In Washington, consumers file for bankruptcy as a last effort to settle their debts. The claims could provide liquidation or a new repayment plan to settle the debts. They can also help the consumer avoid foreclosure and repossession after the bankruptcy is approved. A Cheap Bankruptcy Attorney In Puyallup Wa provides insight into these cases.
Can Creditors Deny Access to Bankruptcy?
The creditors have the opportunity to state their wishes during the meeting of creditors. During this hearing, the creditor can refuse to allow the consumer to add their account to the bankruptcy claim. However, the judge can overrule this decision if the debt qualifies for bankruptcy.
Can All Creditors File a Legal Claim Against the Consumer?
No, the creditor must prove that the debt is valid first. A creditor cannot file a lawsuit against a consumer if they have collected funds through an insurance claim for this debt. Additionally, if the debt was closed within last seven years, it is possible for the consumer to avoid a lawsuit based on the statute of limitations that apply to the debt. Also, the consumer is protected under an automatic stay once the bankruptcy claim is approved by the judge.
Can a Lender Foreclose on a Second Home During a Bankruptcy?
If the asset is included in the claim, it is also protected under the automatic stay. However, the exemptions that apply to a second home aren’t as high as those available for a primary property. The homestead exemption can help the consumer keep their primary home, but this doesn’t apply to second properties.
What Happens if the Claim is Discharged Early?
If the court discharges the claim due to a violation, the consumer becomes responsible for all debts immediately. Any debts that were discharged become valid again, and the consumer could face legal action.
In Washington, consumers start a bankruptcy claim by approaching an attorney. The claimants must provide information about their income and debts. They must also determine what chapter is appropriate for them based on eligibility. Claimants that want to learn more about the process can contact a Cheap Bankruptcy Attorney In Puyallup Wa right now.
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