In Washington, a bankruptcy claim provides consumers with a multitude of benefits that help them manage outstanding debts. The process requires the claimant to follow specific steps based on the bankruptcy chapter they select. A Bankruptcy Attorney In Tacoma Wa follows certain steps when managing these claims.
Verification of the Consumer’s Income
The attorney must verify the consumer’s income by reviewing six-months of income statements, and they contact the employer identified for additional verification. The income statements help the attorney identify the consumer’s annual income based on their current earnings. Their income could determine eligibility for certain bankruptcy chapters such as chapter 13. The consumer’s income must be higher than the average annual income for their household size.
Validation for All Debts
The attorney contacts the creditors to verify all debts listed by the consumer. They also determine when these debts were charged off or sent to collections. Some statute of limitations may apply to specific debts such as unsecured credit card accounts and consumer loans. If the statute of limitations has expired, the consumer isn’t responsible for the debt, and the creditor cannot take any action.
Identify the Appropriate Chapter
The appropriate bankruptcy chapter reflects the current circumstances that apply to the consumer. If they have extensive assets, they can choose chapter 7 to settle the debts right now. The proceeds from the sales could eliminate the debts quickly. However, if they qualify for chapter 13, it could be the more appropriate choice for increasing the amount of time available to settle the debt.
Start the Claim Based on Applicable Laws
After the attorney completes the above-mentioned steps, they file the claim through the court and wait for an appointment for the meeting of the creditors. The consumer must follow all stipulations for their bankruptcy claim.
In Washington, a bankruptcy claim offers the chance to liquidate assets or start a new payment plan. The cases help consumers repay their debts without facing immediate legal action by creditors. The consumers could eliminate a large volume of debt quickly and effectively. Claimants who need further details about their cases contact a Bankruptcy Attorney In Tacoma Wa right now.
