In Washington, all consumers have two primary options for filing bankruptcy. They are chapters 13 and 7. These chapters provide two different options for settling debts. However, they can also provide consumers with an exceptional benefit. The following is an assessment for filing for chapter 13 through a Cheap Bankruptcy Attorney In Tacoma Wa.
Income Eligibility Requirements
The chapter requires a higher income to qualify for bankruptcy. The consumer must have a higher income than the standard median for their county of residence. They must provide income statements for their case to enable a full evaluation. If their income isn’t higher than the county’s median, they cannot qualify for the chapter 13 bankruptcy.
Credit Counseling Requirements
All consumers filing for chapter 13 must complete a credit counseling program. The program must be approved by the state of Washington and possess the necessary credentials. The consumer must complete the entire course before their claim is placed before the judge. If they don’t complete this prerequisite, they aren’t allowed to file at all. The purpose of the program is to show consumers how they mismanaged their debts and how to stop themselves from becoming overwhelmed with debt in the future.
What is an Automatic Stay?
An automatic stay is a protection that is achieved in bankruptcy. It prevents creditors from filing legal claims against the consumer. More specifically, it protects against foreclosure and repossession of property. It lasts for the full duration of the bankruptcy.
How Does the Chapter Work?
The consumer submits monthly payments to the court. The payments are divided among their creditors to pay off their debts. The consumer uses disposable income to pay off any additional debts they have that weren’t included in the claim. They are prohibited from opening any new lines of credit.
In Washington, all consumers can settle their debts by utilizing chapter 13 bankruptcy. The action provides them with protection against legal action and helps them to pay off their debts. It lasts up to five years and gives them the option to pay more each month for certain debts. Consumers who need to start a claim contact a Cheap Bankruptcy Attorney In Tacoma Wa today.
