Tacoma residents have entered a turbulent period of financial uncertainty with rising costs. These circumstances can unpredictably impact personal finances, and currently 14% of Washington residents have delinquent debt. Sadly, things aren’t looking to get better soon as the entire country, and even neighboring nations, are looking at a period of flux. This can land Tacoma residents in an unexpected financial crisis through no fault of their own.
It’s no surprise then that this kind of trouble can be more than people can handle, and they need debt relief. Our financial law attorneys can help here. We’ve got over 30 years of combined legal experience helping people all over Washington State. We can provide guidance on coming to terms with debt and managing it. Our bankruptcy attorneys in Tacoma are ready to provide the legal and financial guidance to get people out of trouble.
It’s not only the wealthy who get help from a bankruptcy or debt relief lawyer in Tacoma. Our team is ready to give free consultations to anyone who asks, assessing situations and seeing how to help. We are knowledgeable and empathetic, and we want to set things right for the people who come to us.
How Many Debt Solutions Are There?In the same way that every person is unique, with individual characteristics, the same is often true of the financial problems people face. Anyone in any economic class can face unmanageable debt. Our Pierce County debt attorneys can talk about your debt issue, assess it, and look at the various debt relief options available, such as:
Our team of bankruptcy lawyers has the knowledge and experience to create a custom plan to address your financial problems and bring them to a close.
Should You File For Bankruptcy Washington State?Many people are aware that bankruptcy may occur when people are in debt, but that doesn’t mean it happens to everyone in that situation. There are financial and legal criteria at both state and federal levels that allow people to file for bankruptcy. Here are the requirements for the two most common types.
Tacoma Chapter 7 Bankruptcy RequirementsWhile many people know the term to “go bankrupt,” they may not be clear on what bankruptcy actually is. Bankruptcy is a form of financial protection for people with unmanageable debt when repayment becomes an insurmountable challenge. If there’s no way to pay it back on your own, there may be a need to just start over fresh. Filing for a Chapter 7 Bankruptcy is often the first step in that journey.
Chapter 7 Bankruptcy is sometimes called “liquidation bankruptcy” because of the extremes it can go to in paying back unsecured debt, or loans with no collateral. This liquidation process can be very aggressive, but Washington State law does offer some legal protections. Some exemptions, for example, can protect important belongings like a home, car, or other critical assets. Our Pierce County bankruptcy attorneys can take you through the eligibility requirements and run a means test to see whether you qualify for a Chapter 7 bankruptcy.
Chapter 7 Bankruptcy Might Be Right For You IfSome people who run into debt problems still manage to hold onto a steady paying job or have access to a reliable source of revenue. For people in this position, Chapter 13 Bankruptcy may be a better but slower solution to seeking debt relief. This type of bankruptcy is nicknamed the “wage earner’s plan” due to its requirement of a salary for a greater amount of flexibility.
Unlike Chapter 7, Chapter 13 doesn’t employ scorched earth tactics on assets. Instead, it structures a debt repayment plan usually timed between 3-5 years. While this doesn’t reduce or eliminate debt quickly, it does give you time to get it under control. However, like Chapter 7, it can also effectively halt other financial procedures like foreclosure or car repossession. Our Pierce County bankruptcy attorneys work with you to see if you qualify for Chapter 13 bankruptcy under Washington State law.
Chapter 13 Bankruptcy Is Your Solution If:
You can verify access to a salary or other revenue stream capable of monthly payments.
You need time to make up missed mortgage payments on a foreclosure.
Your income exceeds the limits of the Chapter 7 bankruptcy means test.
You have debts not covered by a Chapter 7 filing, like child support or tax debt.
Our Tacoma Bankruptcy Attorneys Can Make It RightWashington State, and America in general, are now in a state of financial flux. You could be a single, affluent club habitue looking to enjoy fine wine and piano performances at Keys on Main or a creative family looking to expand the little ones’ minds at the Children’s Museum of Tacoma; debt can hit you unexpectedly, leaving you in fear, uncertainty, and doubt about the future.
However, this is no reason to panic. Pierce County offers a lot of opportunities for residents, whether you’re living in Tacoma itself or outside Bonney Lake. There are always alternatives to consider, such as retraining by going back to school at Pierce College or maybe even just going back to the financial basics with a refresher in personal economics from Sound Outreach financial coaching.
The important thing is not to panic but to take some time to plan and review your options. Take the time to appreciate what Washington State offers. Discover what your priorities are and what things you really want to do and see in the Pacific Northwest, and this can help you define and align your goals. And remember, if you find yourself struggling with debt, you don’t have to do it alone. Our Tacoma financial law attorneys are ready to help and are available for free consultations.
Frequently Asked Questions For Our Tacoma Bankruptcy LawyersWith more than 30 years of experience in Washington State, our Tacoma bankruptcy attorneys dealt with a lot of people who had questions about debt. Here are the more common ones we were asked:
A: Yes, bankruptcy filing enacts an automatic stay, which halts other proceedings, giving you more time.
A: This depends on the type of filing. You might be able to keep it if you create a new payment plan under Chapter 13, but with Chapter 7 filing, the car may be sold to recover some debt.
A: Yes, some older tax debts might be discharged, but it depends on the type of tax and circumstances with the IRS.
A: This also depends on the type of bankruptcy. A Chapter 13 bankruptcy may protect co-signers with the right payment plan. A Chapter 7 bankruptcy, however, may leave co-signers liable for the debt.
A: A bankruptcy filing in Pierce County creates an automatic stay that pauses other procedures while the case is evaluated.
A: Gather the required financial records, take and complete a state-approved credit counseling course, and file the bankruptcy petition with the court.
A: No, bankruptcy can be filed as many times as you need, but after a fixed interval. Chapter 7 bankruptcy can be filed every eight years, while Chapter 13 can be filed every two.
A: Payday loans are unsecured debts, so either a Chapter 7 or Chapter 13 bankruptcy filing can discharge them.
A: Medical debt is considered unsecured debt. Chapter 7 bankruptcy can discharge this debt. Alternatively, Chapter 13 filing can work it into a payment plan.
A: Your credit rating will need to be rebuilt. Other means of payment, such as a secured credit card and actions monitoring your spending, are strategies to do this.
Tacoma residents getting into trouble with credit card debt aren’t alone. Many in the USA are facing rising debt, which includes credit cards. This isn’t looking to get any better due to incoming financial turbulence. Economic variables like inflation, interest fluctuations, and fee hikes can quickly escalate credit card debt to a point where people lose control. There are, however, legal solutions to help people regain that control. Talking with our Tacoma bankruptcy attorneys can often lead to a way out of these situations.
However, debt is not always a circumstance where you are the only one exerting influence. Third parties, such as debt collection agencies, can sometimes get involved. Collection agents might use questionable or even threatening tactics, but they don’t have that right. The Fair Debt Collection Practices Act (FDCPA) lays out what rights you have even with debt. There are also some Washington State statutes of limitations that may classify your debt as unenforceable. Tacoma bankruptcy lawyers can put a stop to harassment or even challenge the debt collection to give you a chance at recovery.
Pierce County Foreclosure Attorneys Keep You In Your HomeFor the majority of Tacoma residents, a home is both the largest investment and the most important belonging in their lives. That’s why it’s the ultimate anxiety when there’s a threat of having it taken away. Unfortunately, foreclosures are a legal procedure to do just that, but Pierce County foreclosure attorneys can fight it. Legal countermeasures like filing for bankruptcy, loan modifications, and other tactics can halt foreclosures and protect homeownership. Washington State also has laws in place restricting lenders to specific procedures when foreclosing. Our team of Tacoma financial attorneys can confront these groups to protect your rights and keep you in your home.
Drowning In Medical Debts In TacomaThe United States has the good fortune to offer the best medical treatment in the world. However, for those without health insurance from an employer, the cost of that treatment is prohibitive and can easily spiral into medical debt. It just takes one emergency, surgery, or a diagnosis of a lifelong condition requiring treatment to up-end personal finances completely. Should this happen, places like St. Joseph Medical Center or Allenmore Hospital may even send collection agencies to recover unpaid bills, which could dramatically impact your credit rating. If you’re facing critical medical debt, our Tacoma financial attorneys can help devise legal responses like:
Banks can give out loans, but they’re not the only ones. Businesses like MoneyTree offer “Payday Loans” that they market as an “advance” on your paycheck. These seem good, with no credit checks and very fast approval, but it’s all tethered to high interest rates and many fees that can rapidly trap you in a debt cycle. As that cycle progresses, growing expenses may vastly exceed the original loan amount, putting people in giant amounts of debt. Some people get trapped in this for years as paychecks vanish into more loans, more fees, and overdraft fees that take over personal finances. Pierce County bankruptcy lawyers put a stop to this and give people a chance to get back on track.
Tacoma Bankruptcy Attorneys Can Fight Vehicle RepossessionsIf you start missing payments on a car loan, that vehicle is at risk of being taken back. However, even once this process has started, you can stop it. Tacoma bankruptcy lawyers have legal countermeasures to retain a car, even after a repossession. If this is happening to you, or you’ve been notified it may be coming, our team of Tacoma financial attorneys can help you to keep your car.
Put An End To Creditor HarassmentCreditors who are owed money have a right to try to collect payment, but some tactics employed for this are illegal. Sadly, some collection agencies and their staff rely on the ignorance of debtors who assume if they are being treated this way, it must be legal. The truth is, even in a debt situation, you have rights that must be upheld. Talk to a Tacoma debt attorney immediately if any of this has happened to you:
Tacoma bankruptcy lawyers can enact cease and desist letters, start lawsuits for damages, and other legal strategies to put a stop to illegal harassment.
Fighting Lawsuits & Debt Collection In Pierce CountySometimes, creditors will take the legal route of trying to sue you to get the money owed. This is the one time when a litigation attorney is not necessarily the best choice. Instead, consult with a financial law or bankruptcy attorney. Our teams in Pierce County have the experience to help with the following:
If a financial crisis has put you in trouble with debt, we can help. Tacoma bankruptcy lawyers in Pierce County have the experience, expertise, and empathy to help you overcome debt. Contact us today.
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Filing a bankruptcy provides immediate relief to someone who is overwhelmed by debt. As soon as a bankruptcy is filed, it is illegal for creditors to even ask for a payment. All lawsuits, garnishments, foreclosures, phone calls are prohibited – even just sending a statement is illegal.
The idea of bankruptcy is to give someone who has gotten in over their head with bills a financial fresh start. It is better to allow someone who suffered an unpredictable misfortune, or simply miscalculated, a way out of financial disaster and a way forward to a life where they can continue to be productive, have dignity and take care of themselves and their family.
Know your Rights in BankruptcyJust knowing about your rights in bankruptcy can help improve cash flow as you get ready to file your case. Knowing that you can eliminate a lot of your debt arms you with the knowledge to decide what bills to pay for now.
Bankruptcy also provides a civilized way for creditors to deal with the fact that a debtor is not able to pay their debts. If a debtor has some way of paying back at least part of their debts, then bankruptcy laws determine how much is fair. Bankruptcy laws divide the money up fairly among creditors and leave the debtor enough to live a productive and dignified life. Some property can be taken in bankruptcy but the laws define what property is exempt from being taken to give the debtor an effective fresh start. Bankruptcy provides standards for income and expenses to determine whether a debtor is making their best efforts at payment a creditors back. The bankruptcy laws also sets out priorities for various kinds of debt to determine which creditors get paid first, if creditors get paid anything. The law also defines what kind of debt can not be discharged, or cancelled, in a bankruptcy at all. Examples of debt that can not be discharged are student loans, recent back taxes, back child support or spousal maintenance and government fines.
Chapter 7 BankruptcyChapter 7 bankruptcy is for people who do not have the income to pay at least some of their unsecured debt. Chapter 7 does allow a debtor to continue paying secured debt, such as a mortgage or a car loan, while totally wiping out unsecured debt, such as credit cards of medical debt. Unsecured debt is debt that is not backed up by collateral. If you make over the median income for your household size, you have to go through a means test to determine whether you are abusing the bankruptcy system by filing a Chapter 7. The means test takes an average of your last six months income and deducts secured debt payments, certain actual expenses such as taxes, health insurance or day care and certain expenses with limits set by the IRS regulations, such as food, clothes, rent and transportation. If the test shows money left over for unsecured debt, you may have to file a Chapter 13. Otherwise, the only way unsecured creditors get paid in a Chapter 7 is by liquidating assets. Most people who file a Chapter 7 do not have assets that are not covered by exemptions.
Chapter 13 BankruptcyA Chapter 13 bankruptcy is a repayment plan that lasts three to five years. If you go through the means test and it shows you have the ability to pay some unsecured debt, the Chapter 13 plan consolidates a payment for that unsecured debt with payments on secured debt, such as back mortgage payments or car loans and priority debt like back taxes. The percentage the unsecured creditors receives is based on how much you can afford.
Sometimes you may want to file a Chapter 13 even if you pass the means test, such as when you are behind on a mortgage or owe the IRS a lot of back taxes, to name a couple examples. You can also pay car loans in a Chapter 13 plan. A car loan is spread out over five years and the interest can be reduced, which lowers the monthly payment in most cases. If you purchased your car over two and a half years ago, you can pay the value of the car through the plan and pay what’s left of the loan as unsecured debt. It is possible to pay as little as 0% to your unsecured creditors if that is what the means test shows or you can convince the court that you can not afford more.
In both Chapter 7 and Chapter 13, if the means test shows that you have the ability to pay creditors, you may be able to dispute that by showing that there are special circumstances in your case. Examples of special circumstances would be having an additional child or a sudden drop in income. Because the means test only looks at income going back six months and tries to predict the ability to pay over the next three to five years, it is imperfect to say the least. A good attorney can convince the bankruptcy court that the means test should not apply in cases where that is genuinely the case.
Overall, bankruptcy is designed to be fair to you and your creditors. You can keep the property you truly need for a fresh start through exemptions. The means test is complicated and, though it is important, can often just be a jumping off point that an experienced attorney can modify with skillful arguments.
Bankruptcy Resources for Tacoma Washington Residents