The Law Office of Kim Covington Eugene Bankruptcy Attorney | Chapter 7 & 13 Lawyer Corvallis | Springfield Foreclosure Prevention 2026-07-10T15:21:48Z https://www.kimcovington-bankruptcylawyer.com/feed/atom/ WordPress On Behalf of The Law Office of Kim Covington <![CDATA[How much does it cost to raise a child?]]> https://www.kimcovington-bankruptcylawyer.com/?p=51969 2026-07-10T15:21:48Z 2026-07-10T15:21:48Z New parents are often well aware of the costs of initially having a child. Even if they just have to meet their deductible before health insurance will cover those costs, they may still have to pay thousands of dollars. They also need to buy a lot of supplies and equipment around the house, and may even need to make home renovations. But how much does raising a child cost long-term? It goes well beyond those initial expenses. Some studies claim that it costs over $300,000 to raise a child until they turn 18, which is just under $17,000 per year.

Creating stress in a stable budget

What this means is that young parents may suddenly find themselves facing far more expenses than they realized, which can put quite a lot of strain on a budget that may have worked before the child was born. Naturally, there are certain issues that can make raising a child even more expensive. If the child is dealing with a chronic illness, for example, they may have numerous doctor's appointments to attend. If the parents have to work, they have to consider the costs of daycare or childcare. Parents who prioritize a child's education may have to pay tuition, even in elementary school.

What happens when debt feels overwhelming?

Those who have a child unexpectedly could certainly find themselves facing high levels of debt and financial strain. But even those who intentionally had a child and carefully planned and budgeted in advance could still find that it is more expensive than they realized. If you are in this position and your debt has started to feel overwhelming, it may be worth looking into all of your legal options. This could include filing for bankruptcy to eliminate debts or consolidate them into a repayment plan, so it is important to know exactly what options you have.  ]]> On Behalf of The Law Office of Kim Covington <![CDATA[Will a new Oregon law increase medical debt?]]> https://www.kimcovington-bankruptcylawyer.com/?p=51968 2026-06-30T02:46:48Z 2026-06-30T02:46:48Z The beginning of 2026 brought the end of government subsidies that made health insurance significantly more affordable for those who have been able to get health insurance thanks to the Affordable Care Act (ACA). Here in Oregon, that is through the Oregon Health Insurance Marketplace. Now, there’s another concern for many Oregonians. Gov. Tina Kotek recently signed a bill into law that affects many of those who qualify for discounted or free care at nonprofit hospitals.

How has the law changed?

Specifically, the new law limits when these hospitals have to determine whether a patient qualifies for financial aid before billing them. They’re now only required to pre-screen and, if applicable, offer insured patients this financial aid if their visit or stay will cost more than $1,500. That is triple the previous amount. Those patients who are uninsured or on the Oregon Health Plan (OHP), which is the state’s version of Medicaid, will continue not to be billed unless and until it’s determined that they do not qualify for this financial help. The new law stemmed from hospital executives’ complaints about the cost of Oregon’s “presumptive eligibility” law – the first of its kind in the country.  Those in favor of the new law point out that it doesn’t take financial aid away from anyone. It just requires that fewer people be screened before being sent a bill. Patients who receive a bill who believe they qualify for discounted or free care need to complete a Charity Care/Financial Assistance Application.

Why the new law may increase medical debt

Since more responsibility is moved from the hospitals to patients and their families, people are more likely to lose out on benefits to which they’re entitled. They may not receive the application, neglect to complete it or even be too embarrassed to do so. All of this will only worsen the crisis of medical debt, which is a leading cause of bankruptcy throughout the U.S. When people are overwhelmed by medical bills, it can affect their entire life and their ability to afford everyday living expenses. Getting experienced legal guidance can help people determine the best way to overcome medical debt and strategize a clear financial path. ]]> On Behalf of The Law Office of Kim Covington <![CDATA[How your car fits into Chapter 7 bankruptcy]]> https://www.kimcovington-bankruptcylawyer.com/?p=51965 2026-06-25T15:45:32Z 2026-06-25T15:45:32Z Why the car may become a Chapter 7 worry When you consider Chapter 7, one early concern is whether you could lose access to your vehicle. That worry often comes from questions about what you still owe, what the car is worth and how those details may affect the bankruptcy process. Filing Chapter 7 does not automatically mean giving up your vehicle. Oregon law allows you to protect a certain amount of equity in a vehicle through state or federal bankruptcy exemptions. However, ownership details could still affect how the car fits into the bankruptcy review. If you haven’t paid off your car loan, the lender usually has an interest in it. If you have fully paid it, its value may become a larger part of the bankruptcy review. Either situation might make the vehicle an important part of the discussion before the case moves forward.

What life may look like without a vehicle

The possible loss of steady transportation may create practical problems right away. Without it, your commute could take more time. Routine errands such as getting groceries or visiting the doctor may also become more complicated. Those problems often connect to one another. If getting to work becomes harder, household income may become less steady. Your children’s school routines might become more difficult to maintain. Public transit might also not match your commute schedule, especially if you have unconventional work hours.

Reliable travel supports family stability

Chapter 7 may involve legal and financial review, but having a car shows how those choices could affect your family’s day-to-day living. A vehicle may raise questions about value, debt and available protections, yet its daily purpose matters too. The issue is rarely only about a car. It is also about keeping work, school and family responsibilities stable.]]> On Behalf of The Law Office of Kim Covington <![CDATA[More Americans are using credit cards for everyday expenses]]> https://www.kimcovington-bankruptcylawyer.com/?p=51964 2026-06-16T20:48:01Z 2026-06-16T20:48:01Z spending more on everything else, too.” Critics were quick to point out that many people use credit cards to pay for gas and other everyday expenses when they don’t enough money available to cover the cost of them. When credit card bills aren’t paid in full each month, interest accumulates – sometimes accompanied by late fees. These can add significantly to one’s overall cost of living.

A “coping mechanism to make ends meet”

An analyst with the Achieve Center for Consumer Insights says that, "Rising credit card usage does not signal financial strength. For many, it's a coping mechanism to make ends meet. Increasingly, we're seeing Americans rely on revolving debt not for discretionary spending, but to manage the rising cost of everyday necessities." The organization reported this year that over half (53%) of the people it surveyed are using their credit card balances for essential expenses. Some 57% of the consumers surveyed said they anticipated carrying these and other unsecured and short-term debts for at least six months as they struggled to keep up with rising costs. The Achieve analyst notes, "Credit card spending can look strong on the surface, but the underlying question is what consumers are actually putting on those cards. For many households, higher balances are less a sign of economic optimism and more a sign that wages and savings are struggling to keep pace with essential expenses like groceries, utilities and housing." If the money you have coming in isn’t keeping up with your cost of living, you’re likely not in a position to pay off your credit cards balances on the payment due date any more than you were to pay for your purchases when you swiped your card or input your number online weeks earlier. If credit card debt is overwhelming you, it’s smart to look at all of your potential options sooner rather than later. Getting legal guidance can be well worthwhile when it comes to finding a viable way forward.]]> On Behalf of The Law Office of Kim Covington <![CDATA[How Chapter 13 bankruptcy can stop foreclosure on your home]]> https://www.kimcovington-bankruptcylawyer.com/?p=51962 2026-06-16T09:14:50Z 2026-06-16T09:14:50Z The automatic stay When you file for Chapter 13 bankruptcy, federal law immediately activates an automatic stay. This legal protection stops a lender from continuing foreclosure proceedings. This means they cannot contact you regarding the debt. They also cannot take any collection action. This gives you breathing room to reorganize your finances. Oregon courts must honor this federal protection. However, you must continue making your regular mortgage payments after filing and maintain adequate insurance on your home. If you fall behind on these obligations, your lender can petition the court to lift the stay and resume foreclosure.

Creating a repayment plan

Chapter 13 bankruptcy allows you to propose a repayment plan that spans three to five years. This plan lets you catch up on your mortgage arrears through manageable monthly installments. Note that the bankruptcy court must approve your repayment plan. Your plan must show that you have enough income to make both payments. Oregon bankruptcy courts will review your income, expenses and proposed payment schedule. Once approved, you make one monthly payment to a bankruptcy trustee. The trustee then distributes funds to your creditors according to the plan.

Long-term benefits for homeowners

Chapter 13 bankruptcy does more than stop foreclosure. It helps you address other debts that may strain your budget. You can reorganize credit card debt, medical bills and personal loans. This frees up money to keep your mortgage current. Oregon homeowners may also use state exemptions to protect equity in their primary residence during bankruptcy. Completing your repayment plan allows you to emerge with your house intact and a fresh financial start.

Protecting your home against foreclosure

Facing foreclosure does not mean you have lost all hope. Chapter 13 bankruptcy provides a structured path to save your home and regain financial stability. Understanding how Chapter 13 works is the first step toward stopping foreclosure and reclaiming your peace of mind.]]> On Behalf of The Law Office of Kim Covington <![CDATA[Do you still owe on a credit card if you cancel it?]]> https://www.kimcovington-bankruptcylawyer.com/?p=51961 2026-06-04T08:24:01Z 2026-06-04T08:24:01Z Yes, even if you cancel a credit card or close the account, you are still responsible for any charges on that card. For example, perhaps you initially applied for a credit card for convenience. But over time, the high interest rates really began to impact your budget. You may have realized that it was going to be too difficult for you to pay off what you owe, so you decided to cancel the account. While this does stop you from accruing new charges, you are still responsible for anything that has already been charged to the card. Moreover, if you continue to let the balance roll over at the end of the month, interest rates are going to apply, so the amount that you owe could actually increase.

What should you do instead?

It is fine to cancel a credit card, just do not assume that it means you have relieved yourself of that financial obligation. Instead, you need to look at other options to address your debt. One option is bankruptcy. If you file for Chapter 7 bankruptcy, you liquidate non-exempt assets, and the money is used to pay back creditors. If you file for Chapter 13 bankruptcy, your debt is consolidated into a repayment plan, and you then make monthly payments. Exactly which type of bankruptcy works for you will depend on the unique details of your situation. You have to see which type of bankruptcy you qualify for and which will best address your debt. But either way, the key is to remember that you need to be proactive about debt relief options, rather than just canceling the card and trying to ignore the obligation. Take the time to carefully consider all of your legal options.  ]]> On Behalf of The Law Office of Kim Covington <![CDATA[Why health insurance does not always prevent medical debt]]> https://www.kimcovington-bankruptcylawyer.com/?p=51960 2026-05-21T09:59:49Z 2026-05-21T09:59:49Z When you look at some of the top reasons people end up filing for bankruptcy, you will see that medical emergencies are a common issue. Medical debt can be overwhelming. Someone who has an emergency situation and suddenly finds themselves owing $100,000 may feel that they will never have any way to pay it all off, for example. There are those who will say that the way to avoid this problem is just to have health insurance. Then, if there is an emergency, the health insurance company covers the costs. Bankruptcy is not necessary. While health insurance can be helpful, it does not always prevent medical debt or a bankruptcy filing.

Out-of-network services

For one thing, many people still have a high deductible. Even if the medical services are covered, they could owe thousands of dollars before they meet the deductible. But the bigger issue is often when someone receives out-of-network services. The insurance company may refuse to cover the costs if it was not an in-network healthcare provider that they approved in advance. But an emergency naturally means that a person may not be able to choose any healthcare provider they want. Say that someone is on vacation when their child suffers an injury. They may not have any idea which local hospital is in their insurance network, but they are just focused on getting care for their child.

Your bankruptcy options

Have you found yourself considering bankruptcy because of outstanding medical debt? You are certainly not alone, and it is important to know what legal options you have to build a positive financial future.  ]]> On Behalf of The Law Office of Kim Covington <![CDATA[Is credit card avoidance helpful after a personal bankruptcy?]]> https://www.kimcovington-bankruptcylawyer.com/?p=51959 2026-05-06T23:45:40Z 2026-05-06T23:45:40Z Credit card use rebuilds credit Obviously, avoiding the exact situation that led to overwhelming debt is beneficial for those who want to remain in control of their finances. However, credit cards are critical for establishing a competitive credit score. Those applying for larger loans generally need an established history of responsibly using credit. Their payment history and debt-to-income ratio both affect their eligibility for future credit opportunities. For many people, secured credit cards are the first available form of credit after a bankruptcy. Obtaining a secured credit card can help people establish a history of making payments on time after a bankruptcy discharge. The responsible use of a secured credit card after bankruptcy paves the way for better credit opportunities, including vehicle loans, mortgages and unsecured credit cards with better terms. Simply avoiding credit cards is not necessarily the best financial strategy for those rebuilding after a bankruptcy. Learning more about how to effectively use credit cards and how to rebuild credit after a bankruptcy can help people maximize their success during and after a personal bankruptcy filing.]]> On Behalf of The Law Office of Kim Covington <![CDATA[What happens to your tax refund when you file for bankruptcy?]]> https://www.kimcovington-bankruptcylawyer.com/?p=51958 2026-04-30T11:42:01Z 2026-04-30T11:42:01Z Defining exemptions under Oregon law In Oregon, tax refunds are considered money in your bank. They generally remain unprotected unless they fall into specific categories:
  • Earned Income Credit (EIC): If you receive federal or state EIC, it is 100% exempt from bankruptcy.

Spending down your refund the right way

If your refund is larger than the legal exemption, you can spend the money on necessary living expenses before filing for bankruptcy. These include:
  • Household essentials
  • Ongoing medical expenses for your children
  • Rent or mortgage payments
  • Necessary car costs
When spending down, avoid luxury purchases or paying back a loan to a family member. A bankruptcy trustee may see these as preferential payments and sue the family member to get the money back.

Why timing matters in protecting your tax refund

The timing of filing for bankruptcy can make a difference in the status of your tax refund. Finalizing your decision before receiving the refund may cause the trustee to intercept the check. If you file after getting the check and placing it in your bank account, you might be at risk of commingling funds with non-exempt money. If you are unsure what to do, seeking legal advice from a bankruptcy law attorney is the best course of action.]]> On Behalf of The Law Office of Kim Covington <![CDATA[Can filing for bankruptcy affect your employability?]]> https://www.kimcovington-bankruptcylawyer.com/?p=51955 2026-04-23T09:55:07Z 2026-04-23T09:55:07Z There’s a lot of misinformation out there about bankruptcy. Unfortunately, it too often keeps people from using it to deal with overwhelming debt. People often fear, for example, that having a bankruptcy on their credit report will hurt their chances of getting a job in the future because potential employers will see it. Of course, anyone who is seriously considering bankruptcy likely already has a credit report that shows extensive debt and a low credit rating.

Oregon law and credit history access by employers

What’s important to know is that Oregon law generally prohibits the use of a person’s credit history in making employment decisions. It states that except in specified circumstances, “it is an unlawful employment practice for an employer to obtain or use for employment purposes information contained in the credit history of an applicant for employment or an employee, or to refuse to hire, discharge, demote, suspend, retaliate or otherwise discriminate against an applicant or an employee with regard to promotion, compensation or the terms, conditions or privileges of employment based on information in the credit history of the applicant or employee.” Some exceptions under the law include:
  • Law enforcement agencies
  • Federally insured financial institutions
  • Employers required by law to check credit histories
There may be specific exceptions for certain jobs within other organizations if “the information is substantially job-related and the employer’s reasons for the use of such information are disclosed to the employee or prospective employee in writing.” This writing could be in fine print, so it’s important to look for it when applying for a job – whether with a new employer or a current one.

Being prepared to address a bankruptcy can help

Although the law offers these protections for people who are seeking jobs where credit history is not considered relevant, it’s still wise to be prepared to address it if it comes up in a job interview. A bankruptcy, as opposed to continually mounting debt, can show that you recognized the problem (which may have stemmed from overwhelming medical debt, job loss or something that could happen to anyone). Further, you took action to address it, and you learned important lessons. If you’re considering bankruptcy, it’s smart to learn more about it. If that’s the solution that’s best for you, having legal guidance through the process can help you avoid unnecessary mistakes and get back on a strong financial path.  ]]>