In Washington, bankruptcy for some consumers is a last desperate plea to prevent them from losing everything. For these consumers, they have accumulated large sums of debt. The debt is much higher than their monthly income and presents a major issue for consumers trying to pay it off. The following are details about what to expect from a Bankruptcy Attorney In Tacoma Wa.
A Complete Credit Assessment
An attorney can complete a credit assessment to determine how to manage the consumer’s debt. They determine which chapter of bankruptcy is available to the consumer and which chapter provides the most benefits. They also assess the eligibility for all chapters to see if the consumer qualifies for their preferred choice.
Review of All Options
The attorney reviews all options that are available to the consumer. For instances, in some cases, the debts could become more affordable if the consumer acquires a loan modification. With a mortgage home loan, there is still a possibility of unethical lenders providing funds to low-income consumers. In most cases, the lender didn’t establish affordability for the consumer first. This provides an open window to start negotiations.
Mitigation of Foreclosure or Repossession
In bankruptcy, all consumers receive an automatic stay. This stay prevents legal action by creditors to seize property covered by a loan. This includes the foreclosure process as well as repossession. With the automatic stay, the consumer can continue to drive their automobile or live in their home without worry.
Identifying Ways to Rebuild the Credit
The attorney can also introduce the consumer to programs that help them rebuild their credit. For example, they can open a small line of credit and make timely payments to improve their credit score. Some lenders can set up an automatic draft so that the payments are deducted straight from their checking account.
In Washington, bankruptcy is an option for managing large volumes of debt quickly. With chapter 7, they liquidate assets to pay off these debts in up to six months. Chapter 13 provides a repayment plan that lasts up to five years. Consumers who need help with debt contact a Bankruptcy Attorney In Tacoma Wa to schedule an appointment.
