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What is the purpose of the bankruptcy means test?

Most individual bankruptcy filers will have an initial goal of filing for Chapter 7 bankruptcy. This is because this chapter makes it possible for a significant number of debts to be written off, and it does not require committing to a lengthy repayment plan. In this way, Chapter 7 bankruptcy offers debtors with the opportunity to gain a fresh financial start.

However, not everyone can file for Chapter 7 bankruptcy. Since October 2005, it has been mandatory for all debtors to undergo a bankruptcy means test in order to qualify for Chapter 7 bankruptcy.

How bankruptcy affects child support and alimony

If you are considering going through bankruptcy after a divorce or separation, you will need to consider the expenses that you are subject to as a result of that divorce or separation. For example, you may feel that you are struggling financially as a result of child support and alimony obligations, and you may wonder if you will become exempt to these obligations after filing for bankruptcy.

Unfortunately, you won't be able to write-off unpaid child support or alimony obligations through filing for bankruptcy. However, bankruptcy could help you to more effectively deal with the consequences of not paying these. For example, it may be able to help you avoid jail time as a result of not paying these obligations.

What to do when your debtor files for bankruptcy

If you are owed payment by a client, it is likely that your cash flow has suffered as a result of this. Depending on the amount owed, this could be a very stressful situation, and it can be made even worse if you learn that the debtor has filed for bankruptcy.

It is likely that you are familiar with the general way in which bankruptcy works. When a debtor successfully files for bankruptcy, it means that they are entitled to an automatic stay in the majority of circumstances. This automatic stay is temporary, but it means that creditors cannot take any action to attempt to retrieve the debt.

Debt relief options that you may not have considered

Although debt-related problems can seem complicated and overwhelming, the underlying problem always essentially points to one simple equation: your financial incomings minus your financial outgoings. Developing a healthy cash flow is essential to tackling debt.

There are many options for those struggling with overwhelming debts in Washington. Many of these can help you regain control of the outgoings you are experiencing, and help you avoid more drastic debt relief options.

Will my car be exempt if I file for bankruptcy?

If you are struggling with crippling debts, it is likely that you will be evaluating your possible options for getting relief. One of the most obvious options when dealing with debt is to file for bankruptcy. The nature of a bankruptcy filing depends on the bankruptcy chapter that you file for.

Many people worry that in filing for bankruptcy, they will be set to lose their home or their car as a result. This can be a huge reason why people decide not to take action, because they do not want to change their life circumstances to such a drastic degree. If you are worried about losing your car in a bankruptcy filing, it is important that you first learn more about how bankruptcy exemptions work.

Understanding credit card default rates

If your credit card debt is feeling like a vicious cycle of keeping up with fees, you may feel like there is no way out. In order to change your situation for the better, you need to take action to understand how your credit card default rates are being calculated.

Credit cards can be a great financial tool if you are able to stick to the terms. However, if you do not pay off your debt in good time, you can be subject to hefty fees that seem unfair. Many people get trapped because they owe penalty fees for several cards, making it impossible for them to afford to pay off the original debt.

Can Chapter 7 bankruptcy stop wage garnishment?

Wage garnishment can occur for many reasons, but it tends to only be enforced when a debtor has not repaid their debts and a number of efforts have been made to gain the owed payment. If you are subject to wage garnishment in the state of Washington, it is likely that you feel frustrated knowing that money is being taken out of your paycheck before you even receive it.

There are several potential ways to put a stop to wage garnishment, but the most common option is for debtors to file for bankruptcy. The following are some of the most frequently asked questions pertaining to wage garnishment:

Taking control of your debts in 2019

It can be so easy to turn away from the truth regarding your financial situation. However, the more that you ignore your financial troubles, the more debt you are likely to acquire. It is important, therefore, that you get a clear view of the extent of your debts so that you can start to put strategies in place in order to tackle these debts.

There are many options for reducing your debt and eventually becoming debt-free in the state of Washington. Being successful in this endeavor is likely to happen through the implementation of several strategies that work together to achieve the end goal.

Common questions about wage garnishment

If you have been avoiding paying certain debts in the state of Washington, you may be concerned about becoming subject to wage garnishment provisions. Many people have misconceptions about wage garnishment, and as a result, they imagine that they will be left without any salary at all, even after they have completed honest work.

If you are at risk of being subject to wage garnishment, it is important that you understand how the procedure works. The following are some of the most frequently asked questions regarding wage garnishment in the state of Washington.

Understanding the federal laws on bankruptcy exemptions

If you are considering filing for bankruptcy in the state of Washington, you may be concerned about having to face a decrease in quality of life and losing the assets that have sentimental value. While the process of bankruptcy is something that takes determination and sacrifice, it usually helps people far more than it hinders them.

It is important that you take the time to understand where federal law stands in regard to bankruptcy exemptions. This will help you learn more about what assets you can keep throughout the entire bankruptcy process.

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Law Office of Ruth Nelson
7742 14th Avenue NW
Seattle, WA 98117
Phone: 206-633-2517
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