In Washington, chapter 7 bankruptcy offers liquidation for the consumer to sell assets and settle their debts. The process helps the consumers settle their debts at an accelerated rate. Unlike, chapter 13, the consumer doesn’t face as many restrictions. An attorney helps consumers who want to file for Chapter 7 in Olympia WA.
Reviewing the Consumer’s Assets
The consumer’s assets must have an appraised value that generates enough proceeds to pay off their debts. The attorney reviews the assets and conducts a market assessment of each asset. They calculate the total proceeds that are possible through liquidation. If the attorney establishes eligibility for the consumer, then the consumer starts a chapter 7 claim.
Assigning a Trustee
The court assigns a trustee to the consumer’s claim. The trustee manages the sale of all assets and collects the proceeds. They choose how the assets are sold and to who. The funds are sent by the trustee to the consumer’s creditors. The deeds and titles are transferred to the new owner through the court.
Setting Up the Sales
The asset sales are either private party sales or auctions. The trustee determines what method is most effective and sets up the sale. The consumer isn’t involved in the process and doesn’t have any control over what assets are chosen. Some exemptions apply to liquidation, such as the primary home of the consumer is often protected.
Exempted Values and Protection from Lawsuits
An exempted value is applied to certain assets, including their primary home, automobiles, and personal belongings. Any exemptions are returned to the consumer once the liquidation is completed.
An automatic stay applies after chapter 7 bankruptcy starts. The stay prevents creditors from filing a lawsuit against the consumer. It lasts for the full duration of the liquidation which is about six months.
In Washington, chapter 7 bankruptcy is a helpful way to eliminate debts. It involves the liquidation of debts through court-ordered sales. The court provides a trustee to help the consumer pay off debts with the proceeds of the sales. Consumers who want to review more details about Chapter 7 in Olympia WA contact an attorney and schedule an appointment today.
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