As you go through life, you can accumulate debts that you cannot pay off in full. These financial obligations leave you open to the risk of having your wages garnished and assets seized. You could find it difficult to meet everyday expenses like paying your rent or buying your groceries as a result.
Rather than live with mounting debts that take a negative toll on your financial security, you can resolve them in a legal and effective manner. You can find out more about your legal options when you consult with a knowledgeable bankruptcy lawyer in Olympia, WA, today.
Total Liquidation
When you cannot pay any of the debts that you have because of limited finances, you could be eligible for filing for a Chapter 7 bankruptcy. This type of bankruptcy effectively liquidates most or all of your debts. It zeroes out your accounts and prevents creditors from taking any further collective actions like garnishment against you.
However, this bankruptcy cannot be used to eliminate debts like delinquent taxes or defaulted student loans. However, these creditors also cannot contact or take action against you until your bankruptcy case is discharged.
You also can file for a Chapter 13 bankruptcy that combines all of your debts into a single sum. You then make payments on that sum for six years until the case and the remainder of most or all of your debts is discharged. Your bankruptcy lawyer in Olympia, WA, can advise you on the best case to file.
