Chapter 7 Bankruptcy Lawyers in Seattle Helping Those in Debt

Filing for Consumer Bankruptcy in Washington State

WA Bankruptcy Attorney Explaining Chapter 7 Filings

More people than ever before have been suffering through serious financial difficulties, and many of those who endure this daily stress are in these situations through no fault of their own. The American economy has been in a downward spiral for some time, and with the loss of jobs rampant across the United States and the real estate market suffering many people feel they have nowhere to turn for help.

Fortunately, there is a way out from under just about any amount of financial stress. One of those options is filing for bankruptcy protection under Chapter 7 of the United States Bankruptcy Code. Below you’ll find information regarding how a Chapter 7 bankruptcy filing generally works, the types of information needed to get a case started, the typical response and procedure of the United States Bankruptcy Court, the end result of a successful case and finally how you should proceed if you would like to end your financial troubles and need the help of a Seattle bankruptcy lawyer.

Chapter 7 Bankruptcy Filings – A Brief Overview

A Chapter 7 bankruptcy filing is generally known as a liquidation bankruptcy because that’s in essence what occurs when someone files for this form of financial protection. When a debtor, which is the term used for the person filing the case, seeks help from the United States Bankruptcy Court, the basic process involves liquidating assets the debtor has on hand minus exemptions to satisfy existing debts.

Generally, a debtor’s assets are not worth enough to fully satisfy all of his or her debts, but what is available is used to at least partially pay them off. After this process is complete, the many of the debts that existed before the filing of the case are discharged, which basically means that they are wiped out altogether and the debtor can move on with a fresh financial start.

Information Needed to Get a Chapter 7 Bankruptcy Case Started

Every Chapter 7 bankruptcy filing begins with the debtor gathering as much financial information as possible. This includes documentation that relates to any and all assets that the debtor possesses, the value of those assets including a car, home, tools of trade, clothing and anything else that could be sold as well as information regarding all of the debts that exist in the name of the debtor.

After your Seattle bankruptcy attorney gathers this information, it needs to be organized into schedules and statements that will be presented to the court. The court will review this information as well as any details regarding the income of the debtor and will also analyze the value of any asset exemptions claimed. Exemptions are basically a value placed on certain items that cannot be completely liquidated such as a home, a vehicle, pets, tools of trade and the like. The reason that these assets cannot be completely liquidated is because public policy demands that the debtor not be left in a state of complete destitution when the Chapter 7 bankruptcy case is complete.

The Bankruptcy Court’s Role in a Chapter 7 Filing

When the appropriate schedules and statements are organized, put together and presented to the United States Bankruptcy Court, the court immediately responds by taking several steps, most of which are meant to provide immediate relief to the debtor. One of the first steps that’s taken is for the court to notify all of the creditors named in the case of the fact that the debtor has filed for bankruptcy protection.

As part of this notice, the court issues what’s known as an Automatic Stay. This Automatic Stay is basically an order that will stop creditor collection efforts against the debtor. This means that all phone calls, all letters and all other conduct designed to pester the debtor stops.

In addition to issuing the Automatic Stay, the court will also schedule a hearing with the debtor and any creditors who want to appear. At this hearing, the court will ask the debtor to testify under oath that the information contained in the documents is true. Creditors also have an opportunity to object to any debts placed on the schedules for different reasons.

Filing With Our Seattle Bankruptcy Attorneys: Chapter 7 Results

If the hearing goes well, the Bankruptcy Trustee will ultimately issue what’s known as a discharge of the debts after the assets have been sold and the creditors have been paid out of those funds. A discharge of the debts not only closes the bankruptcy case, but it also removes the debts that existed permanently outside of certain exceptions for certain types of debts that cannot be discharged.

Therefore, a debtor benefits not only from the peace of mind that comes from the end of collections efforts, but he or she also begins with a clean financial slate. If you would like to experience this sort of relief, contact the Seattle bankruptcy lawyers at Phillips Law Firm today to schedule an initial consultation.