In Washington, bankruptcy provides a clear answer for managing debts. The chapter selected by the consumer depends on eligibility and the benefits that are available to the individuals involved. The claims could protect them against potential lawsuits if creditors start a legal claim. A Bankruptcy Attorney In University Place WA helps consumers make choices about bankruptcy filings.
What is Disposable Income?
Disposable income is any leftover balance after all monthly obligations are paid. The court calculates the disposable income by deducting the monthly bankruptcy payment and all monthly expenses from the filer’s monthly income. In chapter 13 bankruptcy, the filer must use the leftover funds to pay any debts that were not included in the bankruptcy claim.
What is the Major Difference Between Chapter 13 and 7?
Chapter 13 bankruptcy provides a repayment plan that is followed for up to five years. The filer must pay payments each month according to the schedule set up for them. In chapter 7 bankruptcy, the filer’s assets are sold to pay off debts through liquidation.
What Assets are Safe in Bankruptcy?
Exempted assets are safe in chapter 13 and 7. Exempted assets such as the primary home or first automobile are safe in bankruptcy. Any assets that are purchased after the bankruptcy filing starts in chapter 7 are also protected from the court. The exempted values could also present a consumer with additional funds through the liquidation process. The attorney can explain which assets are exempted and how much of an exemption is provided.
How Long Does Bankruptcy Last?
Chapter 13 lasts between three and five years in most cases. The volume of debt could determine how long the case lasts. With chapter 7, the case is processed and completed within a six month period.
In Washington, bankruptcy filings offer an automatic stay to protect consumers from creditors. The automatic stay lasts throughout the entire case. The chosen chapter defines all guidelines and prerequisites that must be completed by the consumer. A local attorney could help the filer determine which chapter is most suitable for their needs. Consumers who want to review their options can contact a Bankruptcy Attorney In University Place WA right now.