In Washington, consumers acquire assistance for large volumes of debt through a bankruptcy claim. A bankruptcy claim helps them settle debts based on the chapter they select. The purpose of these claims is to achieve debt relief by preventing legal action by creditors. The following are details about how a Bankruptcy Attorney In Puyallup Wa can help consumers through these claims.
Qualifying for Bankruptcy and Prerequisites
The attorney reviews the consumer’s income statements to determine if they qualify for bankruptcy. They must meet all income restrictions through these statements based on the county median. The median income for this area is $47,269. If the consumer’s income isn’t higher than this average, they cannot qualify for chapter 13 bankruptcy. However, they qualify for chapter 7. Additionally, once they are qualified for a bankruptcy chapter, they must complete credit counseling programs.
Choosing the Most Suitable Chapter
Chapter 7 provides consumers an option for settling debt through liquidation. This process requires the consumer to sell assets to accumulate money to settle the debts. These funds are distributed by a trustee assigned to the case.
Chapter 13 provides a repayment plan. This includes monthly payments that are submitted to the court. The funds are distributed to creditors according to the plan approved by the court. All debts included in the claim are managed through this monthly payment. The consumer must use all disposable income for debts that aren’t included in the bankruptcy claim.
What are the Benefits of Bankruptcy?
The chapters prevent legal action against the consumer. They acquire an automatic stay through these chapters. It prevents creditors from filing legal claims including the foreclosure process. This allows consumers to remain in their home throughout the bankruptcy case. It can also prevent extensive damage to their credit.
In Washington, consumers acquire help through bankruptcy when facing extensive debts. These chapters help them to set up measures to pay off the debts. In chapter 13, the consumers pay off the debts between three to five years. In chapter 7, the liquidation process is used to settle the debts. Consumers who need this level of assistance contact a Bankruptcy Attorney In Puyallup Wa today.