The purpose of the 2005 Bankruptcy Reform Act was to establish the guidelines and criteria for what kind of financial situation a person must be in if they want to qualify for filing Chapter 7 bankruptcy. Understanding whether or not your situation qualifies for filing Chapter 7 should start by calling a Bankruptcy Lawyer in Tacoma, WA for help. A bankruptcy attorney such as Rafal Gorski would be able to evaluate your individual situation, review all of your debts and assets, and decide whether or not you quality to file Chapter 7.
Chapter 7 Tacoma WA is commonly referred to as a number of different names including the fresh start bankruptcy. This is because all of your unsecured debt is going to be cleared. Car loans, medical bills, house loans, and credit cards would all be examples of unsecured debts that would be wiped away. Naturally, there are some debts that even Chapter 7 cannot touch. The Bankruptcy Lawyer in Tacoma, WA that you contact would be able to go over your debts and determine if you have any that would not get erased. These debts would include things such as: secured credit cards, student loans, child support, and alimony.
During the process of filing for Chapter 7, you are going to have to settle with your creditors. This means that some of your assets will be liquidated in order to pay off some of the debt that you owe. The goal is to pay off as much of the debt as possible so the creditors are not out tons of money. Once the liquidation is done, any debt that remains will be cleared in most cases.
Chapter 7 is the most commonly filed type of bankruptcy because most people would rather just have their slate wiped clean so they can start over. Unfortunately, not everyone that wants to qualify for Chapter 7 actually does. You must be viewed as a person that is in more debt than what one person can believably pay off. The judge who decides whether or not to allow you to file will look at any money you have saved, your income, and your bills to determine whether or not you should be able to pay off your debt. If you do not qualify it does not mean you cannot file, it just means you need to file Chapter 13 instead.
