Bankruptcy law is very complex; the smallest of errors in filing can be devastating for the end result. Courts are not tolerant of errors; the smallest one can cause the case to be dismissed or the bankrupt to lose assets that otherwise he would have kept. A good bankruptcy lawyer in Tacoma WA will not let this happen, he will guide the bankrupt through the whole process.
There are a couple of different ways to declare bankruptcy, the lawyer, having many functions throughout the process, will explain both Chapters 7 and 13 and suggest which might give the best relief under the circumstances.
Bankruptcy explained:
Prior to filing for bankruptcy, most people have very little knowledge of the procedure. People are aware of bankruptcy and they know it has something to do with helping them eliminate their debt, but they do not know the options that are available and the consequences of these options. A bankruptcy lawyer Tacoma WA may even suggest that debt settlement would be a better course of action than declaring bankruptcy. If debt settlement appears to be the favored approach, many lawyers can assist in developing a program.
Determine which bankruptcy is best:
For the individual and small business owner there are two different approaches to bankruptcy, Chapter 7 and Chapter 13. The both have their own unique benefits but every set of circumstances is different and as a result, one is always more beneficial that the other.
* Chapter 7: is also referred to as straight bankruptcy and requires liquidation of assets. The bankrupt agrees to selling whatever assets he may have and splitting the proceeds from the sale amongst the various creditors. Not all assets have to be sold, the debtors home, automobile and his personal effects are exempt. If, after the targeted assets are sold, the monies available are not sufficient to wipe out the total debt, the debt is discharged. The process of declaring Chapter 7 is relatively short lived and almost all unsecured debt can be eliminated.
* Chapter 13: is called debt adjustment bankruptcy; it is debt consolidation under court mandate. All the debts are totaled and then once a month the debtor pays an agreed upon sum to the court administrator, who in turn makes payments to the creditors. Usually the process is three years in length, but can go as long as five years. Regardless of the time frame, once it is over all debts are considered as settled. People who have steady cash flow and significant assets will usually choose Chapter 13.
