Bellingham

Washington State may be the perfect place to live for those who want to experience the Pacific Northwest and its variety of locales and attractions. People with this kind of lifestyle preference will find the state to be a fantastic area to travel within, work, and even to live. Just like the other states in our country, Washington State exercises a lot of local authority when it comes to the governance and administration of regional and local laws. These local laws don’t often have a major impact on the many day-to-day experiences of residents, but they become crucial for people who may find themselves facing legal consequences, both of the criminal and civil variety.

There are a variety of great residential destinations for people to live within the state, such as Bellingham and various other parts of Whatcom County. However, the one thing that every place in Washington State shares with the rest of the country is that there are a series of laws that exist to provide structure, regulation, and even guidance for how people conduct themselves within the bounds of the law. These laws cover everything from what are considered illegal criminal acts in Washington State to financial activities in Washington State. This extends even to the banking systems many citizens and businesses rely on as well.

This is also, unfortunately, where sometimes laws must be put in place to look after residents when things go wrong. Even with a bustling economy and plenty of financial and employment opportunities, poor timing, circumstance, or choice can result in financial challenges for Bellingham residents. In times of financial crisis, Bellingham residents may be facing personal financial issues or sometimes even problems caused by what should trustworthy organizations such as banks. Many of these situations fall under bankruptcy law, which is a combination of both state and Federal laws.

For people who find themselves facing financial issues and wondering whether or not there are legal consequences—or even protections—for their situation, it is important to understand the basics of bankruptcy. It’s important to start getting informed on the legal circumstances behind bankruptcy and what they can mean for you because certain financial conditions may be imposed on you based on whether or not you can file for the economic status called bankruptcy and whether it makes sense for you to seek out legal expertise in bankruptcy law.

One of the first things a person in a serious financial situation should do is evaluate their status and the state of their debts and see whether this is something that falls under bankruptcy law or not.

Since bankruptcy is a process of handling serious debt issues, needing to file for it is, understandably, never viewed as a positive experience. However, despite that, needing to file for bankruptcy is also not a permanent state of financial insolvency and can, with proper management, be used to achieve financial recovery. Bankruptcy is a legally designated financial status that can provide some protections, organization, and management of debt obligations for a person or a business that finds they can no longer handle this task on their own. There are general guidelines for bankruptcy at the Federal level, but these are only overarching “guideposts” because the United States also gives a lot of autonomy to the individual states themselves. This grants them the authority to create and fine-tune specific financial laws that make sense for their regional needs and interests. It means that there are specific bankruptcy regulations right down to the state level, and Washington State follows this.

However, it’s important to understand that while bankruptcy itself is considered a single financial condition, within it exist different, more specific categories. There are, of course, some general conditions that apply to all potential bankruptcy cases, such as the inability to pay off debts under the current financial structure and circumstance. However, the exact details of who qualifies and what type of bankruptcy filing they are eligible for will depend a lot on the particular financial circumstances that a business or person finds themselves in. A bankruptcy lawyer in Bellingham can be invaluable in navigating all the different bankruptcy situations, such as:

Chapter 13 bankruptcy has a long-standing nickname in financial circles, and that is the “wage earner’s plan.” This is because it’s one of the more common financial solutions for those who are currently employed and still have access to a regular, fixed income. Full-time employees on a fixed monthly salary are the most common example of this. Because these people are still employed and still earning despite being in a challenging debt situation, this is sometimes considered a “lighter” or less severe form of bankruptcy filing.

Chapter 13 bankruptcy looks for solutions in debt management through a formal payment structure plan. Debt discharge is managed by creating payment plans, usually lasting between three and five years. These payment plans are similar to car loans or mortgages in that monthly installments are required. That amount is calculated based on living expenses and current income.

The two biggest requirements to qualify for Chapter 13 bankruptcy are that the person must be able to provide verifiable proof of a reliable income or steady revenue stream. The other important factor to qualify for this is that the debt does not go into the multi-million region. There is a hard cap of 2.75 million dollars or less to qualify for Chapter 13 bankruptcy. Anything over that amount is typically an automatic disqualifier from this type of bankruptcy filing.

Chapter 7 bankruptcy tends to be looked at as a more severe and serious means of discharging a business or person’s debt. Here, the debt is managed by looking at the business or person’s existing assets and then going through a process of evaluation and liquidation to try and recover enough funds to address the debt at hand. In many cases, Chapter 7 bankruptcy is the route that may be recommended if Chapter 13 isn’t feasible because there are no incoming salaries or revenue streams around which to structure a payment plan.

In a Chapter 7 bankruptcy, liquidation is defined as selling any viable assets that the debtor unequivocally owns and is not paying loan installments for. This may be property, or it may be actual physical possessions, such as professional or residential vehicles, equipment, or even furniture. A business or a private citizen may file for Chapter 7 bankruptcy.

As already explained above, in some instances of debt, property, such as homes, may be sold off. In other cases, however, especially if there are mortgage payments still incoming, mounting debt may make it impossible to keep up with mortgage payments. When that happens, a resident of a home forfeits their ownership rights in a financial process known as foreclosure. As with other states, Washington State has its own regional laws and regulations regarding how foreclosures in Bellingham and other parts of Whatcom County occur. The basic premise, however, is that the bank, creditor, or other organization that owns the mortgage now owns the home and is legally authorized to evict the resident and sell the property in an attempt to recover the debt on the outstanding amount remaining in the mortgage.

As upsetting as this experience may be for some, it is important to stay informed and educated on what your legal options may be. For example, paying a mortgage installment a few days late or missing the deadline for payment entirely may not necessarily trigger the foreclosure process. Bankruptcy lawyers in Bellingham can help guide homeowners through the process, such as advising them about a federal law that only empowers mortgage holders to seize property if mortgage obligations lapse over 120 days.

For many residents in Bellingham and other areas of Whatcom County, a credit card is the cornerstone of modern purchasing power. It’s not just convenient; in many cases, it is essential for anyone who wants to make purchases online. Unfortunately, the same ease of use that credit cards provide can lead to mounting debt, a problem throughout the country, with Washington State being no exception.

Fortunately, for people who are looking for help in Washington State, there are ways to manage credit debt. Official government services can provide credit reports, debt counseling, and other services. These are proactive ways for people to manage debt before it gets out of control. However, should things get too serious and debt noticeably unmanageable, debt holders, such as credit card companies themselves, are allowed to take legal action on the credit card debt. This can be as focused as trying to secure specific payments or addressing the debt as a whole. A bankruptcy or other financial law attorney in Bellingham may be able to help with this.

Foreclosures are also technically considered a type of repossession since commercial or residential property is being seized from the current owner. However, repossessions can occur with other types of property, including vehicles, electronics, or just about anything on a payment plan where payment obligations are no longer being met. There are specific repossession regulations in place depending on the types of property that qualify for seizure.

It’s important to know that even if your properties qualify for repossession, you still have rights that must be protected and observed. It’s also important for residents of Bellingham and other parts of Whatcom County to understand that if your automobile is important to you, a bankruptcy attorney in Bellingham may be able to help. For example, suppose an automobile is critical for livelihood. In that case, it’s possible to get an exemption by applying for specific types of bankruptcy that set the vehicle as “off limits” since repossession would impair the ability to repay debt.

Solutions should not cause additional problems, and this rings true for repaying debt as well. This can sometimes be the case when Whatcom County and Bellingham residents are faced with wage garnishment. Wage garnishment is a legal and financial mechanism through which a Bellingham resident has the salary “partitioned” by the court. In other words, a legal order has been given that says a specific amount of a person’s salary is automatically held and diverted for the payment of debts or other obligations. As one example, if a divorcee agrees to pay a specific amount for child support but then misses too many of those child support payments, the courts may garnish the future salary to ensure child support is automatically paid if the divorcee will not voluntarily do so with their own discretion and income.

Washington State law has numerous regulations on the maximum amount a wage may be garnished versus what is declared exempt. Washington law currently allows a maximum of 25% of a person’s weekly pay to be garnished. Depending on individual finances, this may, of course, either be inconvenient or unfeasible if it results in other debt obligations escalating, like not making rent or mortgage payments. A Washington State bankruptcy attorney can assess the situation and come up with a financially manageable plan.

America has the great fortune to house many of the most advanced medical treatments and quality care facilities in the world. Unfortunately, this is also balanced off by the fact that these treatments can be financially devastating for anyone who is not covered by comprehensive medical insurance. In some cases, there may even be situations where billing that was not previously discussed appears in the final payment amounts.

Financial or bankruptcy attorneys in Bellingham can assist people with these unexpected financial challenges. There are regulations in effect within Washington State that are designed to protect residents from surprise billing. Just because a hospital or clinic catches you off guard with charges you didn’t expect, that doesn’t mean you have no legal recourse in these situations. This can be especially important for people dealing with emergency treatments or discovering they now have ongoing, chronic conditions that may require regular treatment.

As expected, there are not only laws in place that define how citizens can resolve debt but there are also laws that cover consumer lending laws. This is supposed to regulate the way banks or other financial organizations conduct themselves as well as define the actions they are permitted to take when trying to resolve debt issues with those who owe them payments. These laws also extend to how the creditors, their debt collectors, and other duly authorized agents may treat Bellingham citizens when attempting to collect payments. Laws exist at both the Federal and state levels governing how creditors and their debt collectors are permitted to act.

Sadly, there are times when creditors, or the agents acting on their behalf, may try to weaponize the ignorance of the people they are trying to collect from. They may take actions that violate the rights of Bellingham residents, hoping they will believe they are still acting within their legal rights. It is important for residents to understand that even when they owe money to a creditor, they still have rights that must be respected. For example, creditors and collection agents can’t make phone calls very early or very late at night. If a workplace has policies in place barring people from calling, creditors must respect these policies as well. Those who may have experienced such treatment from collection agents should contact a financial law or bankruptcy lawyer in order to get guidance in these situations.

For most normal litigation activities, residents of Bellingham and other parts of Whatcom County are generally advised to seek out the services of an expert, such as a litigation attorney. There are, however, circumstances where a general litigation lawyer may not be appropriate, and it would be better to seek guidance from a bankruptcy lawyer in Whatcom County or some other kind of financial law attorney instead.

A bank or credit card company, for example, rather than working with a collection agency, may file for a lawsuit and serve a Whatcom County resident legal papers informing them that they are being sued. However, as with any lawsuit, the person being sued does have legal options available to them, including negotiating or even disputing the claims.

Banks aren’t the only financial organizations that can offer loans. Other companies not only do this as well, but they may also even provide faster and easier approval for such loans. As to be expected, however, that ease of loan approval comes at a cost, though this will only make itself known if people fall behind. Penalties such as late fees, increasing interest rates, and other consequences are some of the ways that loans from “payday companies” can quickly escalate into unmanageable debt.

In some instances, these penalties can be so harsh and unreasonable that they can create a spike in debt out of all proportion to the original loan. In this situation, it’s still possible to achieve a positive resolution by getting the help of an experienced financial law or bankruptcy attorney in Bellingham or throughout Whatcom County.