A time comes for some people when they are overwhelmed by their debt. The only recourse they find they have is to file for bankruptcy. But there is no need for them to feel embarrassed. Many people reach the point of having to file bankruptcy, and have done so. It is almost a normal occurrence as Americans fight to get their slice of the American Dream. A Cheap Bankruptcy Lawyer In Tacoma Wa has helped many clients get through the process. There are some things clients need to know about the bankruptcy process before embarking.
There are two types of bankruptcies that people generally file: Chapter 7 and Chapter 13. Chapter 7 is a complete liquidation of all debts that can be canceled. Chapter 13 is basically a reorganization of the debts. The debtor usually has about five years to pay the debts. Whichever bankruptcy the debtor can qualify for, he or she should understand some other things about the process. The first thing is to know all about the debts, income and the expenses. The debtor should have a full grasp of this aspect of his or her life before bankruptcy.
The next thing to do is to communicate with all the creditors to inform them of the situation. Perhaps one last attempt to resolve the debt issues with the creditors may work out. The next thing to do is to get a copy of the credit report from all three major reporting agencies. It is best to know what there is to work with before going into the bankruptcy process. The next thing that would help is to go through consumer credit counseling, which is something that would have to be done anyway during the bankruptcy process.
