You may feel hopeless, and at the mercy of a faltering economy, but don’t despair. Relief is available, and there is no shame in using the law to protect yourself when you are buried under a pile of debt. You aren’t responsible for the economy, and you didn’t create the mortgage crisis. So use the law to protect yourself and your family.

A Second Chance

Bankruptcy laws are in place to help Americans get a second chance when they are snowed under by economic pressures. You have rights, including the right to be free from harassment by creditors. If your creditors are hounding you, you can make them pay. And if your debt has become more than you can manage, you may be able to file for bankruptcy.

In Chapter 13 bankruptcy, you propose a repayment strategy to your creditors, and it generally lasts 3 to five years. It provides to pay all or part of your financial obligation from any future income you make. You can utilize Chapter 13 to make up missed out on automobile payments, pay back taxes you owe, avoid a bank from foreclosing on your house, keep non-exempt residential or commercial property that you deem important, stop interest from gaining on your tax financial obligation, and far more. When you follow the regards to your contract to repay your financial obligations, all your staying dis-chargeable financial obligations would be released at the end of the payment duration. The financial amount designated to lenders under a Chapter 13 bankruptcy should be equal to the amount they would have received if a Chapter 7 bankruptcy had been submitted. To file Chapter 13 bankruptcy, you need to have a “regular source of income” and disposable income to use to your repayments. Especially when you live in Redmond WA or in a nearby city.

Typically, a chapter 13 bankruptcy is used when you wish to keep protected properties, such as a cars and truck or home, where you have more equity in the secured properties that you can secure by using your bankruptcy exemptions. It’s a reorganization of the financial obligations you owe your creditors that are not non-dischargeable debts.

A Chapter 13 bankruptcy permits you to make up your overdue payments gradually and to restore your original repayment contract. It might also be a much better alternative when you have a valuable non-exempt home that you wish to keep. To keep a non-exempt home, you must pay the lender for the worth of the property.

An exemption limitation would apply to any equity you have in the home. Equity is merely a distinction in between the value of the home and what you owe on it. For example, if you have a truck valued at $10,000 with a loan of $8,500, the truck only consists of equity of $1,500. When you have a residential or commercial property that is held by a loan, the equity you own because home is covered by your exemptions. That is if you are current on your payments. Likewise, if you decide to keep making your normal payments on the loan, you can keep the property throughout and after your bankruptcy term is complete. If the equity is not covered by your exemptions, your creditor might decide to sell that property and then distribute the cash arising from the sale. In this case, you would be entitled to the worth of your exemption in the sold-off asset as a money payment. Present bankruptcy laws enable a couple filing together to each claim a complete set of exemptions, implying more property can be protected. All of this is common in Washington and throughout the region, and remember, the time to do something is now.

The non-dischargeable debts you can not remove in bankruptcy include debts for personal injury/death triggered by DWI/DUI, back child support, spousal support, financial obligations related to household assistance, trainee loans, income tax financial obligations within the last three years in addition to other tax debts, charges for traffic tickets, criminal restitution, and any financial obligations you forget to list in your bankruptcy papers, unless you notify the creditor of your bankruptcy case. Other than those non-dischargeable debts, everything else consisted of in your bankruptcy case will be discharged at the end of your agreed upon bankruptcy duration.