When people realize they will probably need to file for bankruptcy, they tend to experience a range of emotions. They may feel guilty, scared and embarrassed. In contrast, they also may feel a glimmer of relief at the possibility of getting out from a pile of unmanageable debt. A Cheap Bankruptcy Lawyer In Olympia WA can answer their questions and help them get started.
Chapter 7 vs. Chapter 13
These individuals may need to file for Chapter 7 with a Cheap Bankruptcy Lawyer In Olympia WA because they cannot afford a repayment plan that would be set up through Chapter 13. Chapter 7 is truly a fresh start, since outstanding obligations are cleared away except for those not eligible. The person must still make child support payments as scheduled, for example, and is responsible for any overdue payments. Student loan debt also is not included in Chapter 7.
An attorney such as Rafal Gorski generally wants to spend some time helping the client look carefully at the different options. One man or woman may feel determined to file Chapter 13 because this person hates the idea of not paying off the debts. However, there simply may not be enough income to manage this, even when combining those debts and creating one lower monthly payment. A significant percentage of participants in Chapter 13 eventually default because their budget is just too tight.
Filing Quickly
Sometimes a petition for bankruptcy must be filed quickly because the person has reached a crisis stage in regard to finances. The bank may be putting the house up for auction, for example, or a credit card company may have sent a notice that a lawsuit will be filed soon. Normally, however, a person is expected to complete credit counseling before the paperwork is filed.
Rebuilding Finances
Many people dread filing Chapter 7 because they have heard that the decision stays in their credit history for many years. Yet rebuilding one’s finances after taking this step tends to be easier than a person might think. Options are available for increasing the credit score, for example. Without an overwhelming load of debt, the individual can start over with new goals.
