In Washington, bankruptcy provides an option for settling debts through liquidation or a new payment plan. The cases help consumers get control of their finances. Once the claimant starts a case, their creditors cannot take legal action against them, and the consumers get a chance to pay debts off without a lawsuit. A Bankruptcy Lawyer in Tacoma WA assists consumers who are having trouble with their finances.
Is Bankruptcy the Most Suitable Choice?
The attorney reviews the claimant’s current financial status and determines if bankruptcy is a suitable choice. For example, if the claimant doesn’t have a lot of debt, the attorney could find solutions through settlement offers. With the offers, the consumer pays off debts without filing for bankruptcy.
Does the Claimant Qualify for Bankruptcy?
Qualifying for bankruptcy is a little tricky for some claimants. If they have an income that is higher than the average for their household size, they qualify for chapter 13. The claimant must have enough assets to pay off their debts to qualify for chapter 13.
What Stipulations Apply to the Cases?
Chapter 13 bankruptcy requires the claimant to refrain from opening any new lines of credit. They must also use their expendable income to pay off debts that aren’t included in their claim. If the claimant doesn’t follow the stipulation, their case ends, and they are no longer protected by the automatic stay. An early discharge of their claim could lead to legal action by their creditors.
What Debts are Discharged Through Bankruptcy?
Typically, unsecured credit card debts are discharged through bankruptcy. The discharge makes the consumer no longer responsible for the debts. However, if they don’t fulfill all the obligations outlined in their claim, the discharge of the debts is overturned. If the debts are overturned, the creditors have the right to seek legal action if they prefer.
In Washington, bankruptcy offers a chance to file for chapter 7 or 13. The guidelines for the chapters define what the consumers must do to settle their debts. Chapter 13 is a repayment plan, and chapter 7 is the liquidation of their assets. Consumers who need more answers about the process are encouraged to contact a Bankruptcy Lawyer in Tacoma WA right now.
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