Bankruptcy is the status of which a person cannot repay their debts to creditors. Bankruptcy allows people to get a fresh start. They can liquidate their assets or form a repayment plan. There are many forms of bankruptcy a person can choose from. If a person is unsure about what to do and is considering filing bankruptcy, they should contact a Bankruptcy Lawyer In Tacoma Wa.
Types of Bankruptcy
Chapter 7 bankruptcy is the most common type of bankruptcy. This type is straightforward and liquidates a person’s assets. There is no repayment plan for a debtor to pay. The debtor has some exempt properties such as a 401K, some vehicles, home equity and some household goods. Business owners can file chapter 7 or chapter 11 bankruptcy. Chapter 7 bankruptcy is where the owner of the business files a petition with the court and is assigned a trustee. The trustee will liquidate any nonexempt items in order to pay back their debt. Chapter 11 bankruptcy allows business owners to keep their business, but reorganize their debts.
Finding a Lawyer
A bankruptcy lawyer will guide the individual throughout the entire process. The lawyer will give the person the best options they have according to their situation. Many lawyers are able to offer repayment plans because the person filing bankruptcy is already in financial distress. It is important that the person filing bankruptcy finds a lawyer that is qualified and is recognized by the state bar. The individual can look up the lawyer on their state bar website. It is important that an individual use a Bankruptcy Lawyer In Tacoma Wa because bankruptcy has long-term financial and legal consequences. An individual can also file bankruptcy on their own, which is called filing pro se.
If an individual is filing bankruptcy and is not able to afford a payment plan with lawyers there are free legal services available. In some cases, if a person cannot afford a payment plan at all, they may qualify for free legal services through their state. Regardless of a person’s financial situation, it is advised that they leave filing bankruptcy to professional lawyers to ensure they are getting the best deal available to them.
