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How can I maximize bankruptcy exemptions in Washington?

Going through a bankruptcy can put a lot of strain on the entire family. In addition to facing significant debts and needing to change your lifestyle, going through extreme changes such as the loss of home, cars and clothes can feel like too much to bear for many families.

If you are worried about the possessions that you may have to give up due to bankruptcy, it is important to understand how the law works in Washington. There are many ways that you can act to maximize the bankruptcy exemptions that you will be entitled to.

Dealing with the threat of wage garnishment

Unfortunately, unpaid debts are becoming extremely common, especially when businesses do not require immediate payment for a service that they provide. If you are a debtor who is facing a threat of wage garnishment from creditors, it is important to understand the law.

One of the possible options that creditors have is the pursuing of wage garnishment. Wage garnishment is a process that can only be ordered by the courts. It involves the debtor's employer diverting a portion of their salary to the creditor before they receive their paycheck.

Financial strategies that work well with bankruptcy

Bankruptcy helps many people get out of crippling debt each year. However, this is not done without effort and determination on the part of the debtors. Getting out of debt is never easy, but it is possible when you take positive action.

If you are considering filing for bankruptcy, you should also make sure that you prepare financial strategies to guarantee your success. The following are some financial measures that you can take alongside bankruptcy so that you can succeed in tackling your debts.

Should I voluntarily file for bankruptcy?

Many people think that filing for bankruptcy is a form of failure, but this is incorrect. Bankruptcy is often used as a strategic tool to overcome debt, and it can be highly beneficial in certain situations.

If you have found yourself in a situation where you have overwhelming debt, considering a bankruptcy filing is wise. Not everyone is eligible for a Chapter 7 bankruptcy filing; you must have a low income in relation to your debts. However, the following are some common reasons why a person might voluntarily file for Chapter 7 bankruptcy.

Hidden fees can contribute to credit card debt

Getting into credit card debt can become a vicious cycle because when you struggle to pay back the debts that you owe, you will be subject to additional fees. If you are attempting to gain control of your debts, you should first try to understand your debt situation as a whole.

One of the main factors that could be holding you back from gaining control of your credit card debt is hidden fees. You should make sure that you have a good understanding of the fees you are subject to so that you can take appropriate action.

Can bankruptcy help me to pay missed child support?

When you fail to pay your child support obligations over a prolonged period of time, the accumulated debt that this presents can feel overwhelming. This is often why many parents stop making an effort to repay the owed child support. However, giving up in this way can lead to serious legal consequences.

Many people also wonder if filing for bankruptcy can help them wipe away the child support they owe. While bankruptcy will never have the power to wipe the slate clean regarding owed child support, it may be able to help you tackle unpaid child support indirectly.

Your right to collect debt as a creditor

As a creditor, it can be very frustrating to experience missed payments from a customer. It can take a significant amount of time to chase debtors for the money owed, and this can create additional costs for your business.

How you can move forward to collect the debts will depend to some extent on the debtor's situation. By having a procedure in place as a business, you will be better equipped to deal with collection attempts when they are necessary. The following are the most common collection options that creditors have when a debt is unpaid.

The pros and cons of debt consolidation

The process of getting into debt can become a vicious cycle. You may lose track of all of the debts you have incurred, and therefore, you will probably feel out of control and powerless to improve your situation. While many in this position consider filing for bankruptcy, debt consolidation can be a good strategy depending on the situation.

Debt consolidation is the act of moving different debts in one single, lower-interest loan. This means that the interest rates will be easier to pay and easier to manage; therefore, repaying the debts will become more realistic. However, debt consolidation is not necessarily for everyone. The following are some of the pros and cons of debt consolidation so that you can decide whether this debt relief strategy could help you.

Becoming debt-free starts with simple steps

Whenever we are presented with seemingly overwhelming challenges in life, we can be reluctant to take action because the problems seem impossibly huge. We can have a tendency to bury our heads in the sand in these situations and instead of taking action to solve the issue, we might simply ignore it or pretend that it does not exist, leading to the problem becoming much worse.

This can be all too true in the case of credit card debt. But by taking small actions today, you can begin the journey of making real progress with your credit card debt.

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.

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Seattle, WA 98117
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