Not being able to make payments is a frightening feeling for anyone living in the Puyallup WA, Lakewood WA, Sumner WA and Tacoma WA, areas. Initially, most people try to manage at least partial payments or make an effort to pay creditors on some type of rotational basis.
However, the longer people wait, the more challenging it can be to try to work with creditors. By talking to a bankruptcy lawyer early in the process, there are more options to consider and the possibility of being able to develop a plan that may even prevent the need for bankruptcy.
Chapter 7 Bankruptcy
When people have limited income and ability to pay back creditors, a bankruptcy attorney may recommend a Chapter 7 bankruptcy. This is sometimes called liquidation bankruptcy, and it is simple, effective, and it can be completed in a very short period of time.
Your Chapter 7 bankruptcy lawyer in Puyallup, Sumner, Lakewood or Tacoma, WA, will ensure you meet the requirement to file this type of bankruptcy. This includes a means test, which is administered by the Chapter 7 bankruptcy attorney to ensure the individuals qualify for this option.
Then, the attorney works with the individual to develop a list, correctly known as a schedule, of all assets and liabilities as well as current income and payments. There may be other documents required based on the specific case and the specific assets and properties owned or leased by the individual.
Additionally, the lawyer completes the documentation for the court as to the creditors and the amounts they are owned. It is important to talk to the attorney and be fully transparent in listing both assets and debts for both yourself and a spouse, 3even if he or she is not filing for bankruptcy.
Talking to a Chapter 7 bankruptcy attorney as soon as financial obligations cannot be met provides the greatest opportunity to work with the creditors and to explore your options.