A Bankruptcy Attorney In Olympia WA helps clients file for Chapter 7 and Chapter 13 programs. These are by far the two most common choices for individuals and married couples.
About Chapter 13
Chapter 13 functions as an extended repayment plan, combining all qualifying obligations into one more affordable monthly payment. This option can be considered debt consolidation. Mortgage arrears can be included in this program. The plan can be arranged to last up to five years. The applicant must have enough income to cover the monthly payment and all other general living expenses.
Understanding Chapter 7
Chapter 7, in contrast, requires liquidating many assets to repay creditors. Any outstanding amounts left afterward are discharged. The process is usually straightforward because most people do not have many assets left by the time they file for Chapter 7. It may be completed in as little time as three months, although some take as long as six months.
Credit Counseling Requirements
Washington State requires people considering bankruptcy to complete credit counseling within 180 days of filing the paperwork. In some cases, a person may want to file for bankruptcy as an emergency of sorts. A primary reason is to halt home foreclosure proceedings, at least temporarily. A Bankruptcy Attorney In Olympia WA can include a motion that explains why the credit counseling has not been completed. A motion also can be filed to request having this requirement waived.
An Emergency Filing
In this type of filing, the attorney sends the minimum amount of paperwork necessary to the court to get the process started. With Chapter 7, the client may still lose the house to foreclosure if arrears cannot be paid back in the time frame demanded by the bank. More time is gained, however.
Depending on the type of legal service provided, lawyers may offer free initial consultations. That’s typically the case with bankruptcy filings, since an attorney such as Rafal Gorski understands that these men and women are struggling financially. Some would have trouble coming up with the money for a consultation. The lawyer wants to make the process as stress-free as possible.