Stop Repossessions

Did you know there are legal solutions available to you if you are dealing with lawsuits and repossession actions in Olympia, Washington?

Whether you live in Thurston County or elsewhere in Washington State, filing for bankruptcy is just one way you can stop lawsuits, creditor harassment, and repossession actions against you.

Hiring a skilled Olympia bankruptcy attorney is a great first step when you are otherwise feeling lost and helpless. They can walk you through the process from start to finish and ensure you reach a favorable outcome.

Filing for Chapter 7 or Chapter 13 bankruptcy may be the solution you need to stop lawsuits and repossessions.

• Chapter 7 involves liquidating non-exempt assets to pay off creditors.
• It is ideal for individuals with significant unsecured debt and limited income.
• An automatic stay goes into effect immediately upon filing, stopping lawsuits and repossession actions.

• Chapter 13 allows individuals with regular income to create a repayment plan for their debts, usually over 3 to 5 years.
• It can be particularly helpful for stopping repossession actions, as it allows you to catch up on overdue car payments or mortgage payments as part of your plan.

The automatic stay (11 U.S.C. § 362), a federal law provision that begins as soon as you file for bankruptcy, immediately stops most creditor actions, including lawsuits and repossessions.

It can provide much-needed relief as you find ways to resolve your financial situation without the added pressure of legal battles looming over you.

• Immediate halt to lawsuits: No creditor can continue to pursue legal action after you file for bankruptcy.
• Stopping wage garnishments: Creditors are prohibited from garnishing your wages or freezing your bank accounts.
• Repossession halt: If a creditor is attempting to repossess your vehicle or property, they must stop until the court allows them to proceed.

While this statute (RCW 11.40.010) addresses the legalities of judgment liens in Washington, it also plays a big role in how liens can be handled in bankruptcy cases. When you file for bankruptcy, the automatic stay can help remove or reduce the effect of judgment liens on your property.

Washington has specific laws that can impact your bankruptcy case. Understanding how these laws can help ensures that you are aware of your rights and protections.

When you file for bankruptcy in Olympia, you can exempt some of your property from liquidation.

• Homestead Exemption (RCW 6.13.030): You can exempt up to $125,000 in equity for your primary residence.
• Washington State Collection Agency Act (RCW 19.16): This chapter governs debt collection practices, including repossessions. While it doesn’t directly stop repossession actions, it lays out guidelines on the proper procedures creditors must follow when collecting debts, including repossessions.
• Repossession of Collateral (RCW 19.16.250): This establishes the legal processes for repossession in Washington, outlining how creditors can repossess your property and how you can contest or redeem your property.
• Personal Property Exemption (RCW 6.15.010): Up to $3,500 in personal property, including clothing, furniture, and household items, is exempt.

Filing for bankruptcy strengthens your protections under the laws by stopping collection efforts, including lawsuits and repossessions, for the duration of your bankruptcy case.

Your Olympia bankruptcy attorney will prove to be a big asset as you wade through the ins and outs of the process.

• Deeds of Trust (RCW 61.24): This statute outlines foreclosure procedures in Washington. If you're behind on your mortgage payments, your creditors can initiate foreclosure proceedings. However, a homestead exemption can help protect your property if the equity is within the exemption limits.
• Notice of Default (RCW 61.24.030): This statute requires a notice of default before a lender can begin foreclosure proceedings, allowing you to address the situation or choose to file for bankruptcy.
• Foreclosure Process (RCW 61.24.040): This statute describes the legal process involved in foreclosure proceedings.

Olympia bankruptcy attorneys provide invaluable assistance with overwhelming debt. We know Washington State laws and can guide you through all of the complexities. Count on us to protect your assets, end creditor harassment, and stop foreclosure and repossession actions.

By offering advice based on your situation and advocating for your financial well-being, our attorneys can help you regain control of your finances and offer you a path to the fresh start you need.

Like any attempt to collect a debt, repossessions stop the instant a bankruptcy case is filed. The only repossession a typical debtor needs to worry about is a car repossession. Creditors can take a car right off the street if the borrower is behind on their payments. However, creditors usually wait until the loan is at least two months delinquent to come get the car. Creditors can not breach the peace or break into a locked garage to take the car but otherwise they can take the car wherever they can find them. After the car is taken, it is stored for a couple weeks at a car lot and sold at auction. A debtor can get the car back if the bankruptcy is filed before the car is sold. However, a Chapter 7 will only delay the process for as little as a month if the payments are not made. A Chapter 13 gives the debtor an opportunity to get caught up over five years without having to come up with the entire default all at once.

If you are having trouble making a car loan it is best not to wait until the last minute to file bankruptcy to protect the car. You will need to pay attorneys fees, take a credit counseling class and pay part of the filing fee before you file the case. You will also need time to meet with your attorney and get the necessary documents together. You can see a repossession coming and it’s best to stop the process before it becomes an emergency. Cars can be damaged when being repossessed and the belongings inside them can be lost. Being left suddenly without a car can be a real hardship. If you are falling behind on bills and bankruptcy is inevitable, it’s better to make car payments and fall behind on credit card debts while getting ready for bankruptcy. If you are about to file bankruptcy and you think your car is about to be repossessed, keep it somewhere where the creditor can not find it.

If you are making payments on an appliance, jewelry, electronics, furniture, etc., the creditor can’t just come into your house to take the property back. They must go through an expensive lawsuit to get an order allowing the sheriff to recover the property. It is extremely rare for them to do so and they will usually try to garnish wages or bank accounts instead.