The first thing you need to know is that you are in the right place. Seeking out information and discovering you have options is the first and most important step you will take on this journey. It is a journey because you are likely heading into the unknown. You are not alone in this and you will find helpful information here to get you started with understanding Chapter 7 bankruptcy in Tacoma.
In order to best explain this, it is easiest to present a possible scenario. Suppose a person has accumulated debt through normal or excessive living. This can include credit cards, mortgages, car loans, personal loans, student loans, medical bills, child support, and more. At some point, the ability to repay all of these debts has become completely overwhelming or impossible for the individual. This can happen for a number of reasons. Job loss, reduced wages, a medical emergency, or some personal or family crisis can all account for the inability to keep up with debt payments.
This is the point where many realize they need outside help to either make a repayment plan that works for them, or to get relief from the heavy debt burden that is weighing them down. Essentially, filing for Chapter 7 would call on a trustee appointed on behalf of the person to liquidize this person's remaining assets, if any, and dispense them among the various creditors in a prioritized manner that has been predetermined by bankruptcy code. The person's unsecured debt (credit cards, medical debt, etc.) is eliminated. Some debts such as student loans, child support, and taxes cannot be discharged. Also, some of your property may be exempt from liquidation. This entire proceeding should only take a few months from start to finish.
Now that you are familiar with how it works, here is the information on what you will have to do in order to file. You will need to take a "means test." This will be the beginning of a lot of paperwork that will need to be filled out. The means test takes a look at your monthly net income, how much and what kind of debt you have incurred, and other sides of your financial circumstances. Basically, if your annual income falls below the median for the state of Washington, then you are usually considered a candidate to file. However, if your income is more than the median, it will be necessary for you to create a list of your expenses. This will help the courts estimate your disposable income and determine if you meet the qualifications to make a filing.
Choosing to file a Chapter 7 bankruptcy in Tacoma will undoubtedly be a very hard and personal decision. Your individual circumstances may make the choice even more complicated and confusing. Perhaps you are concerned about your reputation and how this will make you look to others. Here are a few last things to keep in mind as you move toward a resolution. Only you can decide the best solution for your situation. You will only be able to file for bankruptcy every 7 years, so make sure that timing is considered. This will definitely have an impact on your future credit. A bankruptcy can stay on a credit report as long as ten years. All current credit cards you have will be canceled when the debt is extinguished. It will be extremely difficult for you to get a new mortgage right after a bankruptcy. During the process, you will be required to complete credit counseling and debt management courses. Once it is all done, you will be relieved of your debts and likely a lot less stressed.
Source : articlesbase.com
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