In Washington, consumers file chapter 13 when they have overwhelming debts. The cases provide the consumer a structured repayment plan that lasts up to five years. The claim gives the consumer an automatic stay that lasts for the full duration of the case. A local Bankruptcy Attorney In Puyallup Wa helps consumers start a claim now.
Reviewing the Income Requirements
Median income in the area is $47,269. The value is the base value for income assessments for chapter 13. The claimants must provide income statements for at least the past six months. The annual income is calculated according to the income statements. The annual income must exceed the median income for the claimant’s household size.
Assessing the Debts
Next, the court assesses the consumer’s debts. The assessment determines which debts could be discharged through the bankruptcy claim. Typically, unsecured credit cards are discharged most often. The creditors file an insurance claim for the debts and collect compensation. For this reason, the court prevents them from collecting twice. Debts such as federal student loans are never discharged.
Creating a Plan
The attorney helps the claimant create a repayment plan. The structured plan outlines the total value that is distributed to each creditor. The consumer pays one payment each month according to the requirements of the plan. The payment is distributed among the creditors each month. The claimant must also use any disposable income to pay off debts that were not included in the claim.
What are the Consumer’s Rights in Chapter 13?
The consumer isn’t allowed to open any new lines of credit in chapter 13. If any payments are late, the consumer is at risk of facing a discharge of their claim. If the case is discharged, the consumer is responsible for all debts immediately. Creditors can also start legal claims against the consumer.
In Washington, consumers start a claim for chapter 13 to settle debts over time. The claims are available to consumers who have an annual income that is more than the median value for their household size. The cases prevent creditors from filing a lawsuit. Consumers who want to learn more about the claims contact a Bankruptcy Attorney In Puyallup Wa right now.