In Washington, bankruptcy claims are filed to manage excessive debts. The claims give consumers the chance to protect their assets against legal claims. The opportunity can prevent foreclosure and repossession of certain assets. When filing, the consumer must choose which chapter is most suitable for their circumstances. A Cheap Bankruptcy Lawyer In Puyallup Wa explain all options associated with filing a claim.
Alternatives to Bankruptcy
If the consumer isn’t sure about filing, the attorney can assess the consumer’s debts. Typically, a loan modification could eliminate late charges and start the payments over. The process could also prevent a foreclosure or repossession.
Settlement offers are also available through some creditors. The offers are about fifty percent less than the total balance of the debt. The attorney could set up the settlement offer based on installments or a lump sum payment.
Chapter 7 Bankruptcy
In chapter 7, the consumer sells certain assets to generate proceeds to pay off debts. The court assigns a trustee to review the assets and set up the sales. The trustee submits all payments to creditors and provides the consumer with the exempted value. The consumer must surrender all deeds and titles to the trustee when the bankruptcy claim starts.
Chapter 13 Bankruptcy
In chapter 13 bankruptcy, a repayment plan is set up, and the court must approve the plan. The consumer is required to pay monthly payments to pay off their debts. The claims last around three to five years and offer a chance to become completely debt-free.
Details About Claims
In chapter 7, the consumer can make purchases and establish new lines of credit after the claim is filed. In chapter 13, the claimant isn’t allowed to start any new lines of credit. Each chapter provides an automatic stay that protects the consumers against a lawsuit filed by creditors.
In Washington, bankruptcy claims are filed to manage debts and protect consumers. The claims are filed according to the requirements of each chapter. The laws require all claimants to attend credit counseling and to pay all applicable fees upfront. Consumers who want to learn more about the claims are encouraged to contact a Cheap Bankruptcy Lawyer In Puyallup Wa right now.
