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Stop All Lawsuits and Repossession Actions
Lawsuits and repossessions can be overwhelming experiences for even the most resilient individuals. If you are struggling with debt in Vancouver, Washington, these kinds of legal actions from your creditors can threaten your financial stability. Fortunately, bankruptcy may offer a solution to stop these actions immediately.
Consulting a Vancouver bankruptcy attorney can help you determine the right course of action for your situation.
How Bankruptcy Stops Lawsuits and RepossessionsAs soon as you file for bankruptcy in Clark County, it triggers an automatic stay (11 U.S.C. §362), which stops the following:
- Lawsuits: Your creditors can’t proceed with any legal claims, including wage garnishments and debt collection lawsuits.
- Repossession: Your lenders must stop seizing vehicles or other secured assets.
- Foreclosure: Mortgage companies can’t proceed with any foreclosure proceedings.
- Wage Garnishment: Any new or ongoing wage garnishments must stop.
The automatic stay remains in place for the entire duration of your bankruptcy case, unless the creditor successfully petitions the court to lift it.
Chapter 7 vs Chapter 13 BankruptcyYou must have a good understanding of which bankruptcy type fits your situation.
Chapter 7 BankruptcyThis type of bankruptcy, also known as a liquidation bankruptcy, eliminates most of your unsecured debt, like credit cards and medical bills. Chapter 7 can give you a financial reset by discharging all eligible debts you have within three to six months. However, some of your assets may be sold off to repay your creditors.
- Eliminates most unsecured debt
- Stops repossessions and lawsuits immediately
- Might not protect secured property unless exemptions apply
- Usually done within six months
Washington State exemptions can be found in RCW 6.15.
Chapter 13 BankruptcyCommonly known as a wage earner’s plan, it allows you the chance to propose a repayment plan so you can pay your debts off over a three- to five-year period. If you complete the repayment plan, the remaining eligible debt is discharged. Unlike in Chapter 7 bankruptcy, you don’t have to sell your assets in Chapter 13.
- Allows for repayment over three to five years
- Prevents repossession and foreclosure by restructuring payments
- Suitable for those with a steady income who wish to keep their assets
Your Vancouver bankruptcy attorney can assess your financial situation and help you determine which bankruptcy chapter is right for you.
Repossession Laws in Washington StateWashington State has laws in place to protect you when facing a repossession.
- RCW 62A.9A-609: Creditors can repossess a vehicle without court approval, but they can’t breach the peace when doing so.
- RCW 62A.9A-623: You have the opportunity to redeem your vehicle before it is sold by paying the full balance.
- RCW 62A.9A-625: If a lender violates repossession laws, you may be entitled to damages.
If you are sued in Clark County, your creditor may obtain a judgment against you, which can lead to wage garnishments or even bank levies.
- RCW 6.27.150: This limits wage garnishments to 25% of your disposable earnings.
- RCW 6.27.020: Creditors have to provide you with a notice before garnishing wages.
- RCW 6.15.010: Some income, like Social Security, is exempt from garnishment.
Filing for bankruptcy in Vancouver will immediately stop wage garnishments and may even eliminate your underlying debts. Your bankruptcy attorney can walk you through the process.
The Impact of Bankruptcy on Your Credit ScoreFiling for bankruptcy will affect your credit score, but it can also provide you with the chance at financial recovery. While a bankruptcy filing stays on your credit report for 7 to 10 years, you can see your scores improve within a year as you eliminate your debt and start rebuilding your credit responsibly.
Alternatives to Bankruptcy in VancouverBefore filing, you may also want to consider any alternatives there are for your situation.
- Debt Settlement: Try negotiating with your creditors to reduce the amount you owe.
- Debt Consolidation: You can combine multiple debts into a single, manageable monthly payment.
- Credit Counseling: You can seek professional advice on budgeting and repayment plans.
If these options don’t seem like a good fit for you, bankruptcy may be the right way to protect your assets and financial future.
FAQs Regarding Lawsuits and Repossession Actions in VancouverCan You Keep Your Car in Bankruptcy?
In Chapter 7, you can keep your car if it falls under Washington’s vehicle exemption. In Chapter 13, you can catch up on your missed payments to prevent a repossession.
Will Bankruptcy Remove a Judgment Against You?
Yes. Chapter 7 can discharge judgments related to your unsecured debts, while Chapter 13 allows for structured payments that potentially reduce what you owe.
What Debts Aren’t Eliminated by Bankruptcy?
Bankruptcy doesn’t eliminate any criminal fines, child support, or most student loans. However, it can stop lawsuits for unpaid debts.
Can Creditors Challenge the Automatic Stay?
Yes, creditors can file a motion to lift the automatic stay if they have valid grounds, such as a secured loan in default. Your bankruptcy attorney can help you respond to these motions.
Will Bankruptcy Stop an Eviction Lawsuit?
It depends. The automatic stay can temporarily stop the eviction, but if your landlord already obtained a judgment for possession, the bankruptcy might not be enough to prevent the eviction.
What If Your Car Was Already Repossessed Before Filing?
If your car was repossessed but not yet sold, Chapter 13 bankruptcy might allow you to get it back by restructuring the missed payments.
How Do You Start the Bankruptcy Process?
The first step is consulting a skilled Vancouver bankruptcy attorney. They will guide you through the filing process, stop all legal actions against you, and protect your assets.
Why You Need a Skilled Vancouver Bankruptcy Attorney in Your Corner
It can be tough to navigate these complex bankruptcy laws and processes. One of our skilled Vancouver bankruptcy attorneys can step in and assess your financial situation, file all the necessary paperwork, and defend you against creditor challenges. Proper legal representation ensures your rights are protected throughout the entire process. So, don’t hesitate to consult our attorneys. Filing for bankruptcy can offer immediate relief if you’re facing lawsuits or repossession in Clark County.
