People generally agree that when someone takes on various kinds of debts, that person should repay those debts as agreed. These obligations may include credit cards, personal loans and vehicle financing. Although the general viewpoint favors personal responsibility, people also generally have a negative opinion about strong-armed collection agencies and aggressive tactics. A Bankruptcy Lawyer in Tacoma WA can help when someone is overwhelmed with debt and collections calls, and cannot figure out how to proceed.
Chapter 7 and 13
There are two primary ways that individuals handle their financial obligations in a bankruptcy filing. Chapter 7 requires paying creditors as much as possible by liquidating a specified amount of assets. After this, the debts are discharged except for specific obligations like child support and student loans. Chapter 13, in contrast, involves setting up a repayment program that can last up to five years. It can still be tough to make those monthly payments, but more manageable than trying to pay the minimum due on several obligations every month.
An Automatic Stay
As soon as a Bankruptcy Lawyer in Tacoma WA makes the initial filing for the client, an automatic stay is granted by the court for most types of debts. This means all collection activity associated with those obligations is supposed to stop. Collectors typically do stop because the court can issue fines for contempt of court if they do not cease this activity. The bankruptcy attorney can inform the judge about what is going on, and the judge will not be too pleased that the court order is being violated.
Breathing Easier
The person has a chance to finally breathe easier as the seemingly endless phone calls finally stop. After a Chapter 7 filing is complete, the person may need some time to understand that he or she no longer owes anybody anything beyond what cannot be settled in bankruptcy. Several weeks may go by in which this individual feels anxious every time the phone rings. There may be similar feelings after filing Chapter 13 along with determination to make those monthly payments as arranged with the help of a lawyer such as Kevin G. Byrd, Attorney and Counselor at Law.
