The assistance of a Bankruptcy Attorney In Tacoma Wa can seem almost like magic to a person who has been dealing with overwhelming debt. Typically, people struggle with their financial situation for years before deciding to file for bankruptcy, always believing they can somehow fix this enormous problem on their own. When they finally ask a lawyer to help them file for Chapter 13, a sense of relief and peacefulness can arrive. The continuous collection calls stop. The person sees a possible bright future.
Repayment Plan
There are important factors to consider, however, as bankruptcy filing is not actually a magic wand. Filing for Chapter 13 with the assistance of a lawyer such as Rafal Gorski, Attorney at Law, involves developing a repayment plan that will fulfill the person’s entire outstanding obligation to all creditors, or nearly so.
Potential Problem
A potential problem that must be addressed is accepting the financial difficulty the individual has been unable to manage. The repayment plan is intended to be affordable because it reduces the total amount being demanded each month, but it can still make the person’s budget extremely tight. Many individuals begin the program with the best of intentions, only to be caught short if an unexpected financial emergency occurs.
Default Rate
The default rate for Chapter 13 bankruptcies is high, at around 50 percent. This knowledge is not supposed to deter someone from filing, but rather to look at the situation completely realistically and devise a plan for potential problems.
Positive Consequences
A Bankruptcy Attorney In Tacoma Wa wants to see all the clients who file succeed in the program. Making the payments as scheduled for three to five years wipes away the outstanding debt and also dramatically boosts the person’s credit score.
Although the bankruptcy filing may stay on the credit report for as long as 10 years, the individual typically sees his or her credit score rising slowly but surely as long as the program continues to be followed successfully. It’s often possible to finance a car within the next year or two and even to buy a house a few years down the road.
