In Washington, bankruptcy claims provide consumers with an opportunity to pay off their debts quickly. The consumers have the option to file for chapter 13 and restructure their debts. With chapter 7, the consumer liquidates their assets to pay off their debts. A Bankruptcy Lawyer In Puyallup Wa provides assistance for consumers who need to file now.
Eligibility for Bankruptcy
To qualify for chapter 13, the claimant must have an income that is higher than the median household income. The claimant must provide six months worth of income statements or paystubs. The attorney evaluates their income and establishes eligibility. The total annual income is compared to the median for the claimant’s household size.
Common Requirements for Bankruptcy
If the claimant chooses chapter 13, the claimant must pay a monthly payment based on their new structured payment plan. With the claim, the consumer must use all their disposable income to pay off any debts that were not included in their claim. The claimant isn’t allowed to open any new lines of credit until their case is completed. The court can and will monitor their payments and determine if the claimant is compliant with all requirements.
What Happens if the Case is Discharged Early?
Typically, the court won’t discharge the bankruptcy unless the predetermined amount of time has passed or if the consumer violated the terms of their case. If the case is discharged early, the claimant is responsible for all debts included in the claim. The creditors will regain the legal right to sue the consumer.
What Debts are Discharged in Bankruptcy?
Typically, unsecured credit cards are discharged in bankruptcy. Once the debts are discharged, the consumer is no longer responsible for them. The creditor cannot file a claim against the consumer or try to collect any further balances for the account.
In Washington, bankruptcy claims are used to acquire an automatic stay which prevents consumers from facing legal claims. The options help them to liquidate their assets or set up a new payment plan. The court will also discharge some of their debts completely. Consumers who need more answers about bankruptcy contact a Bankruptcy Lawyer In Puyallup Wa now.