When it’s no longer feasible to pay your bills on time, creditors are harassing you on the telephone, and your house is in foreclosure, you might be wondering if you should contact a Bankruptcy Attorney In Puyallup Wa. The answer to this question is that it would be wise to speak with them about financial options that are available to you to eliminate this debt.
Excessive debt can easily accumulate no matter what income bracket an individual falls into. A death, divorce, loss of a job, illness, injury, or any other unforeseen circumstance can cause a financial crisis in a person’s life. In certain situations, an individual might have spent beyond their means and cannot pay off the debt.
Legal Option
Bankruptcy is a legal option through the federal government to eliminate debt and gain financial freedom. The financial situation an individual is in will determine the type of bankruptcy, they’re allowed to file. Individuals who have a lot of unsecured debt or a limited amount of income could be eligible to file Chapter 7 bankruptcy.
If an individual has a source of income and assets they want to keep, Chapter 13 bankruptcy would be a better option. No matter what type of bankruptcy an individual is eligible for, they will have to attend a credit counseling session within six months before filing bankruptcy.
Debts Not Eliminated
There are certain debts that cannot be eliminated by filing bankruptcy. Back child support, alimony, and certain taxes will have to be paid. All expenses an individual has should be thoroughly discussed with a Bankruptcy Attorney In Puyallup Wa.
Chapter 7
This type of bankruptcy is considered a complete liquidation. A trustee will be appointed to sell any assets an individual owns that are not exempt from the bankruptcy. An individual has the option of utilizing the state or federal exemptions.
Chapter 13
Chapter 13 will allow someone to keep many of their assets and restructure their debt. This type of bankruptcy requires payments to be deducted from an individual’s paycheck over a period of time to pay off creditors at a reduced rate. After the payments are complete, the bankruptcy will be discharged and the individual will no longer owe any money to their creditors.
