Important Aspects to Understand About Bankruptcy Protection Under Chapter 7 in Olympia, WA

by | Mar 26, 2019 | Lawyer

Chapter 7 in Olympia WA is the most common type of personal bankruptcy filing. Another option is Chapter 13, but that requires making a consolidated monthly payment that is distributed to all creditors in this consumer’s arrangement. By the time most people declare bankruptcy, they would have a very hard time covering that payment each month in addition to their current ongoing obligations and essential expenses.

Discharged Debts

Credit card and loan debt, other than that for student loans, is discharged after filing for Chapter 7 in Olympia WA. The person cannot cancel out back payments on a vehicle or a home, however, unless he or she is willing to risk repossession and foreclosure. After vehicle repossession because of bankruptcy, the individual no longer has to pay the financing company the balance owed. The same is true with foreclosure even if a large amount is still owed on the mortgage.

Starting Over

These situations can be extremely difficult and make the person feel like everything has been lost. Yet this is an ideal time to start over with finances and rebuild credit. Finding a more affordable place to live is a significant first step. Acquiring a prepaid credit card or a small bank loan secured by a cash deposit are early steps toward improving the credit score.

International Concerns

Sometimes international concerns apply. For instance, a U.S. citizen who owes money to a foreign organization typically can have that debt canceled in addition to the U.S.-based ones.

In addition, legal immigrants to this country are eligible for bankruptcy even if they are not permanent residents. They may be in the United States on Visa status and not with a Green Card. However, it’s possible that declaring bankruptcy could have a negative impact on the person’s future efforts to become a permanent resident or a citizen. This is a crucial point that must not be ignored.

Free Consultations

Anyone who is considering declaring bankruptcy but is not sure whether this is the right move may schedule a free initial consultation with a lawyer such as Rafal Gorski. During the consultation, important questions are answered and the individual can make an informed decision.

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