Chapter 7

When you fall behind on bills, there's a point where there is simply no way to get ahead. When you reach this point, you may want to consider all of your options. Bankruptcy is a legal way to eliminate debt and get a fresh financial start, but some people are apprehensive about filing because they view it as an admission of failure.

Nothing could be further from the truth. In fact, filing for bankruptcy may be the most responsible way to get back on your feel financially, put a stop to harassing phone calls from creditors, and start rebuilding your credit score.

Chapter 7 bankruptcy is especially appealing because it allows you to eliminate all unsecured debt, including medical bills and credit card debt. Would you benefit from filing for Chapter 7 bankruptcy? There is only one way to find out. Contact one of our Olympia bankruptcy lawyers for a free consultation and find out if you qualify for Chapter 7.

The majority of people that file for bankruptcy do so because of medical bills. One prolonged illness can leave you with a mountain of bills and no way to pay them off. People who get sick or lose their job sometimes rely on credit cards to see them through these rough patches, but interest rates are so outrageously high that they may soon find there is no chance of ever getting caught up.

Chapter 7 bankruptcy eliminates credit card debt and most other unsecured debt, including medial bills. In as little as four months, you can start rebuilding your credit score without any need to worry about unmanageable debt. When your Olympia bankruptcy attorney petitions the court, all bill collectors and credits must stop trying to contact you. No more phone calls. No more harassment. In fact, all debt collection stops when you file for Chapter 7, including wage garnishment, repossession, lawsuits, and taxes.

If you fall behind on a credit card bill for as little as three months, the company may sell the debt to a collection agency. You may suddenly get phone calls or threatening letters from this company, making you wonder exactly who they are. Even worse, they may use all sorts of unscrupulous methods in an attempt to get you to make a payment. They may try to embarrass you by calling your employer, or even attempt to coerce you into cashing out your retirement to pay off the debt.

These companies use two highly effective tools – fear and embarrassment. If you even mention contacting a lawyer to inquire about bankruptcy, they may tell you that your credit will be ruined forever. Do not listen to them. Chapter 7 bankruptcy was developed by the government to help hard-working people get out from under unmanageable debt, allowing them to become active consumers once again.

You have legal rights in regards to finances, so contact one of our Thurston County bankruptcy lawyers today and find out how we can protect them.

As an Olympia resident, you already know the many benefits of living in our community. We are close to the city, close to the mountains, and close to the ocean. Our city has plenty of jobs, numerous business opportunities, and some quality neighborhoods for raising a family. These are just some of the reasons why you settled down in the area. To learn more about Olympia, check out this information on various neighborhoods in the city.

No matter how much you love the place you live, financial difficulties can strike in the blink of an eye. If you file Chapter 7, it will be handled by the Bankruptcy Court in Western Washington. You may find this page on bankruptcy basics useful, as it offers some useful information regarding Chapter 7.

Countless people fall behind on bills every day in Olympia. Many find it impossible to recover. Everyone knows how outrageously expensive medical care can be, so one prolonged illness may create a hopeless financial situation. Credit card debt can spiral out of control because the interest rates are so ridiculously high. Not to mention the fact that credit card companies often extend lines of credit that are simply too large.

When you file for Chapter 7 bankruptcy, all collections stop. In just four months, your unsecured debt is gone and you can focus on maintaining a healthy financial lifestyle while rebuilding your credit score. If this sounds appealing, it's time to take the next step.

The number-one mistake people make in regards to bankruptcy is waiting too long to file. Usually this caused by pressure from collection agencies or the threat of repossession or home foreclosure. Contact one of our Olympia bankruptcy lawyers today for a free consultation and find out if Chapter 7 is the right option for you.

Chapter 7 bankruptcy provides debtors with a quick solution to financial disaster and lets them get on the road to recovery within three to four months. Creditors must stop all debt collection the second the case is filed. Most people who file a Chapter 7 only have to attend one hearing, called a meeting of creditors. Chapter 7 debtors must file detailed documents with the bankruptcy court showing their income, expenses, property and debts along with other details of their financial lives such as recent debt payments, gifts, past income, former addresses and ex-spouses, among other things. They must also submit pay stubs, bank statements and tax returns to a trustee before the meeting of creditors.

Though final decisions are made by a bankruptcy judge in all bankruptcy cases, in most cases a debtor will only have to deal with the trustee. The trustee examines the case looking for property that can be turned into cash to divide up fairly for creditors. Bankruptcy law provides exemptions to liquidation so a debtor can keep important property needed to rebuild their lives after getting rid of debt. These exemptions allow most people who file bankruptcy to keep household goods, cars, homes, retirement accounts and other necessities.

After a Chapter 7 debtor files the case and attends the meeting of creditors, the court issues a discharge. The discharge is an injunction that makes it illegal for creditors to every try to collect a debt again. It provides a fresh start by “cancelling” the debt. Some debt can not be discharged. The most common examples of non-discharged debt are student loans, recent back taxes, domestic support obligations such as back child support or spousal maintenance and fines.

Because creditors in Chapter 7 rarely receive any money in the process, people who file Chapter 7 must show they do not have the income to make any payments on the debt. Bankruptcy law requires them to go through a means test. This test looks back six months and takes an average of the debtors income. If this average income is more than the median income for the debtors household size in their state of residence, then they go through another step of subtracting expenses from their income to show nothing is left for monthly payments to creditors. The means test tightly defines what expenses can be deducted. Because this process of looking back six months and tightly defining expenses is imperfect, some debtors who “fail” the means test can still show they are not abusing the bankruptcy system by showing there are special circumstances in their case. Examples of special circumstances would be a sudden drop in income that is unlikely to change or a new baby being born.

If a Chapter 7 debtor is making payments on a car or a house, they can keep this property if they can continue to make the payments. It may be necessary to sign a reaffirmation agreement. Because the reaffirmation agreement takes the debt outside the discharge, signing this agreement is risky and should be carefully considered.