Common Financial Debt Relief Legal Options For Lynnwood & Snohomish County Residents

Debt Relief With Chapter 7 Bankruptcy Filing

Chapter 7 bankruptcy is the most frequent form of filing. Often referred to as "liquidation" or a "fresh start" bankruptcy, a debtor is actually permitted to retain possessions up to a particular dollar value called "exemptions" as generally dependent upon Washington State. Anything above the exemption value can be taken and sold by the US Bankruptcy Trustee to pay down your unpaid debts. In most cases, you are able to keep or "exempt" all of the property you own.

When you complete the Chapter 7 Bankruptcy procedure, many of your debts are going to be discharged. These include debts such as:

  • Medical Bills
  • Credit Card Debts
  • Eviction Debts
  • Repossession Debts
  • Most Lawsuits
  • Garnishments
  • Most business Debts

Non-dischargeable Chapter 7 debts normally include:

  • Past due child support
  • Past due spousal support
  • Student loans
  • Criminal fines
  • Most taxes
  • Injuries caused by DUI

In the case that you own a home or car, you must continue to pay these loans assuming that you want to keep the property. That being said, if you can't afford them, or perhaps simply no longer really want them, you may give the property back to the lender. In the event that there is actually still a remaining balance or possibly penalties, it will be incorporated in your discharge and the lender can not come after you.

 

Debt Relief With Chapter 13 Bankruptcy Filing

Chapter 13 is sometimes referred to as "personal reorganization" bankruptcy, filing under chapter 13 involves making payments of all or possibly some of your debts to creditors over time. An usual chapter 13 plan last from 3 to 5 years, and permits you to keep all or most of your property. A chapter 13 might be required in case you are dealing with any of the following troubles:

  • Mortgage issues
  • Car payment arrears
  • Past due child support
  • Past due spousal support Tax Collections
  • Criminal penalties
  • Embezzlement or perhaps fraud
  • Civil Judgment with respect to intentional conduct (i.e. assault)
  • Lowering interest as well as payments to an affordable amount
  • Desire to maintain valuable {property|assets

Depending on your income and the value of your property you may be required to pay towards some or all of your unsecured debts. Having said that, at the completion of your Chapter 13 plan, most unsecured debts will be discharged.

 

     

    Debt Relief Lawyers Near Lynnwood, Washington 98026

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