If you are able to qualify, pursuing a Chapter 7 bankruptcy is an extremely powerful debt relief tool. Do you need to wipe out credit card debts or medical bills? Are you facing garnishments or a lawsuit? If so, we can help.
Chapter 7 Bankruptcy Lawyers in Washington. Get your questions answered. What about my personal property and other assets?If a debtor can keep a house or a car that he or she is still making payments on by continuing to make the payments. The creditor will want the debtor to sign a “reaffirmation agreement”. Sometimes this makes sense but it is something a debtor should carefully consider because it removes the protection a debtor regarding the debt.
For instance, if a car is repossessed after a bankruptcy and the signing of a reaffirmation agreement, the creditor may be able to sue and garnish wages for any deficiency in the loan regardless of the bankruptcy. If a debtor does not want to keep property he or she is still making payments on, the property can be “surrendered” or given back to the bank and the debt is wiped out.
At the end of a bankruptcy debt is cancelled through a “discharge”. Some debt can not be discharged, such as student loans, some back taxes, back child support or alimony and traffic tickets.
Can filing bankruptcy help you and your family get back on your financial feet?Chapter 7 bankruptcies are the most common type of bankruptcy. They are relatively quick and inexpensive. A typical Chapter 7 only lasts three to four months. In the vast majority of Chapter 7 cases, the debtor does not have to give up any property. However, if a debtor does give up some property, the law provides a way for the creditors to share the money that comes from liquidating property equally. A debtor can only file one Chapter 7 every eight years.
To succeed in a Chapter 7, a debtor must also show he or she does not have enough disposable income to pay their debts by filling out a “mean test” form and by showing what their income and budget will look like in the next six months. A debtor may be forced to restructure in a Chapter 13 repayment plan if it looks like he or she can repay at least part of the debt could be repaid with some effort.
Will I have to go to court?As soon as a Chapter 7 bankruptcy is filed, all debt collection must stop. Creditors have to stop all lawsuits, garnishments, repossessions, foreclosures, phone calls, etc. A trustee is appointed to administer the case. One hearing date is set about a month from the day the case is filed for a “meeting of creditors.” In most cases, this “meeting of creditors” is the only hearing the debtor will have to attend.
At the meeting of creditors, the debtor appears with an attorney to meet with the trustee and to testify under oath about the bankruptcy case. Creditors have the right to appear at this meeting but they usually do not. In most cases it’s not worth their time to appear because they are unlikely to receive anything whether they appear or not.
During your initial consultation, we will explain in detail how your court appearance is likely to go and be handled. More importantly, we will be with you every step of the way. One of our lawyers will be with you every step of the way.
It is the trustee’s job to examine the bankruptcy forms and ask follow up questions of the debtor under oath. The trustee is making sure that they debtor is telling the truth about the bankruptcy and to investigate and make arrangements to sell any property that may be available to the creditors.
In most cases, a debtor’s property is covered by exemptions. A trustee can object to exemptions. A debtor should be careful to claim the correct exemptions, which can be tricky.
If a debtor can keep a house or a car that he or she is still making payments on by continuing to make the payments. The creditor will want the debtor to sign a “reaffirmation agreement”. Sometimes this makes sense but it is something a debtor should carefully consider because it removes the protection a debtor regarding the debt.
For instance, if a car is repossessed after a bankruptcy and the signing of a reaffirmation agreement, the creditor may be able to sue and garnish wages for any deficiency in the loan regardless of the bankruptcy. If a debtor does not want to keep property he or she is still making payments on, the property can be “surrendered” or given back to the bank and the debt is wiped out.
At the end of a bankruptcy debt is cancelled through a “discharge”. Some debt can not be discharged, such as student loans, some back taxes, back child support or alimony and traffic tickets. Wipe out your credit card debts, medical bills, garnishments, and lawsuits now.
Contact us today to find out how we can help you through your Chapter 7 bankruptcy.