Legal Question in Bankruptcy in Washington

Re: Which is better bankruptcy or popular debt cons, co.

Hi there,

Whether Chapter 7 relief is appropriate - or even available - depends on several factors. First, I would look at the type of debt. Most consumer debt (credit cards) is "general unsecured" and is dischargeable provided there was no fraud involved or debt incurred in anticipation of filing for BK. Another type of debt is "secured" - that is most likely the type of debt on your car loan, and mortgage? That debt would only be discharged if the asset were surrendered - if you want to keep the car/house you need to keep making the payments. The other type of debt is "priority" - this is the category where most taxes, fall in to. These are dischargeable only under limited circumstances. The next factor to look at is assets. The idea behind a Chapter 7 is to provide a "fresh start" Implicit in that is the need for certain basic assets. An attorney's role in the process is to review your assets and advise you before filing what you can keep. Most people considering BK can generally keep all of their assets. The last factors to consider are income/expenses. That is, need to look at your monthly budget and see what is left over. There is a presumption in BK law that if you can pay most of your debts w/in 3 years, then you should file a Chapter 13. That is the monthly payment plan type of bankruptcy. Whether one of the debt consolidation type of firms would be appropriate again depends on situation. I've seen as many bad stories coming from them as good, but again, really depends on specifics. Please don't hesitate to contact me directly if you have more questions. I don't charge for initial consultations,

Good luck

Pete James

206-261-4174