In Washington, bankruptcy cases are filed to settle debts and protect the consumer’s assets. The laws identify which assets are protected when a claim is filed. The regulations also determine the total value of exemptions available to consumers for each asset. A Bankruptcy Attorney In Tacoma Wa can discuss certain elements of bankruptcy with consumers.
Is Bankruptcy the Correct Choice?
The attorney evaluates the consumer’s current financial status. The assessment determines if bankruptcy is the most suitable choice. In some cases, it is possible for the attorney to acquire settlement offers for certain debts and loan modifications. When those options are possible, the consumer settles their debts without a bankruptcy claim.
Weighing the Benefits of Liquidation and Payment Plans
Consumers who have adequate assets to sell could settle their debts quickly within six months. The option is available through chapter 7 only. However, if they don’t have the assets needed to generate adequate capital, the consumer could establish a new repayment plan through chapter 13.
Discharging Certain Debts Through Bankruptcy
In bankruptcy cases, the judge discharges debts according to applicable laws. The most common debts that are discharged are unsecured credit card debts. The bankruptcy court cannot discharge federal student loans or any government-backed business loans. Once the consumer fulfills all terms of their bankruptcy, the debts are discharged and no longer the consumer’s responsibility. However, if the consumer doesn’t fulfill their obligations, the court discharges the case early at which time the consumer is responsible for all debts.
Marital Status and Its Effects on Bankruptcy
Claimants who file with a spouse could face difficulties if they are divorced before the case is completed. Even if the terms of the divorce explains either party’s responsibilities, there is still a possibility of issues. If the responsible party doesn’t pay bankruptcy payments, the court could seek payments from the other party.
In Washington, bankruptcy cases present several benefits for consumers. The benefits include automatic stays that prevent legal action by creditors and new payment choices that lower monthly payment requirements. A discharge of certain debts is available for specific debts and eliminate the debt entirely. Consumers who want to learn more about bankruptcy are encouraged to contact a Bankruptcy Attorney In Tacoma Wa right now.
