In Washington, consumers who want to file for bankruptcy are required to complete a state-approved credit counseling course first. The prerequisite requires a certificate to prove that the consumer completed the course completely, and it was approved by the state’s bankruptcy courts. A Chapter 7 Bankruptcy Attorney in Tacoma WA provides advice about filing for liquidation.
Release Deeds and Titles to the Court
The consumer is required to release all deeds and titles for the assets to the bankruptcy court. The court decides what assets are sold through the liquidation. Essentially, the primary home is protected through a homestead exemption, but any other real properties are sold. The court might allow the consumer to keep one automobile, but if they own more than one, the court is likely to sell the additional vehicles.
Coordinate the Sale of the Assets
A trustee is assigned to the case and manages and coordinates all sales. Some sales are direct while others are completed through an auction. All proceeds are distributed to the creditors to settle the debts. Any exempted value is returned to the consumer according to bankruptcy laws.
Access to New Lines of Credit
The consumer has access to a new line of credit after the chapter 7 bankruptcy is filed. Any new assets accumulated after the case is approved by the court are protected against the liquidation process. The consumer isn’t penalized for starting new lines of credit and purchasing new assets.
Gain a Fresh Start
After the three-to-six-months period, the consumer gets a fresh start and is debt-free in most cases. The attorney provides the consumer with advice about how to start over after bankruptcy. The case remains on their credit history for up to ten years.
In Washington, consumers file for chapter 7 bankruptcy when they have enough assets to sell and pay off their debts. The liquidation process takes up to six months to complete and offers a fresh start for consumers. The bankruptcy court assigns a trustee who sells the assets and sends proceeds to the creditors. Consumers who want to learn more about the cases contact a Chapter 7 Bankruptcy Attorney in Tacoma WA right now.
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