Faced with serious financial problems, many Washington residents will look for relief. That relief may come in the form of a bankruptcy filing. As part of that process, consumers sit down with a bankruptcy attorney and go over the process to determine if bankruptcy is the best option for their needs, and which type of bankruptcy is most advantageous. According to a recently published report, not all consumers receive that level of advice.
Many Washington residents find themselves in financial distress. They turn to the U.S. Bankruptcy Court for help, protection and a chance to start over financially. However, if they file too many Chapter 7 or Chapter 13 bankruptcies and essentially abuse the system, the court could deny them a discharge now or in the future.
Many people in Washington believe that filing for bankruptcy is the end of the world. While there are several ways to reduce one's monthly payments, filing for Chapter 13 may be the best way based upon a person's unique situation. A recent article describes the various ways to consolidate debt.
When many people begin to investigate the different types of bankruptcy protection and debt relief, it can become quickly evident that the options are varied and complex. Depending on a person's unique situation, the best "fit" with regard to debt relief can vary. A recent article describes some ways for those in Washington to evaluate if filing for Chapter 13 bankruptcy is the right option.
In an effort to cut down on potential cases of bankruptcy fraud, individuals seeking bankruptcy relief must effectively prove that they are financially incapable of repaying their debts. This is known as the means test. Unlike school exams that give Washington students either a passing or failing grade, failing the means test is not necessarily a negative outcome, as passing simply means that the filer is eligible for Chapter 7 bankruptcy.
Taking out a loan, purchasing a vehicle or borrowing money for school usually requires a certain credit score before a borrower can sign on. Banks and other financial institutions often allow people without adequate credit to still secure these types of loans by having a co-signer. Parents and even grandparents in Washington tend to step up to the plate when a family member needs an extra signature in order to get a loan, but this practice has some heading towards bankruptcy.
As Washington readers know, some financial struggles develop over time, while other spring up seemingly overnight. No matter the nature of your financial difficulties, when savings have been depleted and bills amount to more than you make in a month, you may feel that you are out of viable options. Fortunately, there are legal options available to you, including the option of Chapter 13 bankruptcy.
Have you ever thought "If I could just catch a break on these few different bills, I could get caught up?" This thought process might be more common than you think, and there is a legal course of action that can help that thought come to life. When the debt, monthly payments and constant phone calls interfere with a person's honest yearning to simply pay bills, Chapter 13 bankruptcy can be a viable option.
Personal bankruptcies are generally achieved through two types of filings: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is a liquidation bankruptcy, while a Chapter 13 bankruptcy is a reorganizational bankruptcy. Regardless of the type for which a Washington resident files, debts that are discharged when the bankruptcy is finalized become unenforceable for creditors.
Chapter 7 bankruptcy is undergoing a significant change following a ruling from the United States Supreme Court. The decision followed a case involving the prominent lender, Bank of America, and is believed to benefit lenders and those who are in debt. While news of this change might be less than pleasant, it only affects second liens of underwater properties, making Chapter 7 bankruptcy still a viable and appropriate option for Washington debtors who are unable to pay.