Overwhelming debt impacts every part of an individual’s life. He or she might find they cannot obtain a job, secure the housing they desire or take out a new loan until their financial situation improves. One option available to these individuals is bankruptcy but is this the right choice? The best way to determine whether to take this legal action or go another route is to research all options along with their advantages and disadvantages. In the event questions still remain once this has been done, speak to a Bankruptcy Lawyer In Olympia WA for more help.
Chapter 7 Bankruptcy
Men and women who choose Chapter 7 bankruptcy are not required to file a repayment plan with the court. With this filing, the bankruptcy trustee takes possession of any nonexempt property owned by the debtor and uses the funds from the sale of these assets to pay creditors. The order in which the creditors are paid is outlined in the Bankruptcy Code. The debtor retains certain property in this situation, and an attorney can be of great assistance in determining what he or she will be allowed to keep and what must be sold.
Chapter 13 Bankruptcy
Often referred to as a wage earner’s plan, Chapter 13 bankruptcy is an option for those who have a regular income and can pay all or part of the debt. A repayment plan is filled with the court and covers a period of three to five years. During the established period, the debtor makes regular payments to creditors. While the payment plan is in place, creditors are legally prohibited from starting collection efforts or continuing ones that were already in place.
A Bankruptcy Lawyer In Olympia WA can be of great help in comparing the available debt relief options and determining which is best for the debtor’s unique situation. Many individuals do find they obtain relief by choosing this option and are willing to accept the accompanying consequences, such as the bankruptcy appearing on the debtor’s credit report for a number of years. Others discover another solution is better for their needs. The only way one can know is to have the facts and make an informed decision with this information and their knowledge of their own finances.