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Being in financial trouble can be so stressful, you stop thinking clearly. If you are unemployed or are facing a reduction in income, you may spend too much on a credit card with the belief that things will turn around soon. Once a pile of debt gets too big, it may not seem like a big deal to throw a little more on the pile. You may lose sight of just how difficult it will be to pay the debt back. You may be completely aware of how difficult repayment and realize that it is basically impossible. This realization can lead to panic and bad decisions. Why let this happen to you? If you're in this type of financial crisis, contact a Tacoma bankruptcy attorney as soon as possible.
A Tacoma bankruptcy attorney can educate you on your options.
If you think you are in this situation, you should contact a skilled Tacoma bankruptcy attorney from our law firm to educate yourself about your options. Most people think of bankruptcy as utter ruin. In reality, bankruptcy is a way of avoiding complete ruin. Most people who file bankruptcy in Tacoma do not lose any property at all. They are able to keep 100% of their retirement plan, their home and their car. Most people are able to keep all their property. An experienced bankruptcy attorney in your corner can make all the difference!
Speak with a bankruptcy lawyer in Tacoma, WA from our firm today about achieving a fresh financial start.
The purpose of bankruptcy is to give you a fresh financial start – to put you back on track so you can remain a productive worker and active consumer. It allows you to keep important property so you have a chance at turning your affairs around. It lets creditors know that you are not able to pay them or, if you can pay them something, it divides the money up among your creditors equally. It can be a huge mistake to cash in a retirement plan or take out a loan on your house to pay just part of your debt. Often that just puts the problem off for another day.
As soon as you file a bankruptcy all debt collection stops. Creditors are prohibited from continuing or filing a law suit, calling you, putting a lien on your property, garnishing your wages or cutting off your utilities. Foreclosures and repossessions stop dead in their tracks. Almost every attempt to collect a debt is prohibited the second you file your case.
At the end of your bankruptcy, you get a discharge. The discharge is a federal court order that wipes out your debt for good. Most debt can be discharged though there are some exceptions, such as student loans, some back taxes, fines and domestic support obligations like child support and alimony.
There are two kinds of bankruptcy: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, the way creditors get paid through bankruptcy is by selling your property and dividing the proceeds up among the creditors. Most people who file Chapter 7s do not lose any property. In a Chapter 13 bankruptcy, you make monthly payments in to a plan. The bankruptcy plan determines how the payments are divided among creditors. A knowledgeable Tacoma bankruptcy attorney can help you in determining which will best meet your goals.
Both kinds of bankruptcy start with filing a petition with documents detailing your income, your expenses, your property and your debt. A trustee is assigned. A Chapter 7 trustee goes over your case to see if there is any property that can be used to pay debts. A Chapter 13 trustee receives payments made monthly by you and disburses them to your creditors following a 3-5 year plan.
A Tacoma Chapter 7 bankruptcy is cheaper and easier than a Chapter 13 bankruptcy. The whole case usually only lasts about three months. You usually only have to attend one hearing called a meeting of creditors. The hearing is conducted by the trustee who goes over your bankruptcy papers and takes your sworn testimony to verify what you filed.
In some cases the trustee will want some follow up information after your hearing and may even sell some property to pay creditors. In most cases everything wraps up without any more contact with the trustee this brief hearing that lasts about five minutes. You can be assured that if you decide to retain a Tacoma Chapter 7 bankruptcy attorney from our team, your attorney will be with you throughout the entire process.
Keep your property and possessions with bankruptcy protection - talk to an attorney now!
Because a Chapter 7 is fairly easy and usually results in no loss of property, you have to show that your income is not high enough to pay your debts. You have to fill out a means test, which looks at the average of your last six months of income and deducts expenses from it. Some expenses are real, such as your taxes, day care, mortgage payment and health insurance. Some are set by IRS regulations, such as food, clothes, rent and transportation. If there is any money left in the means test after subtracting these expenses, your case could be dismissed or converted to Chapter 13.
A Chapter 13 is for higher income people. It can also be used to catch up on a mortgage or car loan while consolidating the rest of your debt. If you purchased a car over two and a half years ago or refinanced it, you can can also pay back taxes and domestic support obligations.
You can also protect property that might be sold in a Chapter 7 for your creditors. You pay unsecured debt, such as credit cards, medical bills, signature loans and pay day loans at a rate that is anywhere from 0% to 100% depending on what you can afford. Though many people would prefer the easier Chapter 7 option, there are times when a Chapter 13 is best because it can accomplish more things. If you are unsure of which bankruptcy option is right for you, please contact a Tacoma Chapter 13 bankruptcy attorney from our firm today to help answer your questions.
Affordable, low flat attorney fees.
With our low flat fees and flexible payment plans, hiring an attorney from our firm makes it as easy as possible for those seeking to ge a new start. A Tacoma bankruptcy allows you to:
Contact a Tacoma bankruptcy attorney on our team today for your initial free consultation!
Don't live in fear of your phone ringing anymore. Contact a Tacoma bankruptcy attorney from our experienced team today for a free consultation!
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