In Washington, consumers have a variety of options to help them eliminate their debts. These options include two chapters of bankruptcy. The chapters allow them to eliminate debts based on a restructured payment plan or through liquidation. The following are frequently asked questions that a Bankruptcy Lawyer In Tacoma Wa can answer.
What is the Income Requirement for Chapter 13?
The consumer must possess an income of more than $51,269 to qualify for chapter 13. They must bring income statements, tax returns, or pay stubs to show their income for the six months prior to filing a claim. The attorney reviews these documents to determine the claimant’s annual income. This calculation determines if they can use chapter 13 or if they are restricted to chapter 7 only.
Are Claimants Restricted to a Certain Asset Type?
No, they can use any assets through chapter 7 to acquire funds to pay off their creditors. This can include vacation homes or primary residents. They can sell jewelry, artwork, and antiques to accumulate the necessary funds to pay off the debts. However, these assets must generate enough money to pay the debts off entirely.
When Do Consumers Receive the Exempted Value Applied to Assets?
Typically, the receive this value at the end of the claim. However, in some cases, they could apply it to other debts to settle them quickly. The exempted value is based on the type of asset and the total number of claimants on the claim.
Are There Restrictions for Additional Income?
Yes, any disposable income that isn’t used to pay monthly expenses must be used to settle debts. These debts aren’t included in the claim and must be managed separately. The court can monitor the income of the claimant to ensure compliance with these laws.
In Washington, consumers have access to debt relief solutions through bankruptcy. These opportunities allow them to pay a lower value each month and find a more affordable solution. They have access to chapter 7 and 13 for these purposes. They also offer an automatic stay to prevent legal action by creditors. Consumers who want to file a bankruptcy claim contact a Bankruptcy Lawyer In Tacoma Wa today.