When debt becomes impossible to manage, it can be difficult for a person to find the right means of overcoming it. It is important individuals do not ignore the collection efforts taking place because they will only cause things to become more drastic. When one knows they can no longer handle their mounting debt, it behooves them to seek help from a bankruptcy attorney in Tacoma WA.
Meeting with the bankruptcy attorney in Tacoma WA will allow a person to explore their options for bankruptcy. It is vital a person brings in all of the information on the debts they owe and their assets so the attorney can properly advise them on seeking the most prudent solution for their financial needs. There are two basic types of bankruptcy for individuals to file.
Chapter 7 is a type that is the fastest to settle. When one wants to file for chapter 7, they must pass a means test that compares the applicant’s income to the median income in their state. If the applicant can pass the means test, a trustee is put in place to oversee the bankruptcy process. This type of bankruptcy is typically settled in six months or less. Individuals can have their debts absolved by the trustee, and some filers will be required to liquidate some non-essential property to pay off their debts.
There is also the option of chapter 13 when one is overcome with debt. The process for this type is longer, but it can allow a person to keep their home and other property to prevent them from losing them to foreclosure and repossession. Once this bankruptcy is in effect, all collection activity must immediately cease. Chapter 13 is typically settled in three to five years depending on the amount of debt owed and the applicant’s income.
Those who feel they are drowning in debt no longer have to fear collection activities. With the help of a bankruptcy attorney, one can go over their debts and financial records so the attorney can help them determine the best form of recourse. With bankruptcy, one can overcome their debt and secure a brighter financial future.