In Washington, consumers who need fast debt relief should review chapter 7 bankruptcy. The chapter provides debt settlement through the liquidation process. The consumer must qualify for the chapter based on income and value of assets. An Attorney in Puyallup WA helps them make this determination and begin their case today.
What are the Requirements for Filing?
First, the consumer must participate in credit counseling programs. These programs show them how to manage their debts and restore their credit after bankruptcy. They show the consumer more effective strategies for managing their debts and paying timely payments in the future. The court requires documented proof of completion before the bankruptcy case is filed.
The Sale of Property and Assets
The court appoints a trustee to manage the sale of the consumer’s property and assets. This trustee acquires all incoming proceeds and distributes them to the creditors. The creditor acquires the funds and updates their account as paid in full.
The Exempted Value
The exempted value is assigned when the consumer owes more than they have paid into the account. This value could affect whether or not the consumer receives any funds after the sale. When the equity for their home is higher than what they own, the exempted value is often reduced. The attorney explains the exact exempted value assigned according to state bankruptcy laws.
What are the Major Benefits of This Chapter?
The major benefits of the chapter begin with the automatic stay. It lasts the full duration of the case and prevents foreclosure and repossession by creditors. Additionally, these claims last no more than six months. Once the case has concluded, all debts included are settled. All debts that were discharged by the judge are no longer the responsibility of the consumer as well.
In Washington, consumers who need to settle debts quickly should file for chapter 7. This chapter allows them to settle their debts within six months through liquidation. During this process, a trustee manages the sale of property and assets. These sales allow the consumer to generate proceeds to pay off their creditors. Consumers who wish to file should contact an Attorney in Puyallup WA for more information today.
