Mounting debt with harassing collection calls and the stress of possibly losing a home or car can be alleviated with the help of a Bankruptcy Attorney In Tacoma Wa. There are several steps someone must take before bankruptcy can be filed. Discussing alternatives and the legal process with an attorney will eliminate questions someone has. Credit counseling must be completed within six months before bankruptcy is filed. A complete financial management instructional course after filing bankruptcy must also be completed.
A mean’s test will be conducted to determine someone’s income and expenses. This will determine if someone is eligible to for a Chapter 7 or Chapter 13 bankruptcy. The court will look at someone’s average income for the last six months before filing and compare it to Washington’s median income. If someone’s income is below the median income, they can choose to file Chapter 7. If their income is above the median income, additional portions of the means test will be used to determine of someone must file Chapter 7 or Chapter 13.
Chapter 7 is a complete liquidation of assets that are not excluded through Washington exemptions. A trustee will be appointed to liquidate the assets and pay the creditors. Chapter 13 allows someone to keep their assets. A repayment plan must be submitted to the bankruptcy court. Depending on the amount and type of debt, unsecured debts can usually be paid off for a very little amount each month. Repayment plans take between three and five years. These payments are usually withdrawn directly from someone’s paycheck.
Once bankruptcy has been filed an automatic stay goes into effect. This prohibits creditors from contacting you anymore. Shortly after your bankruptcy is filed, there will be a meeting of the creditors for any objections to be voiced about the bankruptcy. A Bankruptcy Attorney In Tacoma Wa can educate you on what to expect during this meeting. Bankruptcy can give you the financial freedom needed. Excessive debt can happen because of illness, injury, job loss, divorce and much more. It’s nothing to be ashamed of because it can happen to anymore. Contact a bankruptcy attorney in Tacoma Wa to find the answers you need to stop the harassing phone calls.