There are many issues that can cause a person to get behind on their bills and credit payments. Unfortunately, this often starts the parade of phone calls from creditors demanding money. These collection agents even call people’s workplace to attempt to guilt a person into paying. Sometimes, these calls can even threaten a person’s job. Fortunately, there are methods to help stop the harassment and gain control of one’s finances. A Bankruptcy Attorney In Olympia WA provides assistance with this option.
Debt and Poor Credit
An illness or loss of work is often the cause of a person getting behind on their credit payments. This can add late fees and other charges that can make it harder to get caught up. Once these bills fall behind, it can negatively affect a person’s credit score. This can make it impossible to get further credit to get out of this hole. Poor credit can also make it difficult to find another job or even a place to live. Bankruptcy provides an option for people to gain control of their debt and begin rebuilding their credit.
Chapter 13 Bankruptcy
This type of bankruptcy allows a consumer to reorganize their debt. The individual applies with the court and provides all information about debt and income. This information is examined and an affordable payment plan is reached to help these individuals pay down their debt in a manner that does not cause them further financial hardships. These payment plans are often set up to be completed within three to five years. After this time period, any remaining debt may be discharged.
Chapter 7 Bankruptcy
This type of bankruptcy is for those with little or no income. Similar to Chapter 13 Bankruptcy, all debt, income, and property must be reported to the court. If there is any property of value outside of the home and main vehicle, this property is sold. The funds from any property sold will be used to pay back creditors. Any remaining debt will be discharged at the end of the proceedings. A Bankruptcy Attorney In Olympia WA can assist clients in determining if this option is right for them.
Bankruptcy is a legal process that requires a hearing in front of a judge. This process can be confusing and frustrating for those unfamiliar with the process. An attorney can provide assistance in this filing and ensure it is completed properly and without errors.
