In Washington, bankruptcy provides a way to eliminate debts quickly and without major losses. The court provides several chapters to meet the needs of consumers and businesses. Reviewing details to talk to a Bankruptcy Attorney In Tacoma Wa about helps claimants make the most suitable choice for them.
What are the Common Eligibility Requirements?
The eligibility requirements for chapter 13 are income-based. The consumer provides income statements for six months. The attorney calculates the consumer’s annual income to establish eligibility. The income must exceed the median income for the consumer’s household. On the other hand, in chapter 7, the appraised value for all assets must exceed the total debt.
What Restrictions are Imposed Through Bankruptcy?
Chapter 13 restricts any new lines of credit and prevent the consumer from buying more assets through a line of credit. The consumer uses all disposable income to pay off their debts. The court monitors the consumer and ensures total compliance with bankruptcy guidelines.
In chapter 7, the consumer doesn’t choose what assets are sold. Once the claim starts, the consumer provides deeds and titles for all assets to the court. A trustee chooses the assets and sets up their sales.
When are New Assets Protected?
In chapter 7, new assets are protected after the claim starts. The consumers don’t face restrictions for new lines of credit in the chapter. If they purchase new assets, the assets are protected from court seizure.
What Repercussions Apply to Bankruptcy Claims?
If the consumer doesn’t comply with all guidelines of the bankruptcy, then the judge discharges the bankruptcy early. If this happens, then the consumer is responsible immediately for all debts. Any debts that would’ve been discharged are reinstated. The automatic stay is lifted, and creditors regain the option to file a lawsuit.
In Washington, bankruptcy claims help consumers manage their debt more effectively. First, the attorney helps them establish eligibility. Next, the claim is filed according to the chapter guidelines. The automatic stay takes effect once the claim is approved by the court. Consumers who want to review their options more fully contact a Bankruptcy Attorney In Tacoma Wa and schedule an appointment right now.
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