In Washington, consumers who mismanage their debts could face serious ramifications. While this doesn’t imply that they are irresponsible, it could indicate that life changes have lead to unfortunate circumstances. A chapter 13 bankruptcy can stop these consumers from drowning in debt. The following is a review of chapter 13 with a Bankruptcy Lawyer In Puyallup WA.
Credit Counseling Prerequisite
The state of Washington upholds the federal prerequisite for attending a credit counseling course prior to the start of a bankruptcy claim. During the course, the consumer discovers how they mismanaged their debts and accounts. They learn how to manage the more effectively in the future. They also learn strategies for rebuilding their credit after bankruptcy.
Assessment of Debts and Possible Plans
The attorney reviews the consumer’s debts. The attorney contacts the consumer’s creditors to determine if a settlement offer is possible. For some consumers, these efforts could help them avoid a bankruptcy altogether. However, for most, it will equate to a smaller balance that is included in the bankruptcy. Through the overall assessment of these debts, the attorney can determine what debts are likely to be discharged by the judge.
The Meeting of Creditors
The meeting of creditors is necessary for all bankruptcy cases. This gives the creditors a chance to determine if they want their accounts added to the bankruptcy. They can approve or deny this action. If the debt isn’t included in the claim, the consumer remains responsible for it and must pay it according to the guidelines provided by the creditor.
The Requirements of This Chapter
According to the requirements of this chapter, the consumer submits monthly payments to the court. They cannot acquire new lines of credit. They must also use all disposable income to pay off debts that weren’t included in the claim.
In Washington, consumers who face financial difficulties could acquire a chapter 13 bankruptcy claim. These claims require them to gain court approval as well as acceptance from their creditors. The repayment plan lasts up to five years. Consumers with a high volume of debt contact a Bankruptcy Lawyer In Puyallup Wa to schedule an appointment today.