Seattle Bankruptcy Protection Attorneys Helping Consumers

Become Debt Free With Filing by Bankruptcy Protection in Washington

WA Bankruptcy Lawyers Explaining the Concept of Protection

When people or a business in Washington encounter financial problems that seemingly have no solution, they are often overwhelmed with feelings of despair, stress and even fear. Fortunately, there are options available that will allow those who find themselves in this situation to put their financial struggles behind them. One of those options is filing for bankruptcy protection, but this should only be done with the help of our Seattle bankruptcy lawyers.

Below you’ll find information regarding how bankruptcy protects someone who is experiencing financial troubles, the different types of bankruptcy protection available in Washington State, the basic steps you’ll need to take to get the process of ending your financial struggles started and finally how you should proceed if you’re ready to move on from your stress and would like the help of our experienced bankruptcy attorneys in Seattle.

How is Filing for Bankruptcy in WA Considered ‘Protection’?

Unfortunately, many people who hear about filing bankruptcy in WA think that it’s anything but a process that protects someone from financial harm. Instead, most see it as the last resort and an end to any hope for a successful financial future. In short, nothing could be further from the truth. Bankruptcy is not an end to a financial future, but rather a beginning to the possibility that hope and success can be obtained.

In technical terms, bankruptcy is considered a form of protection because it temporarily puts a stop to the harassing phone calls, letters or even lawsuits that have been filed by creditors. It allows the person who is filing for bankruptcy protection in Washington some time to get his or her financial picture organized so that help can be obtained in starting over.

After our Seattle bankruptcy attorneys file a case and it is pending, creditors are prohibited from continuing their collection efforts. When a bankruptcy case is complete in Washington, the debts that were in place before the case was filed are either wiped out altogether or are reorganized into a payment plan that the creditors accept. Regardless of the specifics, the protection offered by the United States Bankruptcy Court provides those in financial trouble with a chance for a new start.

Chapter 7 Bankruptcy Protection

One of the most common forms of bankruptcy protection in WA is known as a Chapter 7 case. Chapter 7 bankruptcy relates to the chapter in the United States Bankruptcy Code that is used to govern this type of case filing. Basically, a Chapter 7 bankruptcy filing is known as a ‘liquidation bankruptcy’, as the process involves our Seattle bankruptcy attorneys submitting schedules of debts and assets to the bankruptcy court and then liquidating the estate up to a certain point.

The proceeds from this liquidation are then distributed to the creditors as seen fit by the court to at least partially pay the existing debts. Once this process is complete, the debts are discharged, which means that they are wiped out and no longer exist. Creditors cannot continue to attempt to collect the rest of what they’re owed after a bankruptcy case has been closed.

Chapter 13 Bankruptcy Protection

A Chapter 13 bankruptcy filing in Washington is also very common, and this form of bankruptcy is also known as a ‘wage earner’s bankruptcy’ because it typically is filed by someone who has a steady stream of income and who can afford at least some payment of bills on a monthly basis. Much like with a Chapter 7 filing, a Chapter 13 bankruptcy case protects the person who is filing by ordering the creditors named in the case to cease and desist with their collection efforts.

In contrast with a Chapter 7 case, however, is how the debts are repaid. The person filing the case does not liquidate his or her estate, but rather our Seattle bankruptcy attorneys propose a payment plan that must be accepted by the court and the creditors. This plan generally apportions a specific amount each month to be distributed to the creditors, and these payment plans can last anywhere between three and five years. Once the plan has been completed, the court will discharge any remaining debts that were originally included in the documentation are discharged or eliminated as long as the monthly payments were all made.

Chapter 11 Bankruptcy Protection

A Chapter 11 bankruptcy filing in WA is different from the two described above in many ways because it usually involves Washington businesses who find themselves in financial trouble. A Chapter 11 bankruptcy is often referred to as a ‘reorganization’ because that’s basically what it accomplishes – it reorganizes the debts and finances of a business so that at least some of the debts can be paid over a period of time.

When these debts are partially paid in accordance with the plan approved by the court, a company is said to ‘reemerge’ from bankruptcy and its financial slate is wiped clean. Like the other forms of bankruptcy, filing for Chapter 11 with the help of our Seattle bankruptcy lawyers protects a business from additional collection efforts.

How a Seattle Bankruptcy Lawyer Can Help You

As can be seen, bankruptcy in Washington is not an acceptance of defeat and a giving up of the future – instead, it’s a fresh start that’s made possible by the protection that the court provides while the person or business gets back on his, her or its feet. If you would like to put an end to your financial stress, contact the Washington State bankruptcy attorneys in Seattle at Phillips Law Firm today to schedule a free initial consultation.