Gig Harbor Bankruptcy Attorney
Drowning in debts?
Coming up short every month?
Tired of harassing phone calls?
Considering Bankruptcy?
Call (253) 444-5517 now to learn more about your legal rights and options.
Attorney David M. Lux
Free Attorney Consultation
- Low Flat Attorney Fees
- Flexible Payments Plans
Questions About Bankruptcy?
In either Chapter 7 or Chapter 13, you can discharge (wipe out) most, if not all, of your unsecured debts---debts that have no collateral attached to them. These debts include credit card charges, medical bills, pay day loans, income taxes over 3 years old if your tax returns where also filed at least three years ago, unsecured guarantees, personal loans and notes, most judgments and garnishments, repossession debts, eviction or broken lease debts; past utilities, etc.
You also discharge you home mortgages and car loans so long as you will be surrendering these properties.
Is there is Debt Limit to Filing for Bankuptcy?
No, not for Chapter 7 cases. For Chapter 7 cases, you can qualify for bankruptcy regardless of how much or little debt you owe and all of your unsecured debts will be discharged in a successful Chapter 7 Bankruptcy.
However, you cannot file for Chapter 13 Bankruptcy if you owe over $336,900 of unsecured debts (e.g., credit cards and medical bills) or over $1,010,650 of secured debts (e.g., mortgages and car loans) even if you intend to remain current on your secured debts and keep the properties.
Can I keep my house in Bankruptcy?
Yes, so long as you have no more than $125,000 equity. Washington State allows generous protection to keep one’s house.
However, in most cases, must be able to make your regular mortgage payment to keep your house. The Bankruptcy laws do not allow you to lower your mortgage payments in either Chapter 7 or Chapter 13 Bankruptcy proceedings.
Can I Get Rid of My Second Mortgage and Still Keep my House?
Yes, in some cases. If your second and any succeeding mortgages no longer have any secured value based upon the current fair market value of your home, you can discharge your second and any additional successive mortgages through Chapter 13 Bankruptcy proceedings. If you qualify under these circumstances, one of our experienced Gig Harbor bankruptcy attorneys can guide and represent you through this process to get rid of one or more mortgages on your house (other than your first mortgage). In today’s declined real estate market, more and more homeowners are able to discharge their second mortgages through Chapter 13 Bankruptcy proceedings because the sale of the house will not even pay off the entire balance of their first mortgage.
What is equity?
Equity is the net value of house. It is the current fair market value of your home minus the amount of outstanding mortgages on your home.
Can I Keep a Vacation or Rental Home in Bankruptcy?
It is more difficult to keep a vacation or rental home in Chapter 7 or Chapter 13 bankruptcy. If the home has no equity, then you can keep the home. However, if your home has any equity (after deducting about 8% of the fair market value for costs of sale), you may very well not be able to keep the home and the bankruptcy court could take possession of the home, sell it, and give the proceeds from the sale to your creditors unless you can pay to the bankruptcy court the difference between the fair market value of your house minus $125,000 plus about 8% costs of sale. Our experienced Gig Harbor Bankruptcy lawyers will properly advise you of the criteria to keeping a vacation or rental home in Chapter 7 or Chapter 13 Bankruptcy.
Can I keep my cars in Bankruptcy?
Typically yes. Most people keep their cars in bankruptcy unless you have a very large amount of equity in them that you will not be able to protect in bankruptcy proceedings. If you have a car loan, as with keeping a home in bankruptcy, you must be able to make your regular monthly car payment to keep your car.
What does filing for bankruptcy do to your credit?
In most cases, filing for bankruptcy actually improves your credit because the balances on your outstanding debts are discharged (wiped out) and your debt-to-income ratios drop. Most people report improved credit scores within 6 months after filing for bankruptcy.
Will I ever be able to buy a house after filing for bankruptcy?
Many homeowners have filed for bankruptcy prior to owning their home. Many mortgage lenders can qualify you for a mortgage within 2 years after filng for bankruptcy if you show a good credit history and have the income to support the mortgage you are seeking.
Can a Finance a Car after filing for bankruptcy?
Many car lenders can qualify you for a car loan almost immediately after filing for bankruptcy. It can be easier to qualify for a car loan after filing for bankruptcy because, as stated above the balances on your outstanding debts are discharged (wiped out) and your debt-to-income ratios drop. Therefore, you have more income to available to afford a new car loan.
Can my creditors Contact me after Filing for Bankruptcy?
In most cases, the answer is no. Immediately when your bankruptcy case is filed, an automatic stay is created. An automatic stay prevents creditors from taking firther collection again against you. This includes teleohone calls to work or home, or cell phone, collections letters., etc.
However, if you are behind on your home or car loans and intend to surrender that property, the correspondenting creditor will typically file a motion to the bankruptcy court for “Relief from Stay” to move forward to repossess that property. This process takes at least 30 days from the date a bankruptcy petition is filed.
Can I Keep my Furniture and other Personal Belongs if I file for Bankruptcy?
The Federal and Washington State bankruptcy laws allow for bankruptcy filers to keep a generous amount of personal property. Most people keep their furniture, clothes, cars and other personal property after filing for bankruptcy.
What are the Benefits to Filing Chapter 7 Bankruptcy over Chapter 13 Bankruptcy?
A successful Chapter 7 Bankruptcy case gets rid of all of your unsecured debts----credit cards, medical bills, unsecured personal loans, deficiency judgments on repossessed cars and foreclosed home, etc. In a Chapter 7 Bankruptcy, you will not need to repay any of unsecured debts.
If you do not need to catch up on a home or car loan, all of your property is exempted (protected) by the bankruptcy code, you do not have any disposable income, you have no income taxes or student loans to repay that you cannot afford, you have not filed a Chapter 7 Bankruptcy in the past 8 years, and your household income qualifies you to file for Chapter 7 Bankruptcy, you should file a Chapter 7 Bankruptcy instead of a Chapter 13 Bankruptcy.
We are a Gig Harbor, Washington-based law firm emphasizing bankruptcy protection, and legal assistance and help with debt negotiation.
Our attorneys have over 25 years combined legal experience.
We help hundreds of individuals and families in Gig Harbor and throughout Western Washington obtain the bankruptcy relief to which they are entitled every year.
Bankruptcy protection stops collections, garnishments, lawsuits, respossessions, foreclosures, and creditor harrassment.
In most cases, bankruptcy filers keep all of their property, including their house, cars, furniture, and other household items.
Bankruptcy May be Your Best Financial Solution
Whether due to job loss, illness, divorce, or wages that simply cannot keep up with the increased costs of living, filing for protection under Chapter 7 or Chapter 13 bankruptcy laws can relieve you of financial distress. Filing for Bankruptcy relief can literally wipe out all of your debts and give you a fresh financial start..
Bankruptcy Can Actually Improve Your Credit
With carefully financially planning after your bankruptcy case is completed, most of our clients' credit scores actually improve after bankruptcy because the balances of their unsecured debts have been wiped out from the creditor report. In fact, you can achieve a credit score above 700 only a few years years out of bankruptcy.
Our Law Firm Will Prequalify You Under the New Bankruptcy Reform Laws
Many people erroneously believe that the new bankruptcy laws that took effect in 2005 will automatically prevent them from filing bankruptcy in Washington State. In fact, the opposite is true. Over 90% of those who qualified for bankruptcy protection before the new laws took effect remain qualified for Chapter 7 or Chapter 13 bankruptcy. As a result, many are still able to discharge 100% of their unsecured debts. Our experienced bankruptcy lawyers will walk you through the qualification process step by step.
For more information about Bankruptcy Protection, contact our law office for a free consultation with one of our experienced bankruptcy attorneys.
Attorney David M. Lux works for a Gig Harbor Washington Debt Relief Agency. He and the attorneys who work with him help individuals and families in Gig Harbor and throughout Pierce County, WA resolve their debt problems through bankruptcy protection under the Washington state and federal bankruptcy code.