A Chapter 7 Bankruptcy Attorney in Tacoma WA helps clients who have no other way to deal with their overwhelming debt. They cannot afford to pay it back in a Chapter 13 bankruptcy program, and other possible repayment arrangements are also out of reach. Chapter 7 uses some of the assets that are left to pay creditors and then discharges the other amounts.
For people who are better able to make other payment arrangements, possible options include debt consolidation loans, debt settlement or Chapter 13.
Debt Consolidation Loans
Debt consolidation loans are available, although many of them have steep interest rates that can leave the individual in worse financial shape than before. The best ones may not be offered to men and women with poor credit or an income too low to comfortably make a consolidated payment each month.
Debt settlement is an agreement between a consumer and a creditor involving paying back a certain amount of the money owed, while the rest is discharged. Usually the payment must be made in one lump sum, although some creditors allow two or three separate payments. It can be very difficult for the consumer to come up with all that cash if he or she is struggling financially. In addition, often the individual owes a significant amount of money to more than one creditor and is behind on each account.
A Chapter 7 Bankruptcy Attorney in Tacoma WA provides an alternative to these options. A lawyer such as Kevin G. Byrd offers representation for both Chapter 7 and 13, as well as other types of bankruptcy filing. This is advantageous because the attorney can provide legal counsel on which options are most suitable and reasonable for the client’s particular situation.
This lawyer can explain changes made to bankruptcy laws in 2005 that made it somewhat more difficult to file for Chapter 7, since some individuals who should not have been filing were doing so. One example is people running up debt again and having to file a second time. In addition, restrictions for income levels were set because high-income men and women were taking advantage of the system.
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