Although Tel-Law information is periodically reviewed, it is important for you to realize that changes may occur in this area of law. This information is not intended to be legal advice regarding your particular problem, and it is not intended to replace the work of an attorney.

If you do not have an attorney, the Oregon State Bar Lawyer Referral Service can help you. Online Lawyer Referral Service information and a fill-in form is available. Or you may contact the service by phone: The number to call from the Portland area is 503-684-3763 or toll-free from anywhere else in Oregon, 1-800-452-7636.

The following information regarding alternatives to bankruptcy is brought to you as a public service by the lawyers of the State of Oregon. The material presented is general legal information intended to alert you to possible legal problems and solutions.

Consumer credit counseling is an alternative to bankruptcy, designed to help people who have money problems. It is a counseling service offered by Consumer Credit Counseling Service of Oregon, Incorporated. It is a non-profit service offering free advice about how to get out of debt and how to use credit wisely.

How does it work? If your bills are bigger than your paycheck, contact Consumer Credit Counseling Service for an appointment. There is no charge or obligation. Your counselor will review your financial situation with you and analyze your money problems. Sometimes the free advice is all you need to get your finances in order. But if your debts are so overwhelming that you need continuing help, you may need to enter into a debt-management program.

Assistance will be offered to help you develop a realistic budget, your creditors will be contacted to accept reduced monthly payments to match the new budget, and the Consumer Credit Counseling Service will actually make your payments for you with your money. Of course, you can review your accounts at any time if you use this service. Counseling is free, but if the counseling service handles your payments to creditors under the debt-management program, a small monthly contribution is requested. This contribution may be waived if the counselor finds you cannot afford to pay the contribution because of your program.

Consumer Credit Counseling Service is not a charitable organization. It is operated by a volunteer board of trustees. Members of the board represent broad community interests and diverse business professional specialties. It is funded and maintained by business people, who are teamed with others in the private sector of the community to provide a non-profit source of financial counseling for those with financial difficulties. No government or tax funds are involved.

Consumer Credit Counseling Service has counseling offices in a number of Oregon communities. To contact one, look for its telephone listing in Albany, Bend, Coos Bay, Eugene, Grants Pass, Medford, Portland, Roseburg or Salem.

Please note that there is a procedure available under the bankruptcy laws that could provide some protection to you, your property and anyone co-signing or guaranteeing your loans. It is called a Chapter 13 plan and is filed in the bankruptcy court. This procedure is different from a straight bankruptcy. If you want to know more about the benefits of this plan, read Chapter 13 - Another Type of Bankruptcy.

If you have only a few assets of minimal value; if your income is from unemployment, welfare, or some other type of government benefits; or your wages are low enough, you may be "judgment proof." This means that even if your creditors file suit against you and obtain judgments, they cannot take any of your property or garnish your income. This is because Oregon law provides that certain property and income of a debtor is exempt from the claims of creditors, even if the creditors have obtained judgments. For instance, your automobile cannot be taken if it is worth less than $2,150. Welfare, unemployment and other government benefits cannot be garnished. If you earn net wages of less than $170 per week, your wages cannot be garnished. If you do not have enough money to make partial payments to your creditors, Consumer Credit Counseling Service might not be able to help you. There are a number of factors to consider in deciding whether bankruptcy is an appropriate option. You may wish to consult an attorney before you decide to file for bankruptcy.

Legal Editor: Richard Slottee, Lewis & Clark Legal Clinic, November 2007

This information is from the Oregon State Bar's Tel-law service, a collection of recorded legal information messages prepared by the lawyers of Oregon. In addition to being online, the Tel-law service is accessible by telephone at 503-620-3000 or toll-free in Oregon only, 1-800-452-4776. A touch tone phone allows direct access 24 hours a day, 7 days a week. To receive a free Tel-law brochure listing the subjects available call 503-620-0222, ext. 0.