In Washington, bankruptcy offers a chance to become debt-free in a short amount of time. Liquidation is the fastest process for settling debts. However, consumers with a larger volume of debts need to consider chapter 13. A local Bankruptcy Attorney In University Place Wa discusses the requirements for bankruptcy based on the chapter chosen.
Exempted Properties and Equity
The attorney reviews the consumer’s assets and determines the exempted value of the items. A general rule of thumb is the lower the equity invested in the assets, the higher the exemption. The exemptions could provide better protection for certain assets when the consumer files for bankruptcy.
How to Meet All Requirements for the Claim
The consumer must meet all requirements for their claim. The attorney explains the requirements and helps the consumer complete each step of the process. The consumer must attend a meeting of creditors, complete credit counseling, and follow through with all payment requirements of chapter 13. The consumer must also use their disposable income to pay any debts that were not included in the claim. The court monitors the consumer throughout the duration of the case.
Are Any Assets Protected in Chapter 7
The only assets that are protected under chapter 7 are the primary home and an automobile. However, if the debts are excessive, the primary home could be sold to settle debts. The consumer should review all terms of their bankruptcy before they agree to the terms. If their home is in jeopardy of foreclosure, a quick sale could help them avoid more detrimental damage to their credit.
Do Consumers Incur Additional Taxes With Wage Garnishment?
Actually, if the consumer opts to have their wages garnished, they pay fewer taxes overall. The wages are deducted before the taxes are applied. The consumer doesn’t incur any additional tax implications for the wages that were deducted.
In Washington, bankruptcy is an effective way to manage a large volume of debts. Chapter 7 involves the sale of key assets to generate proceeds to pay off debts. Chapter 13 involves a new payment plan to pay off the debts over time. Consumers who want to learn more contact a Bankruptcy Attorney In University Place Wa now.