If you're considering bankruptcy, you probably have some questions that you would like answered. Some of them may pertain to the law. Other may focus on the process. Many people with debt problems are curious about the cost.
Bankruptcy is a viable option for many people facing unmanageable debt. You may be able to eliminate credit debt and medical bills or possible even save your home from foreclosure. The moment you file all debt collection stops. This includes wage garnishment, repossessions, and the harassing phone calls from creditors that can keep you up at night.
You can contact one of our Olympia bankruptcy lawyers today and get answers specific to your financial situation. Or you can take a look at these frequently asked questions and consider it a primer for what's to come. Bankruptcy may be the best way to get a fresh financial start, repair damaged credit, and eliminate the worry associated with unmanageable debt.Our Olympia Bankruptcy Lawyers Answer Client's Most Common Questions
Remember, if you have any questions not listed here, you can contact us for a free consultation.
How much will bankruptcy cost?
Our Olympia bankruptcy lawyers charge a flat fee to handle these cases. However, the total cost of filing for bankruptcy depends on a number of other factors, so contact us today for a free consultation.
How long does bankruptcy appear on my credit report?
Once your debt is discharged, Chapter 7 bankruptcies appear for 10 years and Chapter 13 bankruptcies for 7.
If family or friends loaned me money, can I pay them back?
You can, but you shouldn't until a year has passed after filing. Once your debt is discharged, you are not required by law to pay it back but you can if that's what you want to do.
Are non-federal student loans discharged?
Can I keep my house and/or my car?
Yes. In fact, almost everyone that files for bankruptcy does. You will have to stay current on your home mortgage payments. If you refinance, you should approach a different bank.
How long does the bankruptcy process take?
Three to four months for Chapter 7. Three to five years for Chapter 13.
If I file Chapter 13, how much will I have to pay?
Your situation is unique, so there are a number of variables that must be considered to reveal this number. We use a means test to determine your income and then subtract what's allowed to figure out how much money you're required to pay unsecured creditors, if any. We then add in your IRS debt, car, home mortgage arrears and penalties, and any unsecured debt you want to retain. Lastly, we add your trustee fee and any remaining lawyer's fees. If this final number is less than your total debt divided by the duration of the payment plan, your plan is 100%.
Can I keep a credit card?
You are required to report all debt, but if you have a card with zero debt, you will likely be able to keep it for use. The financial institution will have the final word.
If I owe money to a friend or family member, do I have to list it?
Yes. This is required whether the debt can be discharged or not.
How long does it take to start rebuilding credit?
When your debt is discharged, you can start rebuilding credit.
Contact us today if you have any more questions about filing for bankruptcy in Washington State. Your consultation is free.