Stop All Lawsuits and Repossession Actions

The pressure of unpaid bills and lawsuits from creditors and the threat of losing your property in Wenatchee, Washington, through repossession can be too much. But you don’t have to deal with and face them alone. Fortunately, there are legal options available to help you stop all of this and protect your assets.

One of the more effective solutions is filing for bankruptcy. A good first step in stopping lawsuits and repossession actions against you is consulting a qualified Wenatchee bankruptcy attorney.

Bankruptcy is a legal process that can provide relief when you are unable to pay your debts. In Washington, it can also offer protection from creditors, stopping lawsuits and halting repossession actions.

• Chapter 7 Bankruptcy: Also called a liquidation bankruptcy, it is suitable for those with limited incomes and assets. When you file for Chapter 7 bankruptcy, the court issues an automatic stay, which immediately stops lawsuits and repossessions.
• Chapter 13 Bankruptcy: This type of bankruptcy, also known as a reorganization bankruptcy, is suitable for individuals with a regular income who wish to retain their property. It involves creating a repayment plan to pay off creditors over three to five years. An automatic stay also applies, stopping any lawsuits or repossessions.

When the automatic stay goes into effect, it includes the following actions:

• Lawsuits for Unpaid Debt: It doesn’t matter if you're being sued for medical bills, credit card debt, or personal loans; filing for bankruptcy immediately stops these lawsuits.
• Wage Garnishments: If your wages have been garnished, filing for bankruptcy will stop the garnishment and prevent further deductions from your paycheck.
• Judgments and Liens: Bankruptcy may also discharge certain types of judgments and liens, depending on the circumstances of your case.

If you risk losing your property, bankruptcy is a good way to prevent this from happening, as it triggers an automatic stay (11 U.S. Code § 362) that prevents your creditors from seizing your assets.

• Car Repossession: If you’re behind on your car payments in Chelan County, filing for bankruptcy will halt repossession attempts, giving you time to catch up on payments or even keep your vehicle in some cases through a bankruptcy repayment plan.
• Home Foreclosure: Chapter 13 bankruptcy can help you stop home foreclosure actions, allow you to catch up on missed payments, and potentially save your home.

However, take note that bankruptcy might not always protect all of your property. In some cases, the court may permit certain repossessions if the property is deemed non-essential or if it can be liquidated to settle debts.

In addition to the automatic stay provided by bankruptcy, there are other laws in place to protect your property and stop creditor actions. Some are more specific to Washington State, while others are federal protections.

Specific exemptions are available for your home, vehicle, and personal property. In some cases, filing under Chapter 7 allows you to protect your car, even when you’re behind.

• RCW 6.15.010: This outlines exemptions for property like household goods, tools of the trade, and motor vehicles, protecting essential items from repossession during bankruptcy.
• RCW 6.17: This section outlines the legal procedures for garnishment, attachment, and execution of judgments when it comes to property seizure. It allows the sheriff to enforce the judgments by seizing the property to satisfy the debt.

For active-duty military personnel in Wenatchee, Washington, additional protections are available under the SCRA.

• The SCRA prohibits the repossession of personal property, like a vehicle, without a court order as long as the servicemember has been in active duty for at least 12 months.
• 50 U.S.C. § 3952: This statute protects service members from repossession of property during active duty unless the court has authorized the repossession. It provides valuable protection for service members who are also facing financial difficulties.

• The SCRA also stops creditors from filing judgments or lawsuits against service members without a court order.
• 50 U.S.C. § 3931: This allows service members to request a stay (pause) on legal proceedings, including lawsuits and foreclosures, while serving in the military. It is especially useful during deployment.

When you file for bankruptcy in Wenatchee, there are several steps you have to take.

• File Your Petition: The first step in the bankruptcy process is filing your petition with the court. This should include details about your debts, income, assets, and financial situation.
• Credit Counseling: Before you can file, you must complete a credit counseling course from an approved agency.
• Meeting of Creditors: After filing, you must attend a meeting with your creditors, where you will be asked to confirm your financial details and intentions.
• Discharge or Repayment Plan: In Chapter 7 bankruptcy, your qualifying debts may be discharged after the liquidation of assets. In Chapter 13, a repayment plan will be developed and must be followed for three to five years before any remaining debt is discharged.

Facing lawsuits and repossession actions can be a distressing and overwhelming experience, but you don’t have to go through it alone. Bankruptcy can be a valuable tool to stop lawsuits and repossession actions against you.

With guidance from one of our skilled Wenatchee bankruptcy attorneys, you can protect your assets and start taking control over your financial future.