Some actions can have legal repercussions, and some of these both legal and financial. Many people are rightfully bewildered by the complexity of normal financial regulations, but when that’s combined with legal consequences as well, it can feel both bewildering and overwhelming.
Our bankruptcy attorneys are ready to help people. We have over 30 years of combined financial law experience helping people throughout Washington State with issues like:
In the USA, citizens have the right to represent themselves in court. However, financial law, particularly bankruptcy law, is intricate and complex, with serious consequences for those who make poor choices. It’s always best to work with experts, like our bankruptcy attorneys, who know how to guide people to the resolutions that actually give them the best results for their financial situation.
This is true everywhere in the USA, including here in the Pacific Northwest, with its many locations and attractions. As a region, this area is, to some, the ideal destination for travel, work, and even living. However, as with other states in the country, it has a great deal of autonomy when it comes to the administration of regional and local laws. New arrivals to Washington State have many great residential options, like Kennewick, the tri-cities area, and other parts of Benton County. As with other states in the country, living in Washington State means abiding by the laws laid out at the federal, state, and municipal levels. These laws regulate a variety of different actions, such as criminal activities and financial activities in Washington State. They also don’t just apply to people; institutions, such as the banking systems Benty County residents use, are also answerable to these laws.
Unfortunately, no situation is ever perfect, and even when the American economy is vibrant and economic opportunity is all around, there’s no guarantee that everyone will have financial success. Due to circumstances or bad decisions, some Kennewick and Benton County residents may have insurmountable debt subject to the state and federal laws governing this situation. The best way to resolve this situation is to get informed and learn the basics of bankruptcy. After that, it may be time to work with experienced bankruptcy attorneys in Kennewick and consider filing for bankruptcy.
What Qualifies As Bankruptcy?Bankruptcy is normally a process people only engage in when they have serious financial problems, so it’s unsurprising that people don’t typically view it favorably. However, while it’s true that bankruptcy likely won’t be enjoyed as a positive experience, it’s not true that this is a “fatal” financial situation from which there is no coming back. In fact, one of the chief goals of a bankruptcy filing is to create a financial framework in which recovery is possible.
Bankruptcy is a financial status that assigns both legal expectations and protections for recipients to create an environment in which debts can ultimately be addressed and finally repaid. General laws are in place at the federal level to regulate bankruptcy, but these can, in a sense, be regarded as guidelines. The reason for this is that states enjoy a large amount of autonomy when it comes to creating regional bankruptcy policies. This makes it possible for them to form regulations that are relevant to both the state’s particular needs and interests. Washington State is typical in this regard, as it created specific laws and regulations governing the way Kennewick, the tri-cities, and others in Benton County file for bankruptcy.
People should be aware that bankruptcy itself is a general financial status, and within it, there are specific categories. Of course, there are some general characteristics of bankruptcy that will be true in every case, like having an unmanageable amount of debt that needs to be addressed. Within that debt, specific characteristics may qualify for different filings based on certain economic factors and circumstances. A Kennewick bankruptcy lawyer in Benton County can guide people through this process and find out which options work best for them, such as:
Chapter 13 BankruptcyIn the financial world, Chapter 13 bankruptcy has a nickname. It’s colloquially known as “the wage earner’s plan.” There’s a specific profile of the person that can qualify for this, and gainful employment is usually involved, or some other access to a reliable stream of revenue or income. The most common situation for this is a full-time employee who draws a salary. Because this option is only available to people who still enjoy some means of salary or income, Chapter 13 bankruptcy is sometimes viewed as a less severe category for people to fall into.
Chapter 13 bankruptcy addresses debt management by creating a financial plan for the person filing. This financial plan is essentially a payment schedule, typically set for a three—to five-year payment period. For many, this will be familiar to other payment plan structures, such as the installments on a car loan or the longer-term payment plan of a mortgage. The amount of the installment is calculated using various factors, including expenses versus income.
To qualify for Chapter 13 bankruptcy, people must meet two important criteria. The first is that an applicant must be able to present verifiable evidence of either regular salary or another reliable revenue stream. The other is that there is a hard maximum on how much debt a person owes. Only people who owe less than 2.75 million dollars are eligible.
Chapter 7 BankruptcyChapter 7 bankruptcy tends to be regarded as a more severe alternative for addressing a person or company’s debt. This process works through the simple but drastic process of evaluating and liquidating assets to try and recover as much cash as possible for debt repayment. For many, Chapter 7 bankruptcy is a less appealing alternative when qualifying for a Chapter 13 bankruptcy filing isn’t feasible.
The Chapter 7 bankruptcy liquidation process is based on an evaluation. People filing for Chapter 7 have any currently owned assets assessed. Any items that are still under some kind of debt themselves, such as a home with remaining mortgage payments, are excluded from use. However, other owned items such as vehicles, furniture, and liquid assets, such as investments, may be seized and sold. Both individuals and businesses can file under Chapter 7 bankruptcy.
RepossessionsIn a few cases, especially for high-value purchases, it may not be convenient—or even possible—to pay the entire amount upfront, in cash, and with a single payment. In these cases, payment plans with installments are normal, but should too many of these payments be missed, the purchaser is now breaking the agreement, which then allows the holder of the debt to go through a process known as repossession. Kennewick residents should be aware that there are specific repossession regulations in place that apply different rules for different types of repossession.
Repossession is when the holder of the debt is now granted legal permission to find the item on which money is owed and take it back. While this does not require consent from the purchaser, Benton County residents do still have consumer rights in these situations. Bankruptcy lawyers in Kennewick can help in these instances, such as securing an exemption on certain items by filing specific types of bankruptcy. One circumstance where this applies is designating a vehicle “off limits” for repossession if it’s required to maintain a job where the salary would go toward debt repayment.
Home ForeclosureIt’s normal for most people to take out a mortgage on a home rather than pay the entire amount as a lump sum. However, if too many payments are missed, then the repossession of a home is called foreclosure. Washington State has its own regional laws and regulations to administrate this in Kennewick and other areas in Benton County. A foreclosure grants the mortgage holder, often a bank, ownership of the home, with the legal authority to evict residents and sell that home in an attempt to take the proceeds and pay off the remaining mortgage debt.
Homeowners with concerns about facing this situation should educate themselves on the foreclosure process. Many conditions about this process can help clarify the problem, such as when foreclosures can be enacted. A single late payment, for example, is not enough for a bank to trigger a foreclosure, but if no mortgage payment happens after 120 days, a mortgage holder then has the authority to foreclose on a property.
Wage GarnishmentSome financial solutions can create additional complications as they attempt to resolve a problem. Kennewick tri-cities residents may experience this when facing wage garnishment. Wage garnishment works by automatically “partitioning” a portion of a person’s salary. A common use for this is if a divorcee is required to pay child support but then misses multiple payments. To ensure this doesn’t happen again, their wage is garnished, so a portion of that salary automatically goes to child support regardless of their consent.
Kennewick residents are not without legal options here, as wage garnishment has limitations. Washington State has created regulations to define the maximum to which a wage may be garnished and also has provisions to declare specific exemptions. The current law has an allowable maximum of garnishing up to 25% of a person’s weekly salary. Garnishment amounts are determined by considering several economic factors. Things like the total salary, requirements for living expenses, and other ongoing debts such as mortgage or car loan payments are all factors that a Washington State bankruptcy attorney may be able to work in as mitigations for a final garnishing amount.
Medical BillsThe United States is fortunate enough to have some of the most advanced medical treatments in the world available to citizens. However, that doesn’t mean those treatments are affordable. For some without comprehensive health insurance coverage from their employer, a serious accident can financially wipe out all savings. The same may be true for the sudden diagnosis of a disease. Unfortunately, sometimes these expenses can be exacerbated by unexpected, crippling additional costs added onto initial estimates.
Kennewick bankruptcy attorneys can provide timely intervention in such a crisis. Washington State has enacted laws to protect residents from surprise billing. Residents should never assume that just because a licensed hospital or clinic is issuing a bill, that bill can’t be legally challenged as exploiting patients.
Credit Card DebtQuite a few residents of Kennewick, the tri-cities, and elsewhere in Benton County regularly use credit cards. They’re an essential payment method in modern life, often the best way to make online purchases. However, the convenience they provide can sometimes lead to overreliance or even abuse, which may sometimes escalate into large amounts of debt that can’t be paid. Serious credit card debt can be an issue for Americans throughout the country, and unfortunately, Washington State is no exception.
Managing credit card debt requires a proactive stance, and there are actually many forms of assistance to help in this. There are even government services available that can provide credit reports, debt counseling, and other services. If, however, things escalate beyond a manageable level, then debt holders like credit card companies are legally authorized to attempt the recovery of money owed. They can take a number of actions, from trying to get a single payment to recovering the entire debt that is owed. Bankruptcy attorneys in Kennewick and Benton County can help people in this situation.
Creditor HarassmentFinancial law in Washington State applies to people and organizations, such as businesses or economic groups, outlining the consumer lending laws they must obey. Such laws define how banks and other loan organizations may act, extending to their designated agents, such as debt collection agencies or their agents. The laws explicitly lay out what creditors can and can’t do with mandates from both the Federal and state levels.
Unfortunately, these laws are sometimes enforced because creditors or their agents may overstep the legal boundaries set out for them. In such cases, they often rely on the ignorance and disadvantaged position of a debtor, hoping the person will simply accept the treatment as legally permissible because they owe money. The collector wouldn’t do such a thing if it were illegal.
However, even in a debt situation, Kennewick residents have rights that should not be violated. For example, a person who owes money works in an office with a “no-visitors” policy. A collection agent does not have the authority to override that business’s policy and enter without consent just to talk to a debtor. Similarly, a collection agency does not have a legal mandate to be able to call a debtor extremely late at night or early in the morning as a means of disorientation or intimidation. Anyone in Kennewick, the tri-cities, or other parts of Benton County who feel they are being harassed or are having their rights violated because of creditor harassment should talk to a Kennewick bankruptcy attorney to ensure their rights are protected.
LawsuitsUnder normal legal circumstances, if someone is notified they are being sued, the best course of action for Kennewick, tri-cities, and other Benton County residents is to seek legal representation from a litigation lawyer. However, there are specific lawsuit circumstances where better results may actually be achieved by working with a Benton County bankruptcy attorney. This is especially true in lawsuits that don’t involve injury liability but are instead focused on debts.
One example of this is that a person may have fallen behind significantly on monthly credit card payments. A bank may initially try to work with the person, then, if that should fail, engage a collection agency. However, if that also brings no results, they may finally resort to filing a lawsuit and serving notice to the person who owes money they are being sued. Just as with a normal lawsuit proceeding, a resident of Kennewick County still has some legal options available. It’s important to work with an experienced Benton County bankruptcy attorney to work toward a better resolution.
Payday & Money Tree LoansWhile banks are the most common source of loans, they aren’t the only legal alternatives. Other financial organizations can and do offer loans for various reasons. Some even specialize in providing “advances” on a person’s paycheck with the expectation that once payday arrives, that will go toward paying off the advance, hence the term “payday loan” to describe some of these companies.
In one sense, some people may even find these companies to be more advantageous because the approval process may be both faster and easier, allowing people to quickly secure loans they might not otherwise receive in a timely fashion—if at all—at a bank. However, the downside to some of these businesses is that, unlike banks, penalties can be extremely severe for even minor infractions. For example, missed payments can incur stiff penalties or increased interest, and even a late payment may incur an extremely high late fee. These penalties can escalate so quickly that they eclipse the original loan amount. In such situations, the best course is to work with an experienced Kennewick bankruptcy attorney in Benton County.