In Washington, bankruptcy is a method for getting rid of debt and reduce potential legal repercussions. The chapter selected by the consumer defines what guidelines are applied and what restrictions are imposed. Reviewing what a Bankruptcy Lawyer In Tacoma Wa can do for consumers helps claimants make suitable choices about managing their debts.
Helping Consumers Set Up Settlement Offers
The attorneys negotiate with creditors to charged off debts that are in collections. The settlement offers are often 50% less than the current balance. The offers require either a lump sum payment or monthly installments. Once the payments are submitted, the debt is removed from the consumer’s credit history.
Avoiding Foreclosure When Possible
Foreclosure starts whenever the consumer defaults on their mortgage. Typically, the foreclosure starts after the consumer is 90 days behind on the payments. Bankruptcy helps the consumer avoid foreclosure if it is accepted by the court. It gives the consumer time to catch up on their payments and secure their home.
Preventing Legal Action Against the Consumer
The automatic stay provided through bankruptcy protects the consumer against legal action by their creditors. If the consumer owes a high outstanding balance, then the creditors have the power to file a lawsuit to collect the remaining balance. However, if the consumer files for bankruptcy, then the automatic stay stops a lawsuit dead in its tracks. The consumer is protected until their case is discharged by the judge.
Getting Rid of Debt Quickly
Bankruptcy is an effective way to get rid of debt quickly. Chapter 7 is the liquidation of the consumer’s assets. After the assets are sold, the proceeds go to the creditors directly. The entire process takes about six months to complete, and the consumer could become debt-free completely.
In Washington, bankruptcy is available in a few chapters that offer different benefits. For example, chapter 7 and 13 are used most often by consumers. Chapter 7 is liquidation, and chapter 13 is a new repayment structure. An attorney helps consumers choose the chapter that meets their needs. Consumers who want to meet up with a Bankruptcy Lawyer In Tacoma Wa schedule an appointment and discuss their options today.
