In Washington, bankruptcy is an effective solution for settling debts and avoiding foreclosure and repossession. The chapter selected by the consumer determines what guidelines apply and how the case is completed. All cases require credit counseling courses that prepare the consumer for bankruptcy. A Bankruptcy Lawyer in Tacoma WA provides information about the cases and how they work.
Eligibility Requirements for All Chapters
Currently, the eligibility requirements for chapter 13 is an income that is greater than the median for the claimant’s household. The consumer provides income statements to prove their eligibility. For chapter 7, all assets are reviewed and appraised. The consumer’s assets must equate to a monetary value that is greater than their total debt balance.
Limitations of the Chapters
All consumers who choose chapter 13 bankruptcy are restricted from opening any new lines of credit. They are also required to use all disposable income to pay debts that aren’t included in their claim. The automatic stay for chapter 7 stops after the case is concluded, but it won’t last longer than six months.
What Type of Protection is Offered?
The automatic stay for chapter 13 lasts throughout the entire case, and it will last up to five years. After the consumer files and is approved, they won’t face foreclosure or repossession. The creditors cannot take legal action against the consumer while the automatic stay applies. In chapter 7, any new assets acquired after the case is approved by the court are protected from the liquidation.
Eliminating More Debts
In bankruptcy, consumers can discharge certain debts. The court discharges unsecured credit card debts and personal loans most often. As long as the consumer completes the bankruptcy case, the court discharges the debts. Once they are discharged, the consumer is no longer responsible for the debts.
In Washington, bankruptcy offers a solution for consumers who are swimming in debt and need help. The chapters offer protection against creditors and prevent legal action. The choices for most consumers are liquidation or a new repayment plan. Consumers who want more information about a specific chapter contact a Bankruptcy Lawyer in Tacoma WA and schedule an appointment right now.