In Washington, bankruptcy could present the most effective option for consumers who are facing dire financial circumstances. These circumstances could lead the consumers to foreclosure or repossession of assets for which they owe a creditor. A Bankruptcy Lawyer In Tacoma Wa provides information about starting the process and avoiding a discharge.
Why is Credit Counseling Required?
The Bankruptcy Act of 2005 requires all consumers throughout the country to attend a credit counseling program before they can start any claim for bankruptcy. This requirement must be fulfilled no less than six months prior to any filing for bankruptcy. The courses introduce the consumers to strategies that show them how to manage their finances correctly to prevent the need for a new bankruptcy claim in the future.
How Does the Means Test in the Bankruptcy Act Work?
The court has a right to analyze the consumer’s income to determine for which chapter of bankruptcy the consumer is eligible. This requires the consumer to present information about their income for the last six months. The court determines the average income of the consumer based on this information and determines if the consumer’s income is above or below the state median for their household size.
What Documents are Required When Filing?
Aside from income statements, the consumer must provide information about any large purchases they’ve made in the two years prior to filing. They need an itemized list of all their debts whether they are secured by collateral or not, and they will need a list of all their assets including real property. Any loan documents, titles, and income tax returns for the previous two years are needed as well.
What are the Fees for Filing Bankruptcy?
Currently, the consumer can file for chapter 7 bankruptcy for about $306. They can acquire a chapter 13 claim for around $281. The fees for the chapter 7 bankruptcy can be waived initially; however, the consumer can pay it in installments.
In Washington, bankruptcy can provide assistance for consumers who have overwhelming debts that could present financial ruin. An attorney can help consumers determine which chapter is the most appropriate choice for them. Consumers who want to start a claim can contact a Bankruptcy Lawyer In Tacoma right now.
