Legal consequences can impact your life in many ways, and when the legal issue is financial, this can have a huge impact on your future. In the same way that financial regulations can be extremely complicated and frustrating to the unfamiliar, the same is true of the laws and penalties that people may face, especially when the issue is something related to debt.
That’s why our bankruptcy attorneys are here to help. We have years of expertise helping people with issues like:
While it is the right of every American to represent themselves in legal matters if they so choose, financial law, especially bankruptcy law, is an intricate field with severe consequences for those who make poor choices. The right experienced legal guidance, such as our bankruptcy attorneys, can be crucial in providing the kind of resolution people are looking for when facing serious financial issues.
This applies anywhere in the United States, including right here in the Pacific Northwest, which has many locations and attractions. For some Americans, this region is the perfect place to travel, work and live. However, as with other states in the USA, it has a lot of authority with the administration of regional and local laws.
People who come to Washington State can choose many great places to live, like Vancouver and other parts of Clark County. But of course, like other states in the US, living here means abiding by the structures of federal, state, and municipal laws. The laws cover many activities, both criminal and financial, in Washington State. They don’t just govern the people but also the banking systems Clark County residents rely on.
It is, however, a sad fact of life that despite having a vibrant economy and plenty of opportunity, finances can go wrong when you least expect it. That may be a result of circumstances or poor choice, but in the end, some Vancouver and Clark County residents face debt they cannot manage and may be subject to both state and Federal laws. The best way to deal with this situation is to make informed choices, which often starts with learning the basics of bankruptcy. From there, area residents can consult with experts such as experienced bankruptcy attorneys in Vancouver and then look into filing for bankruptcy if that’s the most appropriate step.
How Do You Qualify for Bankruptcy?Most people will only engage with the bankruptcy process when they enter into a very serious financial situation, so it’s no surprise this isn’t a process anyone looks forward to with eagerness. However, while bankruptcy can’t be regarded as a positive experience, many people make the mistake of thinking it is a final or even “terminal” condition from which there is no going back. In many cases, this is far from the truth, as one of the goals of bankruptcy is to provide a framework through which financial recovery may be possible.
Bankruptcy is a financial state that confers certain legal expectations and protections on the recipient as a means of addressing debt obligations and eventually repaying them. There are general laws at the federal level to regulate bankruptcy, but in a sense, these are overarching guidelines. This is because the federal government allows a great deal of local autonomy to states when it comes to determining their bankruptcy policies. This allows the states to create regulations that are relevant to their needs and interests. In this regard, Washington State is no exception, as it has individual laws and regulations governing how Vancouver residents and others within Clark County undertake this process.
One thing of important note is that bankruptcy is considered a financial status, but there are more specific categories that exist within it. Some general characteristics of bankruptcy do apply across the board, such as an amount of debt that can no longer be managed. However, whether that debt qualifies for bankruptcy filing and also which type of bankruptcy to file for depends on many different economic factors. A Vancouver bankruptcy attorney in Clark County can help people resolve their debt issues with various bankruptcy options like:
Chapter 13 BankruptcyChapter 13 bankruptcy has earned a nickname in the world of economics, and that is “the wage earner’s plan.” This is a solution that is typically only available to those who are gainfully employed, with an incoming monthly salary, or an otherwise reliable source of monthly revenue that continues to stream in. The full-time employee is the most common example of someone who can qualify for Chapter 13 bankruptcy. Because eligible people still have a means of making money available to them, this type of bankruptcy is sometimes thought of as the less severe option for filing.
Chapter 13 bankruptcy handles debt management by designing a financial payment structure. Debt management is addressed with a payment plan that is often defined with 3 to 5-year terms. In many respects, this plan resembles a car loan or mortgage payment. The amount to pay is determined by calculating the needs and current living expenses along with income.
Being eligible for Chapter 13 bankruptcy requires meeting two primary criteria. First, the person filing must be able to present verifiable proof of a fixed income or steady revenue stream. Second, the debt in question cannot exceed 2.75 million dollars. Any debt that exceeds this maximum disqualifies a person from filing for Chapter 13 bankruptcy.
Chapter 7 BankruptcyChapter 7 bankruptcy is typically viewed as a more severe method of managing a person or business’s debt. The process here works by evaluating and then liquidating the assets of the person filing as an attempt to recover immediate funds for debt repayment. For a lot of people and businesses, Chapter 7 bankruptcy is the alternative when Chapter 13 isn’t available due to disqualification because of a lack of salary or other revenue available.
Chapter 7 bankruptcy’s liquidation process works through an assessment process. The people in debt filing under this form of bankruptcy have their currently owned assets evaluated for value. Those items that are currently under some type of payment plan, such as homes under mortgage or cars with outstanding loan payments, are ineligible for liquidation. Those assets owned, however, such as property like personally or professionally used vehicles, equipment, and furniture, which can be seized and sold, with the profits going directly into addressing outstanding debt. Both private citizens and businesses may file for Chapter 7 Bankruptcy.
Home ForeclosureAs already pointed out, if an owned home is an asset, it can be seized and sold to recover other debt. However, if the house itself is a source of debt due to missed mortgage payments, that results in a dedicated bankruptcy process. Those who are unable to meet the mortgage payments required to pay off a property purchase undergo a process called foreclosure. Washington State has its own regional laws and regulations for this process in Vancouver and other parts of Clark County. The basic idea is that the bank, credit union, or other financial organization that holds the mortgage now owns the home. They have the legal authority to put it up for sale and use the proceeds to recover any remaining mortgage debt.
If a homeowner wants to avoid a foreclosure situation, the best thing to do is get as educated on the process as quickly as possible. For example, foreclosures have a comparatively high threshold before being triggered. A mortgage payment that is late by a few days wouldn’t be enough to start this process. A bank or other mortgage holder only has the authority to seize property if mortgage obligations lapse over 120 days.
RepossessionsA foreclosure is a specific type of repossession, but repossessions apply to many things. Repossession is when an asset, be it a property or other item like a vehicle or retail electronic product, is on a structured repayment plan, and those payments fall behind. If that happens, the holder of the loan has the legal power to take that asset back. Vancouver residents should know, however, that specific repossession regulations are in place that apply different rules to different types of repossession.
Vancouver residents and others in Clark County should always keep in mind that even if they are subject to repossession, they still have rights as consumers. Bankruptcy attorneys in Vancouver can help with this. For example, a bankruptcy lawyer may be able to assist in getting an exemption on items by filing for specific types of bankruptcy. A vehicle can be designated “off limits” if it is required to maintain the livelihood that would pay off outstanding debts.
Wage GarnishmentThere are times when a proposed financial solution can create more problems to solve one issue. This might happen when Clark County and Vancouver residents are faced with wage garnishment. Wage garnishment is a legal and financial mechanism that automatically “holds” a specific amount of a person’s salary. One example of when it is used is if a family undergoes a divorce and one spouse agrees to pay child support only to repeatedly miss those payments. At that point, the court may order wage garnishment to ensure that no matter how else that spouse spends money, a certain amount is set aside, regardless of their wishes, to go directly to child support instead.
Vancouver residents do have some legal options here, as wage garnishment is not without its limits. Washington State has regulations in place to control the maximum amount a wage may be garnished and also makes it possible to declare certain exemptions. The law is currently fixed at a maximum of 25% of a person’s weekly salary is permitted to be garnished. However, the final amount a person may receive for garnishment depends on several individual economic factors. Variables such as total salary, additional living expenses, and other ongoing debts, such as paying rent, are things a Washington State bankruptcy attorney can use to help mitigate wage garnishment amounts.
Medical BillsWhile the United States is capable of offering its citizens the best healthcare options available in the world, this is only true if those people can afford the premium pricing. For those who may not have comprehensive health insurance, meeting these prices can be difficult. In some cases, an unexpected illness or accident can financially wipe out an entire family just trying to make ends meet for the escalating costs of medical care. There are even situations where a family may be expecting a price based on an initial estimate, only to have additional costs they weren’t informed of added to the total.
Vancouver bankruptcy lawyers can intervene to help people deal with this sudden crisis. Washington State has laws to protect residents from surprise billing. Residents should always know that just because a hospital or clinic is fully licensed to practice, that does not mean their billing amounts can’t be legally challenged when they exploit patients.
Credit Card DebtMany residents in Vancouver and around Clark County use credit cards for many purchases. They are an essential tool for easily making purchases online. Unfortunately, that same convenience credit cards provide can, with a lack of discipline, quickly escalate into severe debt. Throughout the entire country, credit card debt is a major economic issue, and sadly, Washington State is no exception.
People who find themselves dealing with credit card debt always have options and assistance available to them to help manage it. Government services are active that provide credit reports, debt counseling, and other services. These services can enable people to proactively track and manage credit card debt before it gets out of control. However, if there is an escalation to unmanageable levels, debt holders, such as credit card companies themselves, are granted new legal powers to recover that debt. This can range from specific actions like trying to recover a single payment to more general actions aimed at recouping the entire owed amount. Bankruptcy lawyers in Vancouver and Clark County can help people who find themselves in this situation.
Creditor HarassmentThe financial laws in Washington State don’t just apply to the residents themselves; they also govern how businesses and other financial organizations may operate with consumer lending laws. These laws regulate what banks and other loan groups may do, and this extends to their authorized agents as well, like debt collection agencies. The rules clearly define what these agents are legally permitted to do and exist at both the Federal and state levels.
The sad truth is that some creditors or their collection agents overstep their legal boundaries. Such people often rely on the ignorance of the people in debt, exploiting the fact that these people are naturally at a disadvantage, being the ones who owe money and taking advantage of their ignorance. Many people assume that if a collection agent takes an action, that action must be legal, and so they don’t question or challenge it.
However, Vancouver residents have rights that must be respected. As an example, if a person in debt works at an office with a no-visitor policy, the creditor or collection agent does not have the legal authority to ignore the policy and seek out a person in debt at their workplace. There are also limits to how far collectors can go to communicate. Someone being in debt does not empower a collection agent to call extremely early in the morning or late in the evening as an intimidation or disorientation tactic.
LawsuitsWith a normal litigation situation, most Vancouver and Clark County residents will get their best results by seeking the expertise of a general lawsuit attorney. However, there are a few situations where a better outcome may be achieved by engaging in the services of an experienced Vancouver bankruptcy attorney. This is usually the case in a litigation case where the lawsuit occurs because of debts owed rather than due to injury or some other incident.
For example, a person may have fallen behind on credit card payments, or a bank may decide to take more aggressive action on a debt after working with a collection agency, which yielded no results. They may choose instead to serve a Clark County resident with a notice that a lawsuit is being filed against them. Should this happen, residents should remain calm and be aware that, just as with other lawsuits, a person being sued has legal options available.
Payday & Money Tree LoansBanks aren’t the only ones that offer loans. Other financial groups can also do so and may even offer faster and easier approval. This does come with other conditions, which may be serious if they crop up later. The most common negatives occur if payments are missed, such as extra loan fees or a dramatic spike in the amount and frequency of interest rates. All of these can quickly spiral into escalating debt.
In some cases, penalties and fees can be so serious that they spike the debt to amounts that eclipse the initial loan. There are, however, ways to resolve this. It just requires seeking the advice of an experienced Vancouver bankruptcy attorney in Clark County.