In Washington, consumers consider the benefits of bankruptcy when their debts are too overwhelming. The legal process offers them a more realistic debt solution that can eliminate these debts within a period of six months. They can also prevent seizure of assets when the consumer defaults on a loan. The following is a complete review of Chapter 7 in Tacoma Wa for consumers.
An Assessment of Assets
The attorney assesses the consumer’s assets to determine a total value of proceeds that are possible from their sale. This value is often determined by official appraisals of these assets and a review of a projected market value. It is the final result that determines if liquidation is the most effective strategy for the consumer.
Evaluating the Consumer’s Debts
The consumer’s debts are calculated according to which debts are discharged through bankruptcy. The attorney calculates a total value for these debts and compares it to the value assigned to their debts. This determines if all debts that wouldn’t be discharged could be settled through the liquidation process. If they could, the attorney helps the consumer move forward with their claim.
Selling the Assets and Liquidating the Estate
The court will assign a trustee who works through the local court to begin and complete all sales for these assets. They collect all money from these sales and distributes it based on the liquidation plan set up by the court or the attorney. They return any exempted value for the asset to the consumer.
What to Expect Going Forward
The bankruptcy will remain on the consumer’s credit report for up to ten years. However, the creditors can remove their accounts as soon as they are paid off. The consumer will need to take steps to rebuild their credit and learn how to manage their debts more effectively.
In Washington, chapter 7 or liquidation can help consumers settle their debts in about six months. These claims help them to sell assets and distribute the funds to their creditors. They could become debt-free at the end of their claim. Consumers who want to learn more about filing for Chapter 7 in Tacoma Wa contact an attorney today.
