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How Can Bankruptcy Help? Olympia, WA Bankruptcy Lawyers
How can an Olympia bankruptcy help? Can I qualify for a Washington State bankruptcy? Talk to an Olympia, WA bankruptcy lawyer. Wipe out your debts.
What is bankruptcy?
Our country has had bankruptcy laws since its very beginning. Bankruptcy is specifically set up as a federal law in the constitution. That means the discharge order wiping out your debts is automatically valid all over the country.
Bankruptcy provides the honest, unfortunate debtor a financial fresh start. The idea is that it is much better for society in general to give people a second chance than to see them reduced to working only to pay their debts. We all to much better when people feel motivated to work and the economy grows because people are willing to take risks, incur debt, start businesses, etc.
The end result of a bankruptcy is called a “discharge”, which is an injunction that prohibits creditors from trying to collect from you. Some debt – such as fines, student loans and child support – cannot be discharged. Basically, after discharge, a debt is canceled and you will never have to pay the debt.
There are two forms of bankruptcy for most consumers – Chapter 7, which is a quicker form of bankruptcy for people with below-average income s, and Chapter 13, which involves a payment plan that lasts three to five years. Either case results in a discharge of any debts that do not get paid.
Bankruptcy is one of many options to get out of financial trouble. Some people consider trying to settle with creditors if they can’t pay their debts as they originally agreed. Some people try to avoid their creditors for so long they stop trying to collect or the debt simply gets too old to collect because the statute of limitations has expired. Bankruptcy is probably the cheapest and safest way to get out of debt. If you are in financial trouble, even if your credit rating is still fairly high, you will not be able to maintain a high credit rating.
Once you start missing payments your credit score will go down quickly. Though a bankruptcy will stay on your credit report for 10 years, that doesn’t mean you can’t start rebuilding your credit immediately after discharge. However, if your debt is going nowhere and it is seriously affecting your ability to take care of yourself and your family, your most important goal should be to take care of your finances.
You will be probably be able to take out new loans for important purchases or investments more quickly than if you hadn’t filed bankruptcy, though in the future you will probably want to be more careful about the money you borrow.
Bankruptcy can be complicated. Most people who file bankruptcy do not lose important assets like homes, cars or retirement accounts. Our Olympia, WA bankruptcy lawyers are highly experienced at getting the best fresh start possible for our many clients.