In Washington, bankruptcy is a viable option for claimants with excessive debts. The claims allow the consumers to pay a monthly payment instead of selling off their assets. The opportunity could help the consumer become debt-free. A local Bankruptcy Lawyer In Tacoma Wa assists consumers who want to file for chapter 13.
Meeting Income Eligibility Requirements
To qualify for chapter 13 bankruptcy, claimants must have an income that is higher than the median income in their area. The median household income for Tacoma is $51,269. However, the court calculates the median income for the claimant based on their household size. If they don’t meet the eligibility requirements, the claimant can file for chapter 7 only.
Identifying a Proper Payment Plan
The attorney helps the claimant create a payment plan to settle their debts. The plan must provide the claimant with an affordable payment option. The claimant pays one monthly payment that is distributed among their creditors. The court must review and accept the plan before the claimant is approved for chapter 13 bankruptcy. The creditors also have the right to deny the inclusion of their account into the claim.
Disposable Income Restrictions
All disposable income must be used to pay off all debts that weren’t included in the claim. The disposable income is calculated by deducting all household expenses and the bankruptcy payment from the claimant’s wages. The court monitors the claimant’s income and enforces the terms of the bankruptcy claim. A failure to follow the terms of the claim leads to a discharge of the claim.
Discharging Certain Debts
Certain debts are discharged in the bankruptcy claim. Unsecured credit card debts are the most common debts that are discharged in bankruptcy. Government-backed loans such as student loans or business loans aren’t discharged during bankruptcy.
In Washington, bankruptcy claims help consumers take control over their finances. The claims allow consumers to prevent legal action by their creditors such as foreclosure and repossession. Claimants must meet specific requirements to establish eligibility for the chapter. All terms of the claim must be followed at all times, or the court discharges the claim. Consumers who need more answers contact a Bankruptcy Lawyer In Tacoma Wa now.
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