Mounting Debt Is Easier to Overcome With the Help of a Bankruptcy Attorney In Tacoma, WA

by | Dec 21, 2016 | Lawyers

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Mounting debt can occur because of poor financial decisions, unexpected job losses, or serious illnesses. Unfortunately, many individuals mistakenly believe they can simply ignore their debt and it will go away. Ignoring debt only makes the problem worse and can lead to serious repercussions, including the loss of a home or property. It is vital debtors face their debt head-on so it can be taken care of as soon as possible. When debt becomes unmanageable, it behooves a person to seek help from a Bankruptcy Attorney In Tacoma Wa.

Individuals living in the state of Washington have two main options when it comes to settling their debt with bankruptcy. Chapter 7 bankruptcy is often referred to as the fresh-start option because it wipes out a person’s debt in as few as six months, allowing them to start rebuilding their financial reputation. This is an ideal option for those with primarily unsecured debts. Any non-exempt assets that are owned by the individual will be liquidated by a trustee appointed by the court. This amount will then be used to pay off any debts owed. Individuals can choose to keep their home and car by reaffirming those debts.

There is also the option of chapter 13, which is preferred when a person has mostly secured debts. This bankruptcy is especially beneficial for those who are about to lose their home or other assets. Under this bankruptcy, a debtor proposes a repayment plan that stretches out over three to five years. If the judge approves this plan, it will be enforced by the court and must be adhered to. During the bankruptcy period, all creditors must cease any collection attempts. This means debtors are no longer under the threat of foreclosure or repossession.

Both bankruptcies can be beneficial depending on a person’s financial situation. Meeting with a Bankruptcy Attorney In Tacoma Wa will allow individuals to better understand what they can expect and which type will be most beneficial for their financial needs. It is important debtors do not wait to seek help because their debt will only continue to mount and they could end up losing their property. Call today for an appointment.