In Washington, bankruptcy claims help consumers get rid of debts through a new repayment plan or liquidation. Consumers who are facing a high volume of debt can eliminate their debts by starting a bankruptcy case. A Bankruptcy Lawyer In Tacoma Wa can explain the expectations of the court.
Certain Prerequisites for Bankruptcy
All claimants who want to file for bankruptcy must attend a credit-counseling course. The program shows the consumers where they went wrong when managing their debts. It shows them how to set up budgets and pay their payments on time. It also includes details about rebuilding their credit after the bankruptcy is over.
Reviewing Repayment Plan Choices
Chapter 13 bankruptcy requires the consumer to start a new repayment plan. It breaks the debts down into one monthly payment. The funds are divided among the creditors until the balance is paid off. All debts that were included in the bankruptcy claim are added to the payment.
Evaluating Assets for Liquidation
The court evaluates the consumer’s assets for liquidation. The consumer doesn’t decide which assets are sold through chapter 7 bankruptcy. Typically, the primary home of the consumer is protected through exemptions. However, vacation homes and additional automobiles beyond the first vehicle owned by the consumer are sold in most cases. The exempted value of the asset is based on the equity the consumer builds up over time.
Managing Additional Debts
In Chapter 13, the consumer is required to pay for any debts that weren’t included in the bankruptcy. The expendable income of the consumer is used for the purposes. The value of the expendable income is calculated by deducting the total monthly obligations and the bankruptcy payment from the claimant’s income. The terms of the bankruptcy define the exact requirements for the consumer.
In Washington, bankruptcy requires the consumer to attend credit-counseling and to follow specific guidelines. The cases require the consumer to follow a repayment plan or liquidate their assets. The terms of the claim may also outline requirements for paying off additional debts that weren’t included in the bankruptcy. Consumers who want to learn more about the claims are encouraged to contact a Bankruptcy Lawyer In Tacoma Wa right now.
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