporation; a local BBB follows a business model set forth by the national headquarters.

I am not saying the people behind the BBB are bad however a small amount of research will show that there are a growing number of persons that have grave concerns about the BBB and how it works.

If people file a complaint against a business the BBB will remove the negative entry when it is satisfied. Businesses can still use the BBB logo when there are negative complaints. Thus, an unscrupulous business can hide its problems. I invite anyone to Google the BBB and do some research about its practices. I think that they will soon find out that there is some serious concerns about the function of this for profit "business." Remember, local BBB's are in the business to make money. It is much more productive to Google a business you are researching and "ripoff report" if you want to find out about the business' ethical record. This is usually a good source of accurate information that is not regularly removed.

So, please do not assume that when you see the BBB logo that is a safe guarantee of an honest, helpful business. In my opinion, it is a big warning that screams, "this might be con artist!" or maybe, “watch out for this Big Bad Bozo!"

Debt Settlement Firms - Rex Daines

2010-09-01T13:35:00.001-07:00

Last week I met with a client who told me something surprising. She had hired a debt consolidation company to settle her debts and it had actually settled one. But was it actually worth it for her to hire the debt consolidation company? Keep reading to find out.

Debt consolidation companies use many tactics to snare their customers, most of which disregard the truth and target those most in need. An ad currently playing on the radio asserts that Congress has passed a stimulus bill which allows people to settle their credit card debt for pennies on the dollar. This is absolutely false. Congress passed no such bill. (Of course, people have always been free to try and negotiate with their credit card companies, so that is true.) The way the debt consolidation companies work is as follows: You sign a long contract with small print agreeing to have a certain amount of money drawn directly out of your checking account each month. The company takes this money. It also writes letters to your creditors telling them that they are interested in settling the debts. This causes the creditors to send future letters to the company, not you, giving you the sense that your debts are being handled. However, these companies do NOT send any money to your creditors. After 6 months or so, the creditors have not been paid, your credit is ruined and creditors stop dealing with the consolidation company and again - look to you for payment. These companies routinely get shut down by various state attorney general offices, but the same people behind the companies simply start new ones – doing the same rotten things, with different name.

Sadly, the rest of my client's story was all too familiar. She was in my office because she had been sued and was now being garnished by one of the other credit cards supposedly being handled by the consolidation company. The settled account was originally less than $2,000 - the smallest of the client's debts. Interest on the other debts had increased by $2,000 during this time, leaving the client with more debt than when she started. When the client talked to the consolidation company, they told her to go read the fine print which stated that the money she paid for the first four months went only to their fee.

Countless Americans have paid millions of dollars to these companies. It is unfortunate because people have the best of intentions when they seek help from these places like trying to avoid bankruptcy and pay something on their debt. Sadly, the result is that the founders of these companies make a lot of money and their customers get no real relief.

The FTC is finally taking some action to help people avoid these companies. Hopefully, someday, laws will be passed to completely put them out of business. They are one of the most prevalent scams of our times and prey on people trying to survive in a tough economy.

Additionally, do not confuse debt consolidation companies with consumer credit counseling or other non-profit entities that help with debt issues. These entities can genuinely help people in need.

Stripping Second Mortgages - Eric Olsen

2010-08-23T22:40:00.000-07:00

We at OlsenDaines are dedicated to helping our clients. One of the ways we do this is by stripping or eliminating through chapter 13 bankruptcy second mortgages on homes where the value of the home is less than the first mortgage. Normally through this chapter of bankruptcy the unsecured debts are eliminated as well! We are one of the very few firms that regularly strip second mortgages through chapter 13 bankruptcy.

In June and July alone, we have stripped second mortgages totaling $2,137,000 on our Oregon and Washington clients' underwater properties. Because of these second mortgages being stripped many families will be able to keep their homes that otherwise would not have been able to afford them.

Decisions, decisions - Eric Olsen

2010-08-13T14:23:00.000-07:00

The initial decision to file bankruptcy is a big decision. Following this decision, however, come several more choices to make.

First there are the "what" decisions. What chapter of bankruptcy will be best for me, a 7 or 13? What assets will I be able keep ? What do I do before bankruptcy? What attorney will I hire? Then there are the "when" decisions. When do I file? When do I call an attorney? When do I stop paying one bills versus paying another? There are also decisions about "where and how." And then there are the "if this, if that" decisions leading into the "should" decisions. It's easy to see how once decision to file a bankruptcy can lead to many other decisions that will have to be made.

Our firm motto is "You have questions, we have answers, we can help." Another way to put this could be "you have decisions to make, we know the options and we can help you with the decisions." We make sure our clients know all of their options. We know how it important it is to know all of your options when making an important decision. It would be a disservice to just dictate to clients only one option.

That is not to say however that often one path or one option is clearly best. However, it does happen that clients are faced with many available options, each with different advantages. You would be surprised how often we are able to point out options our new clients never envisioned and give them better results than they ever imagined.

We are here to help with finding options and decisions. We count our combined experience as attorneys in our firm in the hundreds of years. But in the end it is the client's decision. How do clients make these decisions?

I will often talk to clients that have been in constant turmoil. At the end our discussion when we have developed a "plan of action," they feel a lot better. A decision on the one best course sometimes has been made. Our attorneys communicate with you. We are here to advise, not dictate. We will then sometimes suggest, "remember how you feel right now. Tonight or tomorrow when you start to think about these things and start getting churned up again, think this to yourself. I have thought this out when I met with Mr. Olsen (or whichever attorney you met with)and we came to a rational decision. It made sense to me and I felt peace." I tell the client to push the temptation to get churned up again, and remember the decision they made and the peaceful feeling. There is no need to be upset and go through the whole process over again.

Other clients go home and think about our discussion and ask some more questions. They come to decision by themselves based on complete and accurate information. These decisions are important. And the decision sometimes might be to not make a decision just yet. That in itself is often a wise decision. Get expert advice from someone who is actually an expert. Ponder or think seriously about the options you have been given. In almost every case the best path will be evident. I often say "You will be fine, these things have a way or working out. You will make the right decision."

HOA Fees and Bankruptcy - Michael Fuller

2010-08-05T17:07:00.001-07:00

A client called me yesterday to discuss the timing of her bankruptcy filing. She is moving out of her condo in Tigard because her payments are high and she has no equity, meaning she cannot sell for more than she owes on her mortgage.

She hasn't made a mortgage payment in months but continues to pay her Home Owners Association ("HOA") fees and periodic assessment because someone told her they could not be wiped out in bankruptcy.

I advised her to stop paying the HOA fees and periodic assessment immediately. HOA fees and periodic assessments can be wiped out in bankruptcy, but there is a catch.

As I told my client, it is often best to wait until after a condo forecloses to file a bankruptcy. The reason is that although any HOA fees or assessments arising before filing bankruptcy will be wiped out, any fees that become due after the bankruptcy but before the foreclosure sale are not wiped out.

HOA fees receive special treatment under the new 2005 bankruptcy laws.
Specifically, 11 U.S.C. 523(a)(16) now says home owners are still on the hook for HOA's and assessments that become due after a bankruptcy is filed, so long as the foreclosure sale has not taken place. Prior to the 2005 laws a home owner only needed to move out to avoid owing HOA fees after filing bankruptcy.

Because foreclosure often take up to several years in this depressed real estate market, an experienced bankruptcy attorney can save their client thousands of dollars by properly timing a bankruptcy filing.

Even if a bankruptcy is filed before the foreclosure of a condo, any HOA fees owed after the filing will likely be paid by the buyer at the eventual foreclosure sale.

However, this is not always the case, and a condo owner considering bankruptcy should be sure to ask their bankruptcy attorney about the special treatment of HOA dues. Specifically, how to properly time the filing of the bankruptcy to avoid paying as little as possible.

Bankruptcy Doesn't Mean Bad Credit - Bend Bulletin

2010-07-23T15:03:00.000-07:00

Original Article by Adrianne Jeffries / The Bulletin
Published: July 21. 2010 4:00AM PST

Bankruptcy is a lifeline for consumers who find themselves drowning in debt, but it’s often a source of shame that leaves a black mark on credit history. And yet the consequences of discharging or restructuring debt through a bankruptcy may not be as dire as you’d think.

Spiking bankruptcies may have eased some of the embarrassment associated with filing for bankruptcy, said Rebecca Snyder, president of Evergreen Financial Counseling, an Oregon-based nonprofit that provides the pre- and post-bankruptcy credit counseling required by the bankruptcy court.

More consumer bankruptcies were filed locally and nationally in the first half of 2010 than in the same period in any year since the start of the recession. At least 1,017 people filed for bankruptcy this year in Deschutes, Jefferson and Crook counties as of June 30, according to the U.S. Bankruptcy Court, District Oregon.

“There’s 250 people just in Portland alone filing bankruptcy every day,” Snyder said. “It’s so common that it does not hold the same negative social stigma as it used to, especially in this economic climate that we have here in Oregon.”

Bankruptcies are included in consumer credit reports for between seven and 10 years after the debt is resolved, depending on the type of bankruptcy and the credit rating agency. That can affect a consumer’s ability to rent an apartment, get a loan or buy life insurance, but it’s not as damaging to credit as some people think, Snyder said.

People considering bankruptcy are usually struggling with so much debt that they already have bad credit, she said, and a bankruptcy can actually improve the way someone looks on paper by wiping out their outstanding debt.

A consumer’s credit score depends largely on payment history, amount of outstanding debt and length of credit history, according to FICO, a private company that generates a widely used credit score.

Another surprise is that credit is surprisingly easy to get after a bankruptcy, Snyder said. People who file for bankruptcy are legally barred from filing again for between two and eight years depending on the type of bankruptcy, which reduces the risk for lenders.

“It’s really strange ... once the bankruptcy is complete, they get credit card offers in the mail like you would not believe,” she said. “What we recommend is they chop them up and throw them away right away.”

An Oregon law that took effect July 1 eased the repercussions of bankruptcy further by banning most potential employers from checking a job applicant’s credit history.

Some kinds of credit, like mortgages, will still be tougher to get after a bankruptcy. Federal underwriting guidelines regarding bankruptcy have not changed since the global recession, said Casey Jones, branch manager and loan originator at Academy Mortgage in Bend.

People who filed for bankruptcy have to wait four years before they can be eligible for a mortgage, he said, although those who filed a Chapter 13 bankruptcy can be eligible after two years if there are extenuating circumstances such as medical crisis.

The most important thing is to rebuild your credit, he said. One way is to take out a “secured credit card,” which is like a debit card but helps consumers re-establish good credit. Consumers hand over collateral or cash to the bank that determines the credit line for the account. If you put $100 on the card, you can charge up to $100.

Jones also advises requesting a credit report to make sure the bankruptcy was reported correctly. Consumers can order one credit report from each of the three largest rating agencies every year, for free, by calling 1-877-322-8228 or online at annualcreditreport.com.

A bankruptcy on someone’s credit report will always send up a red flag, he said, but it’s not a deal breaker. A loan applicant who rebuilds his or her credit rating after a bankruptcy is on equal footing with an applicant who has the same credit score and no bankruptcy, he said.

“Just because you file for bankruptcy doesn’t mean you’re a credit criminal,” he said.

Adrianne Jeffries can be reached at 541-633-2117 or at ajeffries@bendbulletin.com.

Why Honesty Is Always the Policy - Eric Olsen

2010-07-16T12:44:00.000-07:00

Sometimes we encounter a potential client that is hesitant to tell us the complete truth about his or her finances. With our experience, when we meet with somebody who tells us information that seems not quite right it triggers our sixth sense.

Maybe the potential client wants to protect an asset, person or creditor. Hiding information from his or her bankruptcy attorney is the worst thing a potential client can do. Without access to the complete, accurate and honest facts we cannot do our job. People sometimes self analyze their situations and actually think that withholding information or changing the facts will help. This is never the case.

There is virtually no problem in this area that cannot be resolved ethically and honestly if we have the truth. The solution may involve some preparation and/or waiting for a certain period before the bankruptcy is filed. With accurate, honest information the matter is resolved according to the law and the client has a clear conscience. Worried potential clients should remember how long we've been practicing in this area. Our combined experience is in excess of 100 years. We have encountered almost every problem imaginable. We know what to do. We don't want anyone to be scared enough to forget that honesty is definitely the best policy.

Employment and Bankruptcy - Eric Olsen

2010-07-09T16:08:00.000-07:00

Recently, a client of mine was offered a job. She was initially thrilled but her moment of joy was tainted when the potential employer advised her the company was going to check her credit. This client had recently filed a bankruptcy and she was very worried about how a bankruptcy on her credit report would affect her new job.

She immediately emailed her concerns to me and I was happy to tell her what I have told others who are similar situations. The Bankruptcy Code, at 11 U.S.C. § 525(b) states, "No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt."

Declining employment of a potential employee solely because of a bankruptcy filing is a violation of federal law. There are even more stringent provisions when the employer or proposed employer is a governmental unit. Failure to follow these provisions can result in serious consequences.

Laying out the facts on the table can be a good idea. Unfortunately there are probably a lot of employers that don't know this law. However, we never hear from clients complaining about a job being affected by a bankruptcy.

Finally, as of this month Oregon now bans most jobs from doing a credit check before hiring. More information can be found here: http://www.barran.com/display-alert.asp?AlertID=48.

Get Him Down Now!!! - Eric Olsen

2010-07-05T13:51:00.000-07:00

Mixup is the initial approach fix for a VOR flight approach into Klamath Falls. It is an artificial point where planes begin their approach to runway 14 from the north end of Klamath Lake. Klamath Lake is the largest body of fresh water west of the Rocky Mountains. It is thirty two miles long and 8 miles wide and an ice machine in the winter. Ice can be a killer. It deforms airflow over the wings affecting lift - or your planes ability to fly- never a good thing. You never want to stick around in ice- you want to get below it, above it, but never stay in it. Sometimes ice can accumulate ever so slowly or sometimes it get caked on in minutes. One time on a flight from Bend to meet my Klamath Falls clients I was cleared to descend to 8000 feet right in the thick of a pretty nasty cold wet weather system. Because of unusual traffic I was placed in a holding pattern flying in a racetrack pattern right in the ice.

Klamath Falls Airport is also an Air Force base. It is filled with F-15 fighter jets that often take off like rockets two by two. I called the controller at "Kingsley approach" at Klamath Falls. I asked the controller when I might expect an approach clearance, that I was in moderate icing. He told me to remain in a holding pattern and in around 10 minutes he was going to bring me south of the field for an ILS approach because of traffic coming from the south. I knew that jaunt would take me another 20 miles to the south.

Flying in the clouds I saw ice building up on my wings at an uncomfortable rate. I waited a few more minutes and advised the controller "I am reporting severe icing... Requesting straight in VOR Alpha approach. Please advise when I might expect approach clearance." No pilot likes to declare an emergency. But by saying this I was making it pretty clear that I was in a fix and I wanted his attention. I thought a report of "severe icing" would get his attention and I was saying everything but that I was in an emergency. You never let someone report severe icing and not do something about it. This I thought was at least enough information to make him change his plans for me. The controller answered "standby 6715M, there is a Lear jet on a 10 mile ILS final approach" A plane was landing on the same runway from the south. This is not what I wanted to hear.

I didn't want to wait any longer and was ready to declare an emergency. I was getting scared; the ice on my plane was nearly an inch thick and growing by the minute. It is very unusual for unrelated traffic to pipe on the radio while flying - it is all business between air traffic control to and from the pilot but at that moment a new voice came over the radio. Another pilot, probably one in the F-15's that were in the near blue yonder, barked like a commanding officer to the air controller, "GET HIM DOWN NOW!!!"

A few seconds later an more mature controller's voice came over the air and said, "Lear jet your landing clearance is aborted please make a left 180, climb and maintain 8000. Break! Six seven one five Mike (my plane) you are cleared present position for the VOR A approach contact tower at (frequency) and expect clearance to land upon contacting tower."

Thus cleared for the approach I immediately pushed the yoke forward and began the descent into Klamath to an uneventful but thankful landing. As I taxied up to Klamath Air, the Line Man (who I knew well) looked at my ice caked wings and said, "Hey Eric. I know where you can get a cheaper icemaker."

Some people find it hard to declare a financial emergency. There is a section on our website where we explain emergency bankruptcy filings. We talk about what is and what is not an emergency. Emergencies do happen. Almost every week we have clients coming in with a foreclosure a few days away. That is an emergency. Today I spoke with a lady that had a repo agent out at her house trying to pick up the car; another woman who was being garnished and all kinds of other emergencies. Our staff knows when someone is an emergency that it is time to get them in and get the problem resolved. Kind of like my guardian angel that cold December day who knew I had an emergency and said, "GET HIM DOWN NOW!"

I Didn't Do It! - Eric Olsen

2010-06-23T16:44:00.000-07:00

On the morning of March 25, 1993 an earthquake measuring 5.6 on the Richter scale hit Scotts Mills, Oregon. This is about 25 miles away from where I live. A noticeable earthquake in the Pacific Northwest is a rare event. The walls of my home shook from the earthquake and my entire family felt it. It only lasted about 10 seconds and as soon as it was finished, I checked on my children. I called upstairs to my boys and asked, "you guys okay?"

One of my sons, who was often getting into trouble of some sort, yelled back with sincerity, "Dad, I didn't do it!"

It is a similar mentality that often brings people to bankruptcy. In the vast majority of cases people can throw up their hands and say "I didn't do it." They have simply faced too many circumstances out of their control. Despite their best efforts they have ended up at our door. It is important to remember that even geniuses cannot perfectly predict their finances. Everyone is learning. Sure, there are things we can do to better protect ourselves but not everyone can earthquake proof their financial lives. And then there are earthquakes so powerful that no amount of preparation will prevent damage.

There are few of us who if faced with a sudden change in favorable circumstances would not deal with serious financial repercussions. I have seen clients facing lost jobs, deaths of their spouse or children, serious illnesses, unplanned retirement, catastrophic family issues, and many other situations that create serious financial burdens.

We need to be very careful about casting stones concerning another's financial problems. Very few leave this earth without having faced a serious financial crisis. Some of us seem to live on financial fault lines. Thankfully there are solutions and remedies. There is no situation where we at OlsenDaines cannot form a "plan of action" to straighten things out and take the pressure off. No matter how young or how old our clients are, how serious or minor their problems or even how often they return to our doors. We mean every word of our firm motto: "You have questions, we have answers, we can help."

Fool's Gold - Eric Olsen

2010-06-17T15:51:00.000-07:00

I own a small sluice box. Once a year I take it on camping trips and use it to screen for gold. While doing this I have often found iron pyrite, commonly known as "Fool's Gold."

Fool's Gold is bright and shiny, just like real gold, but aside from that it is entirely different. Fool's Gold and real gold often exist together, but it is much more common to find the former. One can easily distinguish between the two minerals in the sluice box because the light Fool's Gold easily washes away and real Gold sticks because it is heavy.

A lot of advice out there is nothing but "Fools gold." It looks pretty good when first examined and one is easily tempted to think it's the real McCoy. But on closer examination it is nothing but a fake, cheap imitation that washes away. I thought I would list the most common "Fool's gold" advice out there in no particular order.

1. Debt Reduction Companies: Other than your local consumer credit agency all the companies that advertise on TV or internet give nothing but "fools gold" advice. They have been essentially outlawed now in Oregon. Most debt reduction companies sucker good people and all they care about in the end is their own self interest and the money they can scam with the promise that they will resolve debt problems.

2. Tax Resolution Law Firms: They technically comply with the law so they don't get disbarred but only give their clients half the story. Google any of their names (you know who they are) and rip off and/or fraud and read scores of frustrated stories from real people. Once again these firms give "Fool's Gold" advice by not letting their clients know about bankruptcy options.

3. Failing to advise people when they can strip a 2nd mortgage to keep their home.

4. "You can't wipe out tax debt." Actually the amount of "Fool's Gold" advice about taxes from CPA's, attorneys and do gooders could fill a thousand dump trucks. Like what one of my partners recently wrote - "You don't know what you don't know."

5. Advising people to reaffirm their car loan or not doing it the "right" way, leaving a debtor on the hook after bankruptcy when he/she runs into financial hardship and has to surrender the car.

6. Going with the cheapest attorney you can find for a bankruptcy. People think they are saving money but then end up with debt they could have eliminated and don't even know they have been burned.

7. Trying to analyze one's bankruptcy options without solid legal advice. Self-education in bankruptcy is fine but making decisions solely based on information learned from the internet on what chapter to file is frankly a "Fool's Gold" choice. Days spent on legal advice message boards cannot compete with years of experience. How often have I heard "I had no idea we could do that." Or "I wish we would have come in sooner, we've wasted so much time and money."

I could go on but you get the idea. My partners and I have nearly a hundred years of combined experience in helping people with bankruptcy matters. When factoring in the other attorney in our firm there is well over a century of practice time between us all. We actively discuss our clients' interests and communicate with each other about how to best solve their problems. When someone comes in with a complex problem we committee the problem, with as many cases as we have handled over the years- tens of thousands, there haven't been too many complex issues or fact scenarios that we haven't faced multiple times. We never ever give advice based on what would generate the most fees or what would be the least tasking course for our attorneys. We give advice aimed at improving the lives of our clients and it is pure gold.

Creditors Gone Wild - Eric Olsen

2010-06-09T10:28:00.000-07:00

I have been practicing bankruptcy law for many years. During this time I have had many opportunities to be surprised at what lengths some creditors will go to to collect a debt. There are very strong federal and state laws on the books protecting the rights of debtors, but creditors often disregard these, thinking that using fear and shame against vulnerable people will afford them immunity from legal recourse.

At our firm it doesn't work this way. Our Unfair Debt Collection practice aggressively pursues the rights of our clients and we can help you. Anyone who feels they might have been harassed or by a creditor can contact our firm at 1 (800) 682-9568 and tell us your story. As follows are a few true examples of creditors gone wild:

• The creditor that wanted to take an oxygen tank from my sick client. The client/husband was renting an oxygen tank and was behind on the payment. The rental company came to pick up the oxygen tank. Client/wife would not let him and he literally broke the door trying to get in the house to repossess the oxygen tank. While the wife was holding the door shut the husband was on the couch gulping in the oxygen. It turned out to be a very expensive attempt at repossession for the rental company.

• The creditor that told my client "It had been better had you died then go to the hospital knowing you would not be able to pay the bill."

• The creditor that called the client's 10 year old daughter and asked her if her "daddy was all right" to manipulate her into giving the phone number of the mother who she then called at a business meeting. While she was trying to get the creditor off the line the daughter called her crying and worried about her daddy who she was sure had been hurt in an accident.

• The creditor that laid flyers all over my client's front lawn that said "dead beat." An expensive exercise in copying for the creditor.

• The creditor who told my elderly clients when he found out where they lived "Oh you live in ___ ,well then, you are just low life scum." When we were done I am sure the collector regretted what he said.

Our New Head Office

2010-06-07T00:16:00.000-07:00

This is a big week for our firm. This Friday is the open house for our new head office at 3975 Hagers Grove in Salem, Oregon. We have eighteen offices throughout Oregon and Washington. Many of these offices we have had for over twenty years. We consider ourselves local wherever we have on office but the head office is where it all started. We are very grateful for this beautiful new facility. We have an open house scheduled between 4-7 p.m. this coming Friday June 11. Invitations have been sent to family, friends and colleagues. While we have had too many clients over the years to allow us to send them each an individual invitation, any past or current client is invited to come see the new facility.

We have gone to great deal of effort to remodel this beautiful building and grounds. We have five conference rooms in this 15,000 square foot building: Columbia, Umpqua, Rogue and Santiam. All were named in honor of the beautiful Northwest locations where our firm had its first offices. We have the Ernest R. Tigner Conference room, named for my partner and brother Lars' and my grandfather. Stories of his hardworking life have graced this blog before and will again. We have the Brenda Brown video room named in honor of my first secretary who faithfully served the firm for nearly thirty years. Finally, the Charles C. Stratton video room was named in memory of our former office, a lovely Victorian home built in 1886 which housed our firm for close to thirty years.

We are thankful to West Coast Bank and especially Sam Sloper who has always been a source of sound financial advice. We are grateful to Doug Lethin (also a grandson of Ernest R. Tigner) whose company C and R Remodeling made the changes that were necessary for our new office. But most of all we are thankful for all our employees, past and present. It is because of them that the attorneys of our firm can do the work we do. And it is to them we dedicate this open house.

When We Don't Know What We Don't Know - Rex Daines

2010-06-02T14:12:00.000-07:00

Sometimes we don't know what we don't know. I did not learn this in a philosophy class, but in the real world, and I was reminded of it lately. In the United States we frequently hear that we live in the freest country on earth. In most ways this is true, but it leads us to also believe that all of our laws should comply with common sense. The longer I practice law, the more I realize that this is not true.

However, there is one law that does make sense. It deals with owing the IRS money when a creditor writes off a bad debt. Frequently, the creditor will send to the IRS a form called a 1099C, the "C" stands for cancellation (of debt). For example, if you have a debt for $60,000 and the creditor settles for $20,000, then the creditor sends the 1099C to the IRS indicating "income" of $40,000. In some circumstances, a person needs to pay income taxes on this $40,000, but common sense, and thankfully the Internal Revenue Code, confirm that in most cases this is not true. Specifically, if a person is 1) insolvent, or 2) files a bankruptcy, then no taxes are owing. But here's the catch - a person must fill out the correct IRS form. It is IRS form number 982.

Last week a client came to see me who had a very large tax assessment from the IRS. He talked to his accountant who confirmed that he must pay. He then mumbles something about the second mortgage on the home that was foreclosed and I instantly knew the problem. The problem was that the accountant didn't know what he didn't know - that the IRS has a form 982 and rules about 1099c's and insolvency. Until recenlty, most accountants have never had to deal with this issue. The client was insolvent and was able to file an amended return including the 982 which was much less painful that paying the IRS for the next 5 years.

Wise Words From Plato

2010-05-26T15:52:00.000-07:00

Be kind to everyone, for everyone you meet is fighting a hard battle.

Superwoman - Eric Olsen

2010-05-23T19:00:00.000-07:00

Years ago I got a call from a very sweet elderly lady who wanted to know if she was still "bulletproof."

"Bulletproof?" I asked. "Do you mean judgment proof?"

"No," she responded emphatically, "bulletproof. The last attorney in your office I talked with said I was bulletproof. And I want to know if I am still bulletproof!"

We then had a lengthy conversation on her financial situation and she was indeed judgment proof or - as she liked to put it, "bulletproof."

We actually speak to lot of people who needlessly worry when they are in fact "bulletproof." Each state has exemptions that are set up to protect personal property. For example in Oregon you can bring home a net of $217.50 per week in wages that are protected from garnishment. Anything you make under that amount cannot be garnished.

Social security, pension, unemployment and retirement incomes are all exempt from garnishment. There are exemptions for cars, cash, homestead and more. There are a whole host of reasons why a client might be "bulletproof." We will talk with anyone and advise them if they are a superman or superwoman. These people may still need and/or want to file bankruptcy but knowing about a super power can really help cut the stress level.

And if a caller is not bulletproof - then we will tell him or her what needs to be done to avoid the bullets!

I Am Right and You Are Wrong - Eric Olsen

2010-05-20T11:40:00.000-07:00

Yesterday, something I had to tell one of my clients reminded me of a conversation I recently overheard two of my grandchildren having. My wife and I were headed to Chuck E. Cheese and Liam (5) and Isla (2) were behind us in their car seats.

Liam said to his sister, "Isla I am RIGHT and you are WRONG!"

After a five second silence, Isla's soft voice said, "I'm right and you're wrong."

Liam then angrily responded, "NO ISLA! I'M RIGHT AND YOU ARE WRONG!"

Isla then took an even longer pause and sweetly asked my wife, "Grandma? Why is Liam always wrong?"

Liam sighed exasperatedly and said, "I'm just going to ignore her."

Well, yesterday a client* called and was insistent that other attorneys and plan administrators were telling him I was wrong about some advice I had given him. He had borrowed some funds from his 401k through his employer. Part of his employment contract stated that the 401k loan must be paid back unless his employment was terminated. I advised him that in chapter 7 or chapter 13 the obligation to pay the loan through the employer would be terminated and he would face a tax penalty.

There was, however, some disagreement from others whether a bankruptcy could stop the repayment of the loan. It is true that in a chapter 7 he would have the opportunity to continue with the loan payment to avoid a penalty. But in chapter 13 because of the size of the loan repayment amount the bankruptcy trustee would never approve a repayment of the loan absent equitable payment to his unsecured creditors.

Apparently he had gone to other less experienced attorneys who did not agree with what I said. I found myself resorting to the "I am right and you are wrong" defense.

401k loans can be terminated by either chapter of bankruptcy available to consumers. Bankruptcy filers do not have to quit their jobs. There will be tax penalties but in a chapter 13 that tax can be paid through the chapter 13 plan.

In this specific situation the 401k repayment amount was so high it made the difference of whether or not this client could afford to keep his home. Because his home was worth less than his first mortgage he could strip off the second mortgage and with the added funds not having to make that 401k payment would give him, he would be able to save his home. Eliminating the 401k loan payback made this all possible. I was not sorry to tell him, "I am right and they are wrong."

*as always, some personal details have been changed to protect client confidentiality.

Banking Bullies - Eric Olsen

2010-05-13T09:38:00.000-07:00

Lately people may be noticing their financial instutions are acting more and more like grade school bullies. They are intimidating, pick on people less powerful than them and take a lot of lunch money.

We constantly advise bankruptcy clients to terminate their credit union account if they owe money to their credit union. Every credit union savings and checking account has a provision that states if you cause the credit union a loss they will "terminate you." And just like Arnold they will. By shutting down the credit union account first, one can bypass this hassle and embarrassment. It is also not a bad idea when filing bankruptcy to switch bank accounts if money is owed to a bank. There never was a problem before with banks but the recent financial crisis has created an atmosphere of act first think later. If either form of financial institution suspects a problem they will not hesitate to take money from their customers' accounts and pursuant to the language signed when an account is opened - it is legal for them to do so.

Customers do not necessarily have to go in and shut down accounts. They can take the money out and never use the account again. There used to be a Credit Union representative in southern Oregon that came to bankruptcy hearings and gave a sour spiel about "you understand you can no longer use your account, blah blah blah." He wasn't there to ask any questions - he just wanted to rub in that they would no longer be allowed to be customers. I never let him give his speech to my clients. I told the trustee, "Unless Mr. So and So has a question he can forego his diatribe as we have no intention of using the credit union account." And for whatever reason, this man has stopped attending hearings.

Of course there are good people that work at credit unions. However the credit union industry just seem to take things personally - more so than other creditors.

My office manager once told me this story about a credit union representative:

The credit union had illegally seized funds and we retrieved them for our client. She wanted to pick up the funds herself to prevent the delay from mail. She went to the credit union and as the credit union representative was handing her the check she jerked it back and said, "I want you to know just one thing, your attorney is an a******."

The client smiled as she grabbed the check and simply said, "Yes, I know. That's why I hired him."

Running On Empty

2010-05-07T11:18:00.000-07:00

I have run out of gas three times while flying. Before you think I am crazy I should tell you that I have another tank in the plane that is always full. I simply turn a handle and everything continues to work. However it is always nicer to turn the handle before the propeller stops spinning. I clearly remember the first time I "ran out of gas."

I was just nearing the crest of the Cascades at around 11,000 feet when the engine stopped. My heart leapt into my throat. I began to descend and since I was on an instrument flight I notified the air controller at Seattle Center that I was going to bust my altitude. I advised the controller my engine had stopped and "declared an emergency."

Thankfully, within a few seconds of all this happening I realized I had failed to switch gas tanks. I turned the handle to switch tanks and engine immediately began to run. I called the controller to advise that I had power again and flew on to my destination no worse for wear except for some embarrassment. There really was no emergency but for the few seconds I thought there was - I was pretty worried.

We talk to many people that have "declared emergency" in their financial lives. They are worried, stressed and embarrassed. Some are depressed or frantic. Many feel hopeless. But all day we tell people "you are in no emergency." Then we explain what we can do and why they should stop worrying. As bankruptcy attorneys one of the things we say most often is "everything will be all right." I often like to add "you will be fine." And it is absolutely true. They will be fine. We are here to solve problems.

So many times I wish people would have contacted us sooner. They did not have to go through the worry, stress and anguish. We have many tools available to help people through difficult financial times. It doesn't hurt that we have been helping people in this field now for over thirty years. Experience in this field is critical. And our firm has that in spades. We know how to turn that handle to switch over to the other tank of gas and say "You will be fine."

Be Kind to Your Fine Feathered Friends

2010-04-29T19:48:00.000-07:00

Geese are vigilant parents. They mate for life and the raising of goslings is a shared responsibility between the male and the female. The male stands guard while the female is nesting. They are so loyal that when a hunter kills one mate the other mate will return to where its mate was shot. The last 23 years I've witnessed several geese parents raise their young on my farm. In those 23 years I've only seen one gosling lost. Just last week, a bass tried to grab a newborn gosling. The male dove under the water and attacked the bass while the female quickly led her goslings to safety.

And then there are people...

My younger brother collected autographs when he was a boy. One of my favorite was the signature of J. Paul Getty, who was then reputedly the world's richest man. Mr. Getty was famous for being a miser. His autograph was on the torn envelope my brother sent to him, simply signed, "regards, J. Paul Getty." He was divorced five times and had six sons from four of those wives. Getty was quoted as saying, "A lasting relationship with a woman is only possible if you are a business failure." He even installed a pay phone in his home for guests to use. A grandson was kidnapped in 1973 and held for ransom. Getty held the family purse strings and refused to negotiate until his grandson's bloody ear was sent to a local newspaper along with the threat the other ear would be sent in ten days. Although reluctant to pay, Getty finally negotiated and paid two million to the kidnappers who were never caught. His grandson never recovered from the trauma, became addicted to drugs and as a result of an overdose in 1981 became mute, blind and paralyzed for the rest of his life.

People often agonize about sharing their financial struggles with their children. Many of my clients are concerned about whether or not they should talk to their children about their bankruptcy. How much you share with your children about your financial situation and bankruptcy is a personal decision. However my experience is that children seem to worry more about their parents worrying than they do about money. A wise man once said, "the greatest work we will ever do will be within the walls of our home." Money can be a distraction from what is really important. Yes, we all need enough for our needs. And that is where we at Olsen Daines come in. Bankruptcy can help protect families. Save homes. Stop wages from being garnished. Protect the family transportation.

I will never forget a sweet widowed woman who came in to visit with me years ago. Her family's finances were a mess and her husband passed on before things were straightened out. One of his last words to his wife were "go see Mr. Olsen; he'll know what to do." And I did. Bankruptcy is here to protect the family, take the pressure off parents, and ensure that people can have their basic needs met. Why? So parents can give their children what is most important, attention, kindness, love and affection. The lasting things we all need and remember.

Be Kind To Your Web Footed Friends

2010-04-23T11:09:00.000-07:00

The water feature at Olsen Daines' lovely new Hagers Grove office has acquired some new tenants. Olsen Daines prides itself on being a family friendly business and so will let the ducky family stay.

A Clean Sweep - Eric Olsen

2010-04-22T16:28:00.000-07:00

Robert Myers worked as a chapter 13 trustee in Oregon for nearly 20 years. I liked him very much. I was in my twenties and he was at least fifty the first time I appeared in court with him.

One time when we were having lunch, he shared with me that he had been a vacuum cleaner salesman in college. Today most people buy their vacuum cleaners from retail stores but forty years ago in-home vacuum salesmen made a booming business. The sales were high pressure and usually involved a four figure purchase price paid over several months at high interest. When I first began my practice I had many clients who owed several thousand dollars to vacuum cleaner companies. These debts were always secured so we got rid of the debt by giving the vacuum cleaners back.

A while after this lunch it became apparent that Mr. Myers had forgotten sharing a piece of his career history with me. Almost every time I met with him for bankruptcy hearings I would have clients who were surrendering their vacuum cleaners. I would tell Mr. Myers, "My clients are letting the vacuum go back- I told them to never trust a vacuum cleaner salesman."

He would look at me quizzically with a look that said, "do you know something about my past I don't know you know?" Then he would go on to say, "Yes, Mr. Olsen is right, you can get a Hoover at Wal-Mart for $100 and it will work just as well. Never trust a vacuum cleaner salesman ever!"

"That's right," I would pipe in, "they are not to be trusted."

He would give me that look again. I gave him the same line every time an overpriced vacuum came up - for years. And every time I saw that same look in his eyes. It was the same look your guilty kid has when he is covered in cookie crumbs and pretending that he doesn't know where the cookies went.

While door to door vacuum sales are not as prevalent these days, there is another overpriced product that people have been pressured to buy - time shares. Just like you could buy a Hoover that works as well as a two thousand dollar vacuum cleaner for a tenth of the price, you can get a vacation for much cheaper than the cost of a time share. There are those who will insist that time shares are the only way to go but we almost always advise our clients to let their time shares go. The yearly maintenance fees alone usually equal the cost of a normal vacation - and this is before you compute the money lost on the principal purchase.

We Are Here As Lawyers - Eric Olsen

2010-04-15T12:51:00.000-07:00

In the early 1980, Lt. Col. Oliver North was involved in what became the Iran Contra affair. The US was selling arms to Iraq and having Iraq pay a cut to Nicaraguan rebels that were fighting a Marxist government. This all was supposedly contrary to law and eventually led to congressional hearings involving Oliver North. The hearings were very contentious. North was represented by an attorney, Brendon Sullivan. He constantly objected to the congressmen's questions and demanded they be reworded. Finally in exasperation one of the congressmen demanded that Sullivan let his client answer the questions. Sullivan gave what became a famous reply. "Well, sir, I'm not a potted plant. I'm here as the lawyer. That's my job."

As bankruptcy attorneys we are not potted plants. We are lawyers. We are here to protect our clients, give them our best advice and guide them through this process. This involves not only the bankruptcy but all related areas. That is why we have developed a website that really helps people. It has an entire section on credit rebuilding. We have a recorded hearing for people to listen. We have multiple forms. We have a lengthy question and answer section and the ability for clients to contacts us on weekends and evenings. Consequently nearly every night of the week we have an attorney talking with clients every 15 minutes and one of the partners has telephone appointments with clients for many hours every Saturday.

In line with our commitment to vigilant representation of our clients' needs, we also have an attorney in our firm that sues creditors for unfair debt collection. We work actively with the state legislatures where we practice to implement new laws to protect our existing and potential clients and all citizens of these states.

We don't always do what the client wants us to do or for that matter what someone else thinks we should do. We advise our clients. We give them their options and advise which one is the best. So we say with Brendon Sullivan, "We are not potted plants, we are here as lawyers, that's our job."

Hard Times - Eric Olsen

2010-04-08T16:27:00.001-07:00

It's no secret that the Pacific Northwest has been hit especially hard by our country's economic trials. Bankruptcy attorneys have an especially accurate viewpoint of the plight of struggling families. Every day I visit with hardworking men and women whose greatest wish is just to be able to support their families.

These recent hard times are not the first lean years our nation has seen. Some of the stories I hear remind me of my wonderful grandfather who passed away about twenty years ago. Born in a sod hut in Kansas in 1900, he spent many years struggling financially. He was a kind and hardworking man but his life as a father was one trial after another as he raised his family of four sons and three daughters during the Great Depression. A written copy of his life story is one of my choicest possessions. He wrote the following about trying to find work cutting poles for dock pilings for the Oregon coast:

I worked at two or three of these places, and the last one that I hit that day was in a little town by the name of Summit. I drove up there late in the afternoon because somebody had told me that a man up there was really paying good money. I waited for this fellow at the country store. I sat there in the light of an old gas lantern hanging from the ceiling. The storekeeper told me that the fellow would be coming in around 5:00. I waited. I stuck it out until 7:00, and I sat there and reminisced back about my life. I was really low. That was the most discouraging day of my life. The store closed up and I went home to my family. The kids were all home from school, and Mae had dinner on the table. No matter how low I got, Mae was just the same, and always providing for our family. We were a family, we loved each other and they were happy.

In 1939, his sixteen year old son Donald contracted typhoid fever in Albany Oregon. His journal relates the following:

We tried to get him in the hospital, but the superintendent of the Albany Hospital would not let him in. So the doctor came by twice a day. We had a chart set up, and we took his temperature regularly. But to no avail. Donald passed away that fall of 1939, and I know that even though I had seen some rough times, this was the roughest. I realized that, as I looked down in the coffin that day and saw Donald lying there, I had been a millionaire all my life and did not know it until then. I had a nice family, health and that was my wealth. I then realized then how unimportant the material things of life are. If you have your health and a nice family that loves you, you have the whole world.

Hypothetical Questions - Eric Olsen

2010-04-06T09:11:00.000-07:00

What is a hypothetical question?

The common definition for hypothetical question is a question based on assumptions rather than facts, directed to an expert intended to elicit an opinion.

As bankruptcy attorneys we often hear our clients ask "what happens if this or that thing happens?" These are hypothetical questions. Often I know that this or that thing is not likely to happen. Sometimes I even tell them their odds of getting hit by a meteorite are about the same as their worries coming true.

As busy attorneys it is sometimes tempting to tell clients we don't have time for their hypothetical questions. I have given way to this temptation myself. But this was a mistake.

Our firm doesn't want clients sitting home worried about "what ifs". I will always try to answer questions even if they are a hypothetical. A lot of times these questions can be answered by simply saying the "odds of that particular thing happening are low and if it does happen we know exactly what to do."

Bankruptcy attorneys are not like politicians who are constantly stating they won't answer a question. Every question is a good question. We realize that this a new and scary experience. A good portion of our job is to answer questions and assure people that we will work together to find solutions to their problems.

Flight Of the Litigator - Eric Olsen

2010-04-02T12:42:00.000-07:00

Our firm has many offices throughout the Pacific Northwest. For many years I would fly in a small plane to get to these offices - often through all kinds of weather.

On February 7, 2002 I was in Klamath Falls and had finished my appointments. I had bankruptcy hearings scheduled for the next day in Coos Bay. I planned on flying from Klamath Falls to North Bend (a city close to Coos Bay). I began my trip and filed an IFR (instrument) flight plan. I was advised of an approaching storm but was told its freezing level was high enough to not be a concern for my flight. As it turned out, however, the storm that was brewing above me would defy the forecasters' predictions and become one of strongest storms on Oregon's National Weather Service record.

As I began my plane's ascent, a developing low pressure system came on shore in Southwest Oregon. It grew into a formidable storm as it quickly moved northward into the lower Willamette Valley. This storm battered the region, and produced 50 to 70 m.p.h. wind gusts in Lane and Linn Counties that caused significant property damage and power outages. Winds as high as 88 mph in Bandon, 84 mph in Gold Beach and 70 m.p.h. in Eugene were recorded.

I climbed out of Klamath Falls to around 8000 feet. I was below the freezing level but as the clouds quickly enveloped me I realized I headed straight for the eye of the storm.

I eventually ended up at 4000 feet trying to avoid the storm's huge headwind. Blackness surrounded the plane and the rain was intense. It was like being in a giant washing machine. There was no thunder and no wind shear, just strong winds and rain like I have never seen.

Halfway into the flight the rain began to leak into the plane and a loud warning began to sound as the landing gear alarm started going off. I was talking with the flight controller at Seattle Center who directs IFR traffic. I knew he could hear the alarm in the background and his voice sounded concerned as he tried to direct my progress through the storm. I finally told him that nothing was wrong and the gear alarm was probably caused by some moisture. He thanked me but said he was getting worried.

But I was concentrating too hard to get worried. The Controller followed my progress closely. I made the straight-in VOR approach to North Bend and broke out of the clouds at around 1000 feet. I lined the plane up for runway 22 as the wind headed straight down the runway.

There is no tower at North Bend and it was late enough in the day that noone was there. It was indeed a very strange landing. I stopped in what seemed to me like a little over a 100 feet. I soon found out why when I taxied to the ramp and got out of the plane. I watched it start to roll away! I jumped back in the plane and stood on the breaks with all my weight. It took some doing but somehow I managed to get the plane tied down by myself.

I don't gamble but that night I went to the Old Mill Casino with Rick Harder, an Eugene bankruptcy attorney. He taught me how to play blackjack. I put down $20. I walked out with $100.

The Morality of Filing Bankruptcy - Eric Olsen

2010-04-01T09:34:00.000-07:00

Many people struggle with bankruptcy because they feel it is morally wrong. They agonize over the decision. Some go to great lengths to avoid bankruptcy even to the extent of borrowing more money until they reach the bitter end of no more money to borrow and no way to pay it back. There is nothing wrong with struggling to pay your debt back. However it is important to realize that there is a point where paying back debt is simply not possible.

Bankruptcy laws actually originate from the Old Testament and were incorporated into the constitution of the United State by our founding fathers. Under U.S. law, a debtor may receive a discharge of debts in a chapter 7 every eight years. Under Mosaic law, which many people believe came as a revelation from God to Moses, the release of debts came at the end of seven years.

Deuteronomy Chapter 15, verses one through two clearly state, "At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD's release."

Additionally, in the Old Testament God declared to Moses at the end of the sixth year, "you shall let (your slave) go free from you . And when you send him away free from you, you shall not let him go away empty-handed, but you shall supply him liberally from your flock." (Deuteronomy 15:12-14) Bankruptcy laws today provide a similar allowance so that people can protect certain property from their creditors.

Marriage and Bankruptcy - Eric Olsen

2010-03-29T11:01:00.001-07:00

Recently, the partners in our law firm were interviewing a candidate for an attorney position. My brother made this point, "You will save more marriages doing this work then any marriage counselor could ever dream." It is true. Debt puts an enormous strain on families and marriages. There are many reasons why marriages break up but debt should never be the reason for divorce. When examined closely marital debt is almost never the result of just one spouse and almost never intentional. In most instances the spouse doing the blaming wasn't involved in the family finances and the other spouse was simply trying to make ends meet in any way possible.

My brother could have also told this attorney applicant, "The advice you give will often result in unmarried couples getting married."

While this may seem strange, it is for logical reasons. Many of our couple clients have been together for many years. They have the same problems. By getting married they can file a bankruptcy together and save money and usually solve some other issues.

I have been the instigator of hundreds of couples getting married over the years. A marriage license can be pretty cheap compared to two bankruptcies. I will never forget sitting next to a familiar looking man at a football game years ago. His face was very familiar but I could not place him. I finally gave up and said, "I know I know you."

He smilingly replied, "You sure do! I'm the guy you told to get married to the same woman for the third time!"

His story came flooding back to me. This man and his ex-wife had four boys, been divorced twice and were back together again. When they came in to see me and I told them they needed to get married for the third time, he literally looked at me cross-eyed!

But they did and I have a feeling they are doing just fine.

Our Talented Clients - Eric Olsen

2010-03-26T14:08:00.001-07:00

A former client was very kind and painted a beautiful rendering of two Canadian Geese for our office. It took me several months for one of my partners to part with it and I just received it. It is beautiful. I plan to hang it in my new office. Anyone who knows me well knows that I have a special affection for Canadian Geese. I used to hunt them when I was much younger. Not anymore. I am lucky enough to watch a large flock of geese land in front of where I live every fall and winter. Geese mate for life and live in family groups. In the spring some of these families hatch goslings.

Whenever you see a flock of geese flying overhead you are looking at family groups including cousins, nephews, grandparents, siblings and the like. When I learned this I just could not hunt them anymore. Mates are loyal to a fault. In 19 years I have seen geese parents lose only one gosling. That is one out of hundreds. Thank you to my client for sharing his talent with this beautiful picture.

Eric Olsen interviewed by Glenn Vaagen- KBNW

2010-03-25T08:50:00.000-07:00

Eric Olsen was interviewed this morning on Glenn Vaagen's "Newsmakers" show on KBNW. Eliminating Second Mortgages and new legislation regulating debt resolution companies were discussed.

Mr. Olsen pointed out that Bend, Oregon has had one of the most dramatic decreases in home values in the nation over the last two years. He discussed how families need to know that there is a process in place to eliminate 2nd mortgages through chapter 13. This allows many families that otherwise would lose them keep their homes. He also directed listeners to the upcoming Home Ownership Preservation Event (H.O.P.E.) this Saturday, March 27 at Central Oregon Community College. His partner Rex Daines will present a workshop at this event on how homes can be saved through bankruptcy and second mortgages eliminated. The link is here.

Home Ownership Preservation Event, Saturday, March 27

2010-03-24T10:04:00.000-07:00

Partner Rex K. Daines will be speaking at the Home Ownership Preservation Event scheduled for Saturday, March 27, 2010 from 9 a.m. to 5 p.m. at Central Oregon Community College, Bend campus, Pioneer Hitchcock Auditorium, located at 2600 N.W. College Way in Bend, Oregon.

Mr. Daines will be a featured presenter discussing stripping second mortgages, voiding judgment liens upon sales and how chapter 13 can stop a foreclosure and allow payments to be caught up. For more information, click on the link here.

The New Salem Office

2010-03-24T09:02:00.000-07:00

The main office in Salem is abuzz as we are fast approaching our move date to a new office. For nearly 30 years our main office has occupied the C.C. Stratton house. Constructed in 1886, this 3500 square foot former governor's mansion has served us well. Around 15 years ago we purchased the house next door - known as the Henry Kropp Dutch colonial home. Our attorneys and staff quickly filled this extra space and now we even occupy part of the Travel Lodge motel next door and a portable trailer between the two houses.

While our State Street space has been very good to us, we knew it was time to look for more space and six months ago we were able to purchase a beautiful office building on the corner of Hagers Grove and Lancaster in Salem. This office has nearly 14,000 square feet. It is new and modern with plenty of room for everyone. The former occupants moved out in January and we are now in the process of remodeling the new office to fit our needs. We are all very excited for the upcoming move in the middle of April!

341(a) Meeting of Creditors - Eric Olsen

2010-03-23T12:50:00.000-07:00

I have attended many thousands of 341(a) meetings over the last 30 years. This is the time when a court appointed trustee has an opportunity to ask questions about the debtor's finances. Most often the hearing is only 3-4 minutes. We have a typical one recorded on our website available for listening.

Once at a hearing in Portland a single mother had an infant that started crying. She unbuttoned her blouse and without anything to cover her began to nurse the baby right in the middle of her hearing as the trustee questioned her.

Now this particular Trustee was the kindest gentleman you could imagine. He was a world war II fighter pilot with several kills to his name. He was always dapper and distinguished.

I was much younger then and my expression must have shown my discomfort. Without looking up from the paperwork, the Trustee continued to ask his questions, but then quietly assured me under his breath, "Don't worry Mr. Olsen, I have seen thousands of them"

"Has anyone died and left you an inheritance?" He continued, completely unperturbed.

The Old Man In the Heat - from Eric Olsen

2010-03-19T09:54:00.000-07:00

Around twenty five-years ago an old man became my client. He had been recently released from the State Mental Hospital where he had been committed for several months. They had moved him out of his apartment and lost all his personal possessions. I am sure he didn't have a lot but it was all he had. Even though his life had been through its ups and downs, he was a good human being and I took a liking to him. His mental issues had resolved. We solved his legal issues but his income was very meager. He rented two rooms in the basement of an old house near downtown.

I don't remember the old man's name but I do remember the cold December day he came to visit me in my office. There was snow falling outside and it was bitterly cold. We talked and I asked him about his apartment. He said everything was fine except that they kept it really cold. I didn't say anything as the heat from the space heater under my desk drifted up between my legs. We concluded our business, I said good bye and saw him walk down the steps. I looked at the snow swirling around him as he made his way down the sidewalk and a clear voice came into my mind. It said, "Eric if you don't give him your space heater right now you will regret it all the days of your life."

I immediately unplugged the space heater and ran down the office steps to catch him before he could meet his bus. I handed him the heater and told him to take it; it was my gift to him.

He was happy to have it and told me, "Oh thank you, Mr. Olsen. God bless you."

Several weeks later, I received a call from a Salem Police officer as I was getting ready for bed.

"Mr. Olsen," he said "do you know _____ (he gave the client's name) ."

"Yes," I replied.

"Well, his landlord called us , he had not seen him around for several days and we went with him to open his apartment. We found that he had passed away and the only information we could find for an acquaintance or relative was your card."

I gave him some information I had about the Old Man's estranged son. We talked for a while and he finally said, "You know Mr. Olsen it was pretty strange. When we opened the door we got blasted out with heat. We walked in and he had a space heater in his room going full blast. I'll tell you one thing, I don't know how he died but I do know he died warm."

Attorneys Who Don't Play By the Rules

2010-03-17T08:47:00.000-07:00

A nice lady came in Monday. She told me she was very scared. Why was she scared, I asked? Because an attorney had called her and told her he was preparing papers to have her thrown in jail. When I asked her what he told her to make her think such a thing, she said, "Here, let me play it for you. He left a message on my cell phone."

I then heard the attorney's message. He told her she had not appeared for a debtor's exam and that, "I am going to my office to prepare papers to have you put in jail..."

This wasn't just a case of a he said/she said - he left it on her voicemail and it is now recorded for all posterity. His message falsely stated the situation. The law does not allow a person to be put in jail for failure to appear at a debtor's exam. After a failure to appear at a contempt hearing which is held after failure to appear at a debtor's exam, a judge can then issue a warrant for willful violation of a court order. But this doesn't happen after failure to appear at a debtor's exam and attorneys DO NOT have the power to issue warrants.

This same attorney also had the temerity to email me insinuating that I had told this woman to not appear at the debtor's exam. He sent this email to me even before I had the chance to communicate with him.

I would never tell a client not to appear at a debtor's exam as the debtor's appearance is ordered by a judge. When I emailed him this information along with the text of his voice mail he responded that he meant that if she did not appear at a contempt hearing she would be arrested.

My response stated, "I don't know what you meant but I know what you said." An attorney is an officer of the court. He has a duty to be careful and not misrepresent the law - especially when making threats to have someone put in jail. I hear stories about lies and misrepresentations from collection agents all the time, but fortunately not as often about about attorneys, especially attorneys foolish enough to have themselves recorded. This was a new one. The poor woman is upset and I am sure this is not the end of it.

Debt Resolution Companies

2010-03-16T14:20:00.000-07:00

The vast majority of these companies are not licensed to do business in Oregon after Jan 1 thanks to our legislature and ORS 697.602. Here is a link to those companies that have qualified under the new law ( A very limited list.) Eventually We hope all states will get smart like Oregon and put in similar legislation to put these scam artists out of business. If we find any of our clients that after January 1, 2010 has entered into a contract with one of these unlicensed bottom feeders, we intend to sue them.

Eric Olsen interviewed by Brian and Dorothy - KUSA

2010-03-15T09:52:00.000-07:00

Managing Partner Eric Olsen was interviewed on the Brian and Dorthy talk show on KUSA on Friday March 12. The interviewed covered the trend of bankruptcy in central Washington, stripping second mortgages and abuse by collectors.