In Washington, consumers have the opportunity to start a bankruptcy claim to prevent adverse legal actions. If successful, the consumer can avoid foreclosures and repossession of their assets. The chapter also provides them with a new option for settling their debts without any major issues. The following is information about filing for chapter 7 through a Bankruptcy Attorney In Puyallup Wa.
Presenting All Assets
The consumer must provide details about all assets they own. This gives the court a better insight into what assets they could sell the settle the debts. The consumer must surrender all titles and deeds to the court. The court calculates a projected value for these assets to determine how many debts will be paid off after these sales.
Preparing for the Sale of the Assets
The trustee provided by the court places the assets on the market. They manage the sale of all assets and collects the proceeds on behalf of the court and the consumer. The funds are placed in an account and the creditors are paid through these accumulated funds. The trustee distributes the funds to all creditors included in the bankruptcy claim.
Understanding Exempted Value
The exempted value is the value that applies to certain assets during bankruptcy. When a property sells, the trustee must deduct the exempted value and send it to the consumer. This exempted value is based on the assets itself and whether or not the consumer is married. Married claimants can acquire a higher exemption in most cases.
Finalizing the Bankruptcy
The finalization of the bankruptcy occurs once all assets are sold, and creditors are paid off. The judge will discharge the case based on when it is completed. Any debts that were discharged through the claim are no longer the responsibility of the claimant.
In Washington, consumers choose liquidation because it is a faster process. It lasts no longer than six months. At this time, the consumer can become debt-free. The process requires the court to sell their assets and collect the proceeds to pay off debts. Consumers who wish to start the liquidation process contact a Bankruptcy Attorney In Puyallup Wa for more information now.