Stop Foreclosure And Harassing Calls With The Help Of A Bankruptcy Attorney In Tacoma Wa

One of the first things that happens when an individual gets behind on their bills is harassing telephone calls from creditors who want their money. Another event that can occur is foreclosure proceedings could begin if the mortgage payment hasn’t been paid. A Bankruptcy Attorney In Tacoma Wa can stop these types of situations by creating an automatic stay by filing bankruptcy on your behalf.

Once the paperwork is filed in the bankruptcy court, an automatic stay begins and an individual cannot be removed from their house because of foreclosure. A car cannot be repossessed, and a creditor will no longer be able to call an individual trying to pressure them to pay their bill.

Chapter 13

If an individual is eligible to file Chapter 13 bankruptcy, they will also have to file a repayment plan. The plan must include the reasonable monthly expenses and how much money they will have left to pay off their bills. Depending on the debt involved in the case, some creditors will accept as little as ten cents on a dollar as part of the repayment plan.

A repayment plan must also be delivered in good faith. Unsecured creditors have to be paid at least as much as if Chapter 7 was filed. Any disposable income has to be paid into the plan for three years. Some individual will have to pay up to five years in order to pay half of the Chapter 7 amount.

Chapter 7

Chapter 7 bankruptcy is considered the fresh start bankruptcy. A trustee is appointed to collect all of the assets an individual owns that aren’t exempt. The amount that is received will pay the trustee’s salary and the creditors.

Keeping Certain Assets

An individual might be able to keep certain assets under Chapter 7 bankruptcy, such as a car, furniture or house by reaffirming the debt. If an individual agrees to do this, they cannot file for bankruptcy and wipe out the debt for eight years. This is something that should be thoroughly discussed with a Bankruptcy Attorney In Tacoma Wa before bankruptcy is filed so the appropriate paperwork can be filed with the court.