When there’s not enough money to pay the bills, bankruptcy can be an option. Bankruptcy can either restructure debt or completely eliminate it. The type of bankruptcy that is available depends on someone’s income and the types of debt they have. Bankruptcy laws permit exemptions for certain items from the bankruptcy process. State exemptions will sometimes allow someone to keep their things under a Chapter 7 bankruptcy. A Chapter 13 bankruptcy also provides exemptions, but a repayment plan is ordered by the bankruptcy court over a designated amount of time. When the payments are complete, the rest of the debt is forgiven. Determining what type to file will be explored by a Bankruptcy Attorney In Puyallup Wa.

An attorney understands that money can be tight and will work with a client to establish an easy payment plan that fits their budget. They can stop creditor harassment, repossessions, foreclosures, lawsuits, garnishments, and creditor harassment. Before bankruptcy is filed, individuals filing must attend a mandatory credit counseling program. It is the only way to qualify for bankruptcy relief. It must be taken within 180 days of filing for bankruptcy, and proof must be given to the bankruptcy court within 15 days after the papers have been filed. A repayment plan will be given at the end of counseling services.

Chapter 7 bankruptcy is a liquidation of assets that are not exempt. The proceeds from the sale of the assets will go to the creditors. This type of bankruptcy works well for individuals that don’t have any source of income and a high amount of debt like credit cards or unsecured loans. It can discharge all of the debts without any type of repayment program. Bankruptcy will not discharge back child or spousal support, student loans, or certain taxes.

A Bankruptcy Attorney In Puyallup Wa will also discuss Chapter 13 bankruptcy. This type allows someone to keep all of their assets. Their debt is restructured with a payment plan to the creditors. Certain debts under this type of bankruptcy cannot be discharged as in Chapter 7. If you are having problems paying your bills and have been overwhelmed by debt, visit a bankruptcy attorney to explore your options.