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It’s time to file for bankruptcy. Your debts are too high and you can barely make the minimum payments. Creditors and bill-collectors are hounding you day and night, and you have to use your credit card to pay for necessities. Your debt situation is so out of control that you aren’t really sure how much you owe anymore. You need to get out from under the mess you’ve made and bankruptcy is the answer; specifically, Chapter 7 bankruptcy in Tacoma, which may be a fresh start for you. Here are some things you need to know: - Chapter 7 bankruptcy is often called a straight bankruptcy, because it is fairly simple and straightforward. Under chapter 7, you sell your assets to pay off as much of your debt as possible. The cash from the sale of your assets is given to creditors, like banks and credit card companies.
- The law requires that, before you will be allowed to file for bankruptcy, you will need to undergo credit counseling. This needs to happen within 6 months of filing. Additionally, you will be required to complete a financial management course after you file.
- Filing bankruptcy requires quite a bit of paperwork. In preparation for filing, you need to collect your financial records. An itemized list of your sources of income, records of major financial transactions from the last two years, regular living expenses, a list of assets you own, loan documents, tax returns, and deeds are just some examples of what you will need to prepare. Then, you hire a bankruptcy attorney. Your attorney will help you with all the remaining paperwork that you will be required to file.
- Using the financial information you collected, your attorney will help you file a bankruptcy petition with the bankruptcy court. The court will review your case and determine if you qualify for bankruptcy under chapter 7. If you qualify, the court will assume legal control of your debts and all your property. Some property is exempt; you need to discuss the specifics of all your property with your lawyer to determine what you can keep and what you will need to cede to the bankruptcy court. Once you file, creditors and debt collectors will no longer be able to contact you.
- The court will assign a trustee to your case. The trustee will review your case and oversee the selling of your assets and the distributions to your creditors.
- Bankruptcy can do many things for you. It can give you a chance to become current on your major assets, like your home. It may stop foreclosure proceedings or repossessions. Bankruptcy can also stop your wages from being garnished and get your utilities turned back on. However, bankruptcy will not solve all your financial problems. It will not eliminate the rights of secured creditors, like mortgage companies, to your property, or discharge alimony or child support debts. Bankruptcy also does not protect co-signers. If you declare bankruptcy, your co-signers will need to pay the debts they cosigned.
- Once you have filed for bankruptcy, you can start to put your life back together again. Even though the record of your bankruptcy will stay on your credit report for ten years, you cannot be discriminated against for filing bankruptcy. Without your wages being garnished and creditors hounding you, you will be in a better position to repair the damage done to your credit by missing payments. Chapter 7 filers are often able to buy new homes and you will even have options for obtaining a new credit card.
Chapter 7 bankruptcy in Tacoma is an effective way for you to get a fresh start. If you owe more than you can pay, if you use credit for necessities, if you are hounded by bill collectors, and if the thought of sorting out your finances fills you with dread, it’s time to look into filing chapter 7. Don’t suffer another day. Start your better financial future now.
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