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Chapter 7 bankruptcy is the strongest debt relief remedy

In Washington and elsewhere, when the economy is relatively healthy and credit somewhat easy to obtain, people tend to get carried away with credit card charges. Indeed, the pressures of intensive product marketing have a great influence in encouraging people to continually buy consumer products. These societal factors play a key role in keeping unsecured debt burdens skyrocketing among many consumers. It is only after the financial abilities of the consumer to repay become depleted that the creditor takes on a new face, a much more demanding and fearful face. This sets the stage for many persons to select bankruptcy as the best way to resolve the problem and start over. 

When an individual becomes burdened with overwhelming unsecured debt, and is being dunned by multiple creditors, the situation has reached the point of no return. Despite the many debt relief organizations that offer a way out, their entreaties are more in the way of aggressive sales pitches rather than hard facts. Many consumers end up trying debt relief, and after months of struggling under impossible circumstances to make their money stretch far enough, they realize the futility of the effort.

As anyone who has obtained bankruptcy relief knows, the only remedy that compels the creditor to accept immediate and total elimination of the debt is Chapter 7 bankruptcy. Although the concept of Chapter 7 is called liquidation, very rarely is an individual compelled to give up belongings, furnishings or other assets in a bankruptcy. The exemptions provided by state or federal law are sufficient to allow the individual to keep all the basic assets that most people need to live. 

This includes cars, computers, accessories, furniture, clothing, a limited amount of jewelry, all income and retirement savings accounts, including IRAs and 401(k) plans. Where the individual or married couple own a home that is mortgaged, they can choose to keep the home in a Chapter 7 bankruptcy by continuing to make the payments and keep the loan up-to-date. The best way to know one's rights accurately and fully is to obtain a free consultation with an experienced consumer bankruptcy attorney who is familiar with bankruptcy law and procedure in Washington state. 

Source:, "What is Chapter 7 bankruptcy?", Craig Johnson, May 14, 2018

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