In Washington, consumers may choose to undergo liquidation to settle their debts quickly. The process takes about six months to complete and requires the court to assign a trustee to manage the sale of all assets that weren’t exempt. A Cheap Bankruptcy Lawyer In Puyallup Wa can provide answers to common questions consumers have about these cases.
What Debts are not Discharged Through Chapter 7?
The consumer cannot acquire a discharge for child support or alimony payments through a bankruptcy claim. They also cannot seek a discharge for federal student loans, income tax requirements, and any major purchases placed on credit cards such as automobiles. The liquidation process can discharge unsecured credit card debts that don’t include the purchase of these assets.
What Does Reaffirmation of Debt Mean?
This is a written statement that the consumer must sign that identifies all debts that they owe and are responsible for paying in full. Once the agreement is signed, the consumer takes full responsibility for each debt identified, and they cannot seek liquidation claims to eliminate any of these debts for eight years.
Can the Consumer Get Involved in the Sale of Their Assets?
The only involvement that the consumer can have in the sale of their assets is to purchase the property themselves. This is a strategy that is used to eliminate a higher volume of debt by purchasing a property at the auction value instead of what is owed to a mortgage lender. It can also help a consumer regain their home after a foreclosure attempt.
When Do Consumers Receive the Exempted Value?
The consumer receives the exempted value applied to their assets at the end of the bankruptcy claim. The accumulated proceedings generated from the sale of their property is used to pay off their debts. They won’t receive any funds immediately after the sale of each property.
In Washington, consumers select chapter 7 to pay off their debts as quickly as possible. These opportunities help the consumer to manage a higher volume of debt in around six months. Consumers who want to start these claims contact a Cheap Bankruptcy Lawyer In Puyallup Wa today.