Are you drowning in debt and think you might lose your most valued assets? Are you deep in debt but think you can handle payments if adjustments were made for you? If you answered yes to one of these questions, filing for bankruptcy might be right for you. Bankruptcy allows you to be discharged from some of your debts after meeting obligations set up to be completed over a predetermined extension of time. The type of bankruptcy you file for is dependent on your needs and the responsibilities you can meet.
There are two types of bankruptcy most people file for. Liquidation bankruptcy is when you have personal assets you can liquidate to cover a large fraction of your debts. These are assets you feel you can do without and are acceptable expenditures. If the items you liquidate cover most or all of the outstanding debt, your deficits are cleared. If any creditors try to collect discharged debts after liquidation bankruptcy has been carried out to completion, they face hefty penalties.
If giving up most or all of your valued assets puts you in a bad position. Reorganization bankruptcy, also known as Chapter 13, is a better solution. You can keep your property after agreeing to make payments that are feasible to your income over the period of 3 to 5 years. There are a few other benefits within this debt relief plan. One being that a car loan can be reoriented with principal reduction. The reduction goes down to the market value of collateral. Payments are lowered. Other financial responsibilities such as student loans, taxes and mortgages are adjustable. One very appealing advantage is that if you make punctual payments over your 3 to 5 year period, any residual debt is forgiven.
It’s strongly advised that you have a Bankruptcy Attorney in Tacoma WA advocate your claim. The filing process can be confusing. If inadvertent errors are made on your part, it can affect your approval. If some details are inaccurate, there could be certain beneficial features in your plan excluded because of it. A Bankruptcy Attorney in Tacoma WA makes sure your claim is filed without running into obstacles that can slow down the process. You’re much more likely to be successfully approved with conditions of the agreement in your favor when a lawyer represents you.
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