A time may come in the life of individuals where they may have to file bankruptcy to get relief from the overwhelming stresses of debt. When that time comes, there are generally two types of bankruptcies that can be filed: Chapter 7 and Chapter 13, both contingent upon a “means test.” A Bankruptcy Attorney In Tacoma Wa advises and represents those clients who have been overcome by financial woes and are in need of bankruptcy. Here are some things to know about the two types of bankruptcies in Washington.
Understanding Chapter 7 Bankruptcy in Washington
The Chapter 7 bankruptcy is an opportunity for the debtor to wipe out all unsecured debts and get the chance to start over with the finances. A trustee is appointed to collect all of the assets that are not exempted, sell them and distribute the liquidated funds to the creditors, according to what is remaining. The debtor will not be able to wipe out some debts, such as alimony payments, student loans, and child support. Certain assets may be kept, such as the home and the car, but must be brought up to the status of current payment.
Understanding Chapter 13 Bankruptcy in Washington
The Chapter 13 bankruptcy is a reorganization of a debtor’s debts for repayment over a three to five-year plan. This works out pretty good for the debtor as the payments are based upon the debtor’s disposable income, determined by a means test done in Washington. The Chapter 13 can only be utilized if the debtor has a regular income, and has disposable income to be used for the repayment of the debts. Discussing all of these options with a bankruptcy attorney will reveal what can be done.
A Bankruptcy Attorney in Tacoma, Washington
When searching for a bankruptcy lawyer in Washington, the would-be client should look for one that has a proven track record in helping clients be successful. Rafal Gorski, Attorney at Law is an attorney in the Tacoma, Washington area who helps clients with bankruptcy issues. If a person is looking for a Bankruptcy Attorney In Tacoma Wa, the attorney is available and can be reached at the website.
