In Washington, consumers review possible bankruptcy claims based on their current volume of debts. If these debts are overwhelming, bankruptcy could be the most appropriate solution. However, they shouldn’t enter into these cases blindly. They should meet with an attorney first to review their options. The following is a review of all requirements with a Bankruptcy Attorney In Puyallup Wa.
Chapter 7 or 13
Chapter 7 is the liquidation process in which the assets are sold to pay off debts. Chapter 13 is a repayment plan to settle debts over an extended time period. If the consumer doesn’t have a high volume of debts, they could settle them with the liquidation process quickly. If they have a higher than average volume of debt, chapter 13 could provide them a more suitable solution.
Comparing the Financial Benefits of Each Chapter
With chapter 7, the debts are paid off in six months. This presents them with a fast opportunity that won’t affect their finances too severely and gives them time to get back on their feet. Chapter 13 allows up to five years to pay off debts. This could help the consumer to pay smaller values each month for each debt. However, in comparison, chapter 13 locks them into a repayment plan for up to five years, and if they miss a payment they could face a discharge of the entire case.
Meeting the Requirements
The consumer must meet the qualification requirements for each chapter to file. For chapter 13, their income must exceed the average for their household size. For chapter 7, they must possess adequate assets to sell. These requirements are determined by a review of income and a valuation of the consumer’s assets.
The Full Impact of Bankruptcy
The bankruptcy remains on their credit report for up to ten years. This could prevent them from making large purchases such as real estate or new automobiles. They will need to rebuild their credit as well.
In Washington, consumers must assess all possibilities before filing for bankruptcy. They must also attend a credit counseling course to prepare them for the claim. Consumers who need more information contact a Bankruptcy Attorney In Puyallup Wa today.
