Your Possessions & Assets
Bankruptcy protection in Washington State - keep your property!
FREE consultation with a Tacoma bankruptcy lawyer: (253) 778-6952
A skilled Tacoma bankruptcy attorney can help you protect your valuable possessions and assets.
When the idea of a financial crisis “forcing someone into bankruptcy” is mentioned, most people think of that as meaning utter financial ruin. The reality is that bankruptcy is there to prevent people from financial ruin. One way it does this is by protecting important property during the process. Bankruptcy would not be able to fulfill its goal of letting you start over in a truly effective way if your property were taken away in the process.
Bankruptcy protection in Washington State and the law. The bankruptcy laws that protect your property are called exemptions. There are many different types of exemptions – home equity (homestead), automobile, household goods, clothing, jewelry, tools of the trade and personal injury awards, to name a few. You also get a “wildcard” exemption that applies to anything not covered by a specific exemption. The wildcard exemption usually applies to things like cash, bank accounts, accounts receivable and tax refunds. You can also stack it on top of other exemptions if a particular exemption is not enough. You can also choose between federal and state exemptions in Washington State.
How can I keep my property if I file bankruptcy in Tacoma, WA?
If you are making payments on a house, car, appliance, electronics, furniture or other big ticket item, you can keep that property if you keep making payments on it. You can also surrender the property and walk away from the debt. In a Chapter 7, you may have to sign a reaffirmation agreement. It is risky to sign a reaffirmation agreement because if you do, the debt will not be wiped out in bankruptcy.
A car company can repossess a car even if you are current on the loan if you do not reaffirm the debt. You can ask your finance company what their policy is because some will allow you to keep the car as long as you are current. With property like appliances and furniture, you can usually negotiate to pay less than what is actually owed on the contract. Mortgages will not change the amount you can pay. However, some people in bankruptcy can still obtain a mortgage modification.
Chapter 13 allows you to pay mortgages, car loans and other secured debt in a repayment plan. It allows you to catch up on any late payments and reduce the amount you pay for cars and major purchases. If you have property that is not covered by exemptions, you can pay through the Chapter 13 plan instead of giving up the property. You just have to pay your creditors as much as they would have received if the property had been sold.
Call for a FREE consultation with a Tacoma bankruptcy attorney today!
We are passionate about helping people get back on their feet to a brighter financial future and can help you keep your possessions and assets. Allow a Washington State bankruptcy attorney from our firm to answer your questions to see if filing could be one of your better solutions to the current situation you are in.
Affordable, aggressive & experienced. Low flat fees & flexible payment plans.
Protect your possessions and assets today with the help from a Tacoma bankruptcy attorney. Call today! (253) 778-6952