Overwhelmed by debt? For people who have more debt than they can repay, bankruptcy can be a way to get a fresh start. However, bankruptcy is not available for every debtor and it comes with its consequences. Find out whether bankruptcy is the right solution by talking with a Bankruptcy Attorney In Tacoma Wa.
Is Bankruptcy the Right Option?
Many people who are overwhelmed by debt may be able to restructure without filing for bankruptcy by consolidating loans, restructuring payments, or even selling some assets.
What Is the Chapter 7 Means Test?
Under Chapter 7, only people with limited means can file for bankruptcy. A bankruptcy attorney should be able to look at income and determine whether a person will pass the Chapter 7 means test.
Is Chapter 7, Chapter 13, or Chapter 11 Better for this Situation?
Both types of bankruptcy have their pros and cons. Chapter 13 bankruptcy allows people to keep more of their assets and may be helpful for people who want to save their homes from foreclosure or keep their cars. Chapter 13 also allows people to file even if they have previously filed a Chapter 7 bankruptcy or do not pass the Chapter 7 means test. However, Chapter 13 requires repayment of a portion of the debts and can take years to discharge. Chapter 7 is a faster bankruptcy that allows total discharge of debts and can often be accomplished in a few months. However, Chapter 7 requires a total liquidation of assets and is not available to all debtors. Chapter 11 is similar to Chapter 13 but is for businesses.
What Fees Does the Attorney Charge?
Money is obviously a concern for people filing for bankruptcy. It is important to find out what fees will be associated with the bankruptcy when they are payable, and how they are payable. Some Chapter 13 fees may be included in the bankruptcy payment plan, and, if so an attorney should explain that to the client.
Are There Red Flags?
Before filing for bankruptcy, it is common for people to have long-term struggles with money. This may have led to property transfers and payouts to certain creditors. The bankruptcy court may flag those as problematic or even fraudulent.
Find Out More
To find out more information about bankruptcy contact a Bankruptcy Attorney In Tacoma Wa.
