In Washington, bankruptcy could provide consumers with a more effective method of eliminating their debts. The claims also stop immediate legal actions from creditors. The consumer could also rearrange their debts and pay them off through a more affordable payment plan. A Bankruptcy Lawyer In Puyallup Wa can provide answers to frequently asked questions about the cases.
What Type of Income Statements Do Consumers Need?
The consumers should release at least six months of income statements to their attorney. The statements make it easier to calculate their annual income and determine if they are eligible for chapter 13 bankruptcy. The standard median household income for the area is $47,269. However, when determining eligibility, the attorney identifies the median income based on the consumer’s household size. The consumer’s income must be greater than the median to qualify.
Who Determines if the Consumer Fulfills Their Obligations to the Bankruptcy Court?
The court monitors the payments submitted by the consumer to the bankruptcy court if a chapter 13 case starts. The consumer is required to submit a monthly payment that is determined by the court in their new payment plan. Any failure to submit the payments could lead to a discharge of their case. If it happens, the consumer is responsible for all debts included in the claim. After a discharge of the case, creditors can file legal action against the consumer.
Who Manages the Case During Liquidation?
If the consumer filed chapter 7, the court appoints a trustee to handle the sale of the consumer’s assets. The consumer never sells their assets themselves, and the funds go directly to the court-appointed trustee. The trustee pays the creditors according to the agreed upon values identified in the claim. Any exempted values from the assets are sent to the consumer after the debts are paid.
In Washington, bankruptcy claims offer the chance to set up a new payment plan or to liquidate assets through sales and auctions. The cases would prevent the consumer from facing foreclosure or repossession of certain assets. Consumers who want to start a claim can contact a Bankruptcy Lawyer In Puyallup Wa for more information now.
