In Washington, consumers choose from a variety of debt relief options. Bankruptcy is among these options. A bankruptcy case helps the consumer manage their debts over a designated period of time. This duration of the case depends upon the chapter chosen. Chapter 13 can last up to five years. An Attorney in Tacoma WA helps consumers file for chapter 13 today.
What are the Eligibility Requirements for Chapter 13?
In Tacoma, the median income is $50,439. To qualify for chapter 13 in this areas, the consumer must have income that is greater than this value. They must provide financial records that show their income for the last six months prior to filing their claim. The attorney calculates this value from these records and make a determination. Any income that is lower than the median will qualify the consumer for chapter 7 only.
What are the Requirements for Chapter 13?
The chapter provides a repayment plan created by the court. It is based on the consumer’s income minus their monthly obligations. In addition, they are required to use their disposable income to settle debts that weren’t included in the bankruptcy claim. The court monitors their income and these payments to ensure compliance with the terms of the claim. Deviation from the designated bankruptcy plan could result in a discharge of the case.
What Benefits Does This Chapter Provide?
The major benefit of chapter 13 is the automatic stay. This term allows the prevention of foreclosure and repossession. While the case continues, the creditors cannot use this legal action against the consumer. Additionally, the consume acquires a discharge for some debts as ordered by the judge. They could also receive discounts or settlement offers for select debts. This could reduce the total value of their debts and make them more afforable.
In Washington, consumers find debt relief through bankruptcy claims. These claims could provide them with immediate relief from debt collectors and creditors. This legal action allows them to acquire better management over their debts and pay them off more effectively. Consumers who want to file for chapter 13 should contact an Attorney in Tacoma WA for more information.