In Washington as elsewhere, two broad categories of bankruptcy filings that are most often used are those for businesses or for consumers. Chapters 7 and 13 are used most often for consumer filings whereas businesses commonly make use of Chapter 7 and Chapter 11. The dichotomy is sometimes described as the difference between a business filing and a personal bankruptcy.
Washington consumer bankruptcy attorneys are the most knowledgeable professionals to consult when one is struggling with overwhelming consumer debt. With experience in handling many common and not-so-common debt problems over the years, they are well-equipped to explain to an individual or married couple their various options. They will explain whether they qualify for relief, how the bankruptcy system works, and other debt relief measures that may be pursued. Obtaining a consultation with an experienced consumer bankruptcy attorney is easy to do, and the meeting is usually offered as a free service.
Washington consumers who are overwhelmed by debt might be exploring the options to get back on track. Many people will try all kinds of quick-fixes rather than filing for bankruptcy. However, most of those only cause further spiraling into debt, while bankruptcy can be a remedy. Gaining knowledge about the two options -- Chapter 7 and Chapter 13 -- may be the first step to regaining financial stability.
Many Washington residents struggle with high levels of debt. For some, the total amount owed comes as something of a shock. Relying on credit cards to get through financial shortfalls, or simply paying the minimum amount owed for many years can result in a staggering volume of credit card debt. Here are some tips for effectively managing that debt load.
There are many reasons why people in Washington and other states file for personal bankruptcy relief. Their debt problem may be due to catastrophic medical debt, unemployment, disability or massive credit card debt caused by divorce and/or any of the foregoing problems. They may also be so overwhelmed with student loan debt that they seek bankruptcy relief to eliminate their unsecured debt and thus free up their budget to make student loan payments.
Bankruptcy in the state of Washington is a remedy that helps individuals and married couples to obtain substantial debt relief from overwhelming unsecured debt. The action has other purposes, as when a Chapter 13 proceeding is used to try and save the filer's residence and/or other property. In order to determine qualifications for filing bankruptcy and the choice of remedies, it is best to obtain a consultation with an experienced consumer bankruptcy attorney. The initial consultation is usually free.
In Washington state and nationwide, student loan debt remains a critical problem to a significant percentage of the population. Debt relief measures, including bankruptcy, have not been effective in alleviating the seriousness of the problem. Bankruptcy at one time was an effective tool in reducing student loan debts for filers, but that relief was all but stopped when the current bankruptcy laws underwent revisions that required "undue hardship" be proved before a student loan could be discharged in a bankruptcy.
Many people in the state of Washington have modest debt loads, and some of them may have difficulties in keeping up with the payments. Those kinds of moderate financial struggles are common, and people usually find a way to stay on top of their financial challenges. For some individuals and families, however, there may be a variety of setbacks that have caused them to have insurmountable debt loads that cannot be handled on their present income. Those persons may find the federal bankruptcy remedy to be a life-saving chance to get back on the road to financial independence.
Many consumers in Washington state are looking at their finances now that the hectic holiday season is over. For some, the toll was steep, and it may have added to an already precarious debt load problem. Those who have a clear overload of debt and cannot pay even all of the minimum payments due on all accounts, must take some kind of debt relief action. According to experts, there are several debt relief paths to resolving such problems.
Residents of Washington state, like those in other states, are experiencing a spike in credit card debt. Balances and the gross amount of debt collectively accumulated are now being compared to what existed in 2007, just before the financial collapse and beginning of the recession. These trends may be signs that the country is headed again for trouble with a glut of unpaid debt, which generally also is evidenced by an increase in bankruptcy filings.