Mount Vernon

For people looking to experience the Pacific Northwest and its many locations and attractions, Washington State can be a great destination. To some Americans, it’s the perfect place to travel, work, and even live. It is also, just like other states around the country, a state that has a lot of authority and self-determination when it comes to the administration of regional and local laws. For the most part, the laws have minimal impact on the day-to-day lives of residents, but they can be crucial in times when people find themselves facing possible legal consequences for both criminal and financial actions.

People who come to Washington State have a variety of places to choose from when taking up residence, such as Mount Vernon and other parts of Skagit County. However, no matter where they go in these areas, they still live under the structure of federal, state, and municipal laws. These laws govern everything from a range of illegal criminal acts to financial activities in Washington State. This extends even to the banking systems the citizens and businesses of Skagit County rely on as well.

Unfortunately, the execution of the law also frequently happens when things go wrong. Even in a country like the USA, with a vibrant economy and growing financial and job opportunities, things don’t always go to plan. Poor timing, unexpected circumstances, or even just poor choices may sometimes result in financial problems for Mount Vernon residents. When such issues become overwhelming, Skagit County residents may even face a serious crisis, sometimes even precipitated by the bank they rely on. Such problems may fall under bankruptcy laws, which are a mix of both state and Federal laws.

If Mount Vernon or other Skagit County residents find themselves in financial distress and unsure if they have legal consequences or even protections due to their circumstances, one way to find out is to understand the basics of bankruptcy. It can only benefit people to inform themselves of the legal situation surrounding bankruptcy and what it may mean. This is because specific financial conditions and outcomes may arise based on whether a resident or business can file for the economic status called bankruptcy, and that determines whether it makes sense to seek out someone who can provide guidance through this experience, such as a bankruptcy lawyer.

One of the first steps a person with financial issues should take is to evaluate their status. Look at the state of the outstanding debt or debts and see whether this qualifies as a bankruptcy filing situation or not.

People only ever hear the word “bankruptcy” used during periods of extreme financial crisis, so the idea of filing for bankruptcy is, understandably, not looked forward to by anyone. However, it’s also important to understand that while bankruptcy is not a positive outcome, it doesn’t necessarily have to be a permanent step backward either. Recovery is, in fact, the usual goal of this process. Bankruptcy is a legally designated financial state that can confer specific protections, organization, and even management of debt obligations a person or business may not be able to manage on its own. Overarching laws at the federal level exist to regulate bankruptcy, but in some ways, these are only “guideposts” because the federal government grants a good deal of autonomy to the individual states in this area. This provides states with the ability to tailor-make their financial laws to be in line with their regional needs and interests. It also means that for many states, specific bankruptcy regulations exist at the state level, and Washington State is no exception to this.

However, people should understand that while bankruptcy is considered a financial status, more specific categories exist within it. Of course, some general conditions universally apply to a bankruptcy case, such as being unable to pay off debts under the current financial circumstances. Whether a person should file bankruptcy and what specific type they are eligible to file for depends on a broad array of different economic factors that make up a person’s or business’s debt situation. A bankruptcy lawyer in Mount Vernon can often be an important advocate in helping to find a specific bankruptcy solution, such as:

Chapter 13 bankruptcy has a nickname in finance, that being the “wage earner’s plan.” It’s a common solution offered to those who are employed, and either are paid a fixed monthly salary or have access to a reliable and regular revenue stream. Full-time employees are the most common people who qualify for this. Because people are still employed and earning an income, qualifying for this type of bankruptcy is often regarded as being a less severe type of bankruptcy filing.

Chapter 13 bankruptcy works out solutions for debt repayment by creating a financial structure plan. Debt discharge is handled through payment plans, typically lasting three to five years. The payment plan structure resembles car loans or mortgages with regular monthly installments. The amount required is calculated based on balancing living expenses and current income.

Qualifying to file for Chapter 13 bankruptcy means meeting two major criteria. The first is that a person must provide some verifiable evidence of fixed income or steady revenue stream. The second criterion is that the debt owed must not exceed a set maximum. In this case, a hard cap of 2.75 million dollars is the maximum allowable debt for Chapter 13 bankruptcy. Any amounts higher than this limit disqualify a person from filing.

Chapter 7 bankruptcy is often regarded as the more severe method of discharging a business or person’s debt. Here, there is a process of evaluating and then liquidating assets in an attempt to recover funds for debt repayment. For many people, Chapter 7 bankruptcy is the route pursued if Chapter 13 isn’t available due to a lack of fixed income or revenue stream to rely on.

For a Chapter 7 bankruptcy, the liquidation process is a matter of assessing those viable assets that the debtor actually owns. Any assets that are currently still being paid for, such as a home or a car with loan payments, are not eligible for liquidation. Assets may be property, or they may be actual objects, such as professional or residential vehicles, equipment, and furniture. Both businesses and citizens may file for Chapter 7 bankruptcy.

There are some circumstances where property, such as homes, may be sold off to recover debt. In many instances, if there are mortgage payments still owed, the debt makes it impossible to keep up with those mortgage payment obligations. Should that happen, a homeowner forfeits their claim in a financial process called foreclosure. Like other states, Washington State has specific regional laws and regulations for administrating foreclosures in Mount Vernon and other parts of Skagit County. The core concept of a foreclosure is that the holder of a mortgage, be it a bank, creditor, or some other financial organization, now owns the home. They have the legal authority to put it back on the market and sell it to recover whatever remaining debt the original homeowner failed to pay.

Although being notified of a foreclosure is understandably upsetting for a homeowner, it’s critical at such a time for people to educate themselves. For example, people should understand that just missing a mortgage payment by a few days won’t immediately trigger a foreclosure. A bank or other organization can only seize property if mortgage obligations lapse over 120 days. This and other important details are things bankruptcy lawyers in Mount Vernon can help with.

Foreclosures are classified as a very specific type of repossession. Repossession is exactly what it sounds like. When an asset, whether that is a property or some object like a vehicle, retail electronic product, or other item, is on a loan and repayment plan, and those payments fall behind, the holder of the loan has the authority to take that asset back. It is important to note, however, that specific repossession regulations are in place that vary with the type of asset that is subject to seizure.

Mount Vernon residents and others in Skagit County should be aware that even if properties have been designated for repossession, there are still consumer rights in play that must be protected and observed. When in doubt, a bankruptcy lawyer in Mount Vernon can be an invaluable guide to navigating the specific circumstances and conditions. For example, a person in debt may rely on access to a vehicle as a source of livelihood. A bankruptcy lawyer may be able to assist in getting an exemption by helping to file for specific types of bankruptcy. If successful, this designates the vehicle as “off limits” since seizing the vehicle would impair the overall ability to repay debts.

In some cases, a specific financial solution can cause more problems to arise. This can occur, for example, when Skagit County and Mount Vernon residents face wage garnishment. Wage garnishment is a legal/financial process in which the court creates a “partition” on a person’s salary. This means that every month, a part of a person’s monthly income is inaccessible to that person because it is automatically diverted away and used for debt repayment. A common usage of wage garnishment is if a divorcee who agrees to pay child support misses too many payments. Wage garnishment is then instituted to ensure future monthly pay is diverted to ensure those payments go through.

There are, however, limits to this. Washington State law has numerous regulations on the maximum amount a wage may be garnished and what may be declared exempt. At the upper limit, a maximum of 25% of weekly salary may be garnished. Much of this depends on the individual financial situation, as this may either be inconvenient or financially unfeasible if it exacerbates other debts, such as not making rent or mortgage payments possible. Washington State bankruptcy attorneys can help here.

The majority of residents in Mount Vernon and throughout Skagit County rely heavily on the use of a credit card for modern-day purchases. While convenient, what makes credit cards often critical is that they are essential for making purchases online. However, the same convenience that makes credit cards an easy alternative can quickly escalate into serious debt without self-control and discipline. Credit card debt is a big issue throughout the United States, and Washington State is no exception.

For people who do find themselves in trouble with credit card debt, there are ways to help manage this. Government services are available to provide credit reports, debt counseling, and other services. These give people the tools to help control debt before it gets out of control. However, in the event that the debt escalates into something unmanageable, debt holders, like credit card companies, gain new legal authority when it comes to trying to recover credit card debt. This authority can be more focused, such as trying to get specific payments, or may look at closing out the entire owed amount. A bankruptcy lawyer in Mount Vernon can advise people on what to do in these situations.

The United States takes great pride in offering some of the best and most advanced medical care in the world, but that, unfortunately, may also come with a high price tag. This is made even worse by the fact that people who don’t enjoy comprehensive health insurance from an employer can be financially wiped out by a single illness or accident to themselves or a family member. There are even instances of “surprise” medical bills where amounts not discussed are added to the final bill after treatments are administered.

Mount Vernon bankruptcy attorneys may be able to help people cope with these unexpected financial crises. Washington State has laws in place to protect residents from surprise billing. Residents should be aware that just because a hospital or clinic is officially licensed to practice, that doesn’t mean the billing they give to patients is the final say, and there’s no legal recourse if the amounts are not what was discussed.

Washington State's financial laws are there not just to oversee the financial behavior of citizens but also the financial organizations they interact with through consumer lending laws. These laws are in place to regulate both what the banks and other money lender organizations do, as well as their duly authorized agents, such as debt collection agencies. These laws outline exactly what such agents are legally empowered to do, and they exist at both the Federal and state levels, defining both permitted actions and those deemed illegal acts.

Unfortunately, this is something that Mount Vernon residents may need to keep informed on, as some unethical creditors and collection agents rely on the ignorance of people in debt. They may commit illegal acts in the hopes that their victims will assume any action they take is legal when the reality is their rights are being violated. Even while owing a debt to a creditor, Mount Vernon residents have rights that must be respected. One example is that if a person owing money is employed somewhere with a no-visitors policy, a creditor or other collection agent has no authority to ignore that and seek out the person in debt. Similarly, just because a person owes money does not empower a collector to call inappropriately early in the morning or late in the evening to disorient or intimidate the person in debt.

In typical legal situations, if Mount Vernon or other Skagit County residents find themselves facing a lawsuit, the normal best practice is to seek out the expertise of a general litigation lawyer. However, in some specific situations, such as where debt is involved, a lawsuit lawyer may actually be less appropriate than talking to a bankruptcy lawyer in Skagit County or some other type of financial law attorney.

A person’s credit card company or bank may decide, after no results with a collection agency, to litigate and serve a Skagit County resident papers notifying them that a lawsuit is being filed against them. Residents must stay calm and remain aware that, as with any lawsuit action, the person being sued still has legal options available to them, which include negotiating or even disputing and defending against the claims.

It’s not just banks that can offer loans. Other financial organizations can do so as well and, in some cases, may even offer faster and easier approval rates – on the surface. However, it should come as no surprise that a loan that can easily be secured will have other downsides that crop up later. Some of the most common are additional loan fees or even punishing interest rates and other penalties if payments fall behind. This can quickly lead to escalating and unmanageable debt.

Sometimes, these penalties are so severe they can “spike” the debt in ways that eclipse the original loan. People still have legal options available to them to get a positive resolution. Any local resident can get help from an experienced financial law or bankruptcy lawyer in Mount Vernon or throughout Skagit County.