A Bankruptcy Attorney In Tacoma Wa can Stop the Financial Struggle

by | Jan 21, 2019 | Law

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When the creditors keep calling and there is no way to pay the bills, it may be time to consult with Bankruptcy Attorney In Tacoma Wa. Finding debt relief through legal means can help to turn around a life that is financially out of control. By seeking legal help for protection against creditors and mounting debt, an individual can find an end to an unrelenting financial burden when all other means have been exhausted.

Bankruptcy

Bankruptcy is the process of going through the court system to find debt relief and to make arrangements to repay creditors. It should be chosen as a last resort, however, it can allow an individual to have a fresh start once the process has been completed. For individuals who file, there are two types of bankruptcy, chapter 7 and chapter 13. Both chapter 7 and 13 can assist with moving past severe financial hardship, but there are major differences between the two types.

Chapter 7

Chapter 7 is the traditional form of bankruptcy. It does not involve making arrangements for repayment of debt, but any assets and property that can be liquidated to pay back creditors will be taken and sold. Once the process has been completed for chapter 7 the individual is released from all previous financial burdens and can immediately begin rebuilding credit.

Chapter 13

Chapter 13 bankruptcy uses restructuring to consolidate and repay all or most of one’s debts. A 3-5 year repayment plan is worked out with the court and the creditors who are owed to make it easier for all parties involved. Monthly payments are made to a bankruptcy trustee who then distributes them to the creditors. Chapter 13 allows individuals to financially reorganize and get back on their feet.

Advantages of Filing

There are advantages to filing for bankruptcy although it may not seem that way at the time. Filing stops creditors from sending threatening letters and making harassing phone calls. It also puts an “automatic stay” into place that keeps creditors from repossessing any property, such as a car, until everything is sorted out by the court. Filing for bankruptcy also prevents creditors from being able to sue once the process has been initiated.

Seeking legal assistance from a Bankruptcy Attorney In Tacoma Wa is the first step in finding debt relief and financial recovery. An attorney can guide an individual through the process and onto a fresh start.

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