Eugene (KMTR) - Business is booming for bankruptcy attorneys but they’re not celebrating.
The law offices of Olsen, Olsen and Daines have 14 locations in Oregon. In the last year their business has gone up 300% from about 90 cases last in 2008 to 250 this year.
Attorney Lars Olsen says they'll even refer people to a reputable, non-profit credit counseling agency if that's the better option. He says it's all about empowering people to get control of their finances.
“We’re seeing more business at this point than even we would like. It's really tough out there for people. Between the job losses and the economy and the lack of work a lot of people are looking for answers, so unfortunately we are very busy.” Olsen said.
In basic terms bankruptcy is a legal remedy for people who owe money to get a fresh start. Garnishments, car repossessions and foreclosures can be stopped. Home payments can be restructured. If you have a second mortgage attorneys may be able to reduce or eliminate it. Bankruptcy will stay on your record for seven to ten years and will affect your credit score, which sometimes gets looked at when you’re looking for jobs or trying to rent a home. You can still have a bank account after declaring bankruptcy. The credit card offers will still come in, in fact you'll likely be inundated with high interest, annual fee offers.
There are income and property qualifications you have to meet to declare bankruptcy and a judge has to approve it. So you can't just go out and run up a bunch of credit cards this week and buy a new car and expect it will all get erased.
