A person who has a large amount of credit card debt compared to his or her income may eventually fall behind on payments. If the account is delinquent long enough, it may be turned over to a collections agency, or the card issuer may have a lawyer file suit against the customer. At this point, hiring a Bankruptcy Attorney In Tacoma WA may be advisable.
Court Judgments
If the case goes to court, a judge will very likely side with the credit card company, which is the plaintiff. That results in a judgment against the defendant, who is the card customer. A judgment may lead to wage garnishment or the seizing of property, such as a vehicle.
If the judge is feeling a bit compassionate, the judgment might result in a payment arrangement in which the minimum payments are lower than would otherwise be required. This is certainly not a sure thing, however. And even that amount may be too high for the individual to pay every month.
Chapter 7 and Chapter 13
Wage garnishment and the seizure of a vehicle can cause serious hardship for men and women, especially when they are already struggling financially. A Bankruptcy Attorney In Tacoma WA usually can have the judgment discharged in a Chapter 7 filing. If the client wants to file Chapter 13, this creates a repayment program, but it must be completed within five years. It can include any other obligations, with a few exceptions, including child support and student loans.
Credit Rating Concerns
People worry that bankruptcy will destroy their credit. In reality, if they are far behind on credit card payments, their credit score probably is in the poor range already. A court judgment may make the situation even worse, although there is only so low a score can go.
It helps to get legal information about bankruptcy from a lawyer like Rafal Gorski several months before filing may become necessary. The person is expected to complete credit counseling within a certain number of months before filing, so trying to file Chapter 7 or Chapter 13 at the last minute can be more difficult without having taken this step.
