In Washington, bankruptcy provides a clear solution for consumers who are facing overwhelming debt. The cases allow the consumers to reorganize their debts and establish a new payment plan in chapter 13. The claims could also allow the consumer to liquidate assets through chapter 7. A Bankruptcy Lawyer In Puyallup Wa can offer important details about each chapter of bankruptcy.
What to Expect During Credit Counseling?
The state-approved credit counseling program is designed to explain to consumers how they mismanaged their debts. It covers more effective ways to create a budget and manage monthly payments. The consumers also learn techniques for rebuilding their credit after the bankruptcy case is over.
What Consumers Have More Than One Bankruptcy Option?
Consumers who have an income that is greater than the median for their household size have the option to file chapter 13 or 7. The bankruptcy court requires income statements to establish eligibility for chapter 13. If the consumer wants to file for chapter 7 bankruptcy, he or she must provide deeds or titles for their assets. The court conducts an appraisal for the assets and determines the total value for the projected proceeds generated from the sale of the assets.
Are All Debts Included in the Bankruptcy?
Most debts are eligible for inclusion in a bankruptcy case. However, during the meeting of creditors, a creditor can deny inclusion for their account, but it is possible for the judge to overrule the creditor. The consumer can also choose which debts they want to include in their claim.
Who Manages the Bankruptcy Case?
The court manages all bankruptcy cases. However, a court trustee is assigned to manage all sales during chapter 7, and the trustee sends all payments to the creditors. The judge can discharge the bankruptcy case if the consumer doesn’t pay their chapter 13 payments on time.
In Washington, bankruptcy cases are filed to prevent creditors from filing legal claims against consumers. The proceedings also give consumers a better chance of paying off their debts without additional fees. Eligibility requirements for the claims include income levels or the total value of all assets. Consumers who want to learn more about the cases are encouraged to contact a Bankruptcy Lawyer In Puyallup Wa right now.
