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Olympia Bankruptcy Attorneys

(360) 350-3435

How can bankruptcy help?

What can an Olympia bankruptcy do for me and my family?

Bankruptcy can offer immediate relief for a large number of financial problems: foreclosure, repossessions, garnishments, creditor harassment, lawsuits, utility cut offs, suspended licenses and man tax problems, so name some.   It is better to get the advice of an attorney before your situation turns into an emergency, but we understand that you have probably tried everything to avoid bankruptcy and some problems can sneak up on you.  However, if you can see no end in sight to your financial troubles, it is better to get good legal advice early in your planning stages.

An Olympia bankruptcy can immediately improve your monthly cash flow.

Just knowing that about your right to file bankruptcy can help your cash flow.  If you know what your rights are in bankruptcy, you are better able to decide what payments should be your priority.  You also know what kind of property can be protected in bankruptcy.  If you can’t see any way out of debt, it doesn’t make sense to cash out a 401K which is 100% protected in bankruptcy, if you use it to pay off debt that will eventually be discharged anyway.

An Olympia bankruptcy an immediately stop a garnishment or wipe out a judgment lien.

Creditors can garnish 25% of your net wages, seize bank accounts and place liens on your real estate. Bankruptcy stops all these actions dead in their tracks.  If your wages are already being garnished, bankruptcy stops the garnishment and allows you to recover some of the more recently garnished funds.  If you’ve already had a judgment lien place on your home, you can remove the lien if you had less than $125,000 in equity in your home before the lien was placed on your house.

An Olympia bankruptcy allows you to wipe out your debts while keeping your property.

Bankruptcy lets you hold on to the things you are buying on installment, such as cars, homes, furniture, etc. while discharging other debt.  Most liens survive bankruptcy, but a second mortgage can be stripped off a home in a Chapter 13 if the value of the home is less than the first mortgage.  You can also remove liens on household goods that were pledged as collateral for loans.  Often you can “cram down” installment loans to the value of the collateral.

An Olympia bankruptcy gives you several options with regard to your vehicle.

For example, if a car is worth $10,000 and you owe $20,000 on the loan, you can pay only $10,000 and get the title of the car after the bankruptcy is over.  For cars, you have to have purchased the vehicle over two and a half years ago to cram down the loan.   In a Chapter 7, you can “redeem” the loan by paying it off at the value of the collateral.  Sometimes a bank may be willing to loan you the money to do this.  Otherwise, you can keep a car or anything else you are buying on installment by “reaffirming” the loan.