SPOKANE BANKRUPTCY ATTORNEY
Filing for Spokane bankruptcy can be a good option for you, but only if you qualify for relief under the bankruptcy code. Most debt can be completely erased with the filing of the proper paperwork to the Federal Bankruptcy court; this will depend in large part if you decide on/qualify for a chapter 7 or a chapter 13 bankruptcy.
What these options can offer you is peace of mind. Forget about having to deal with ridiculous interest rates, telephone calls at work, garnishments, and just the overall uncertainty that you will be served documents any minute. Most people try to negotiate with creditors, but they will not listen.
Find out now if you may qualify to discharge your debt!
Different chapters under the federal bankruptcy code are applied to different situations, for example:
Chapter 7: Liquidation (liquidates all assets and debts)
Chapter 9: Bankruptcy of Municipalities
Chapter 11: Reorganization (or Liquidation for Business)
Chapter 12: Family Farmers Bankruptcy
Chapter 13: Wage Earner Plan (individual debt reorganization plan)
Chapter 15: Border Bankruptcy (i.e. Canada assets)
Most families and single people try to qualify for a chapter 7 bankruptcy, as this chapter allows for the greatest discharge of debt. Chapter 13, for instance, sets an unsecured dischargeable debt limit of $336,000, while chapter 7 does not have a limit for unsecured debt.
If you are thinking about filing a Spokane bankruptcy, you will probably want to determine (or we can help you determine) if you qualify for chapter 7. To do this, you will need an accurate account of the prior six months’ gross income.
Gross income includes help from family, gifts, IRA withdraws, or any other source of income.
The average gross income of those six months (referred to as the current monthly income) must be multiplied by twelve to arrive at your average gross annual income. To qualify for Chapter 7, the average gross annual income must be below the medium income tablefor the relevant family size in Washington.
*For families with more than 4 members, add $7,500 per each individual to the 4-member family size amount.
If the result is under the median income, you could file for chapter 7, or you could file under a 36 month “best effort” chapter 13.
If, however, the result is AT or ABOVE the median income for the pertinent family size, you must undergo a “means test.” In addition, if you are filing chapter 13, you must do a 60-month “best effort” plan. If an individual or family fails the means test, then a chapter 13 must be filed.
The means test applies if an individual or a family is over median income, but they have very little left on which to live on (i.e., $100 per month). If this is the result, they will still qualify for chapter 7, and avoid chapter 13.
Remember, if your average gross annual income is below the median income for your family size, you most likely will qualify for chapter 7 or chapter 13 (your choice).
Spokane Debt Negotiation Lawyer
A Spokane debt negotiation lawyer, with Spokane Bankruptcy Attorneys, may be able to help if you feel cornered because of debt, and give you a plan to make a fresh start. When you work with an SBA debt negotiation lawyer in Spokane WA, we’ll take a close look at your financial situation, and then clearly spell out all of your options. Take the action that’s needed now to help create a new financial future.
How a Spokane Debt Negotiation Lawyer May Be Able to Help
Not all situations are alike, of course, but there are ways a Spokane debt negotiation lawyer may be able to work on your behalf. Typically, a debt negotiation lawyer in Spokane WA will get in touch with all of your creditors and try to negotiate a payoff that will be a percentage of your financial obligations. In some cases, an attorney will, for example, try to negotiate a payment of 40-50 percent of your original debt, with no late fees or interest.
Your Spokane debt negotiation lawyer is typically needed when someone has a significant amount of unsecured debt. This means debt that doesn’t require collateral, such as medical bills and credit cards. If you’ve already worked with a credit counselor and you’re still struggling with debt, you may want to consider getting in touch with a debt negotiation lawyer in Spokane WA.
There is a very good chance that a debt negotiation lawyer in Spokane WA can lower the amount of unsecured debt that you owe. However, there are no guarantees that this will be the case. However, it’s very likely you will have a better chance than if you tried to handle this sort of issue on your own.
One of the biggest benefits many clients see from hiring a debt negotiation lawyer is that they no longer have to deal with troubling calls from creditors. Many people receive multiple calls of this sort every day – some people get to the point to where they no longer want to answer their phone. By working with an attorney, those calls may finally stop.