facebook-squarelinkedin-squaremenumobiletwitter-squareyoutube-square

Filing for Bankruptcy

Filing for Bankruptcy

Filing for Bankruptcy - When, How, & Why

Filing for Bankruptcy – When, How, & Why

Determining if you Qualify for Bankruptcy

Individuals file personal bankruptcy because there is financial relief needed and they seek a second start.  If you feel there is no way out of your debt troubles and these debt troubles are regular occurrences, filing bankruptcy may be your best option.

  • Debt troubles a regular occurrence
  • You fear to lose your home/facing home foreclosure
  • Wage garnishment has been assigned to paychecks
  • Laid off/ job problems
  • Medical crisis to your family
  • Creditor harassment
  • Recent divorce
  • Lawsuit pending

To Qualify for Bankruptcy there are steps you must take.

1)      Attend a court-approved financial counseling course

2)      Figure out if your monthly income is more or less than the median income in your state.

One way to Qualifying for the bankruptcy means test:

Current monthly income minus expenses

Times that by 60 to get your result

If your result is more than 25% = $10,000

Less than 25%=$6,000 or less

3400-2000= 1400

1400* 60 = 84000*.25 = 21000 (File for chapter 13)

3400-3000= 400

400*60=24000*.25 = 6000 (File for chapter 7)

3a)   If Income is more than median income then you can file a 5-year chapter 13 bankruptcy

3b)   If Income is less than median income then you can file a chapter 7 bankruptcy

4)   Get a discharge from your bankruptcy through an approved Credit Counseling Course.

A Chapter 7 bankruptcy or a Chapter 13 Bankruptcy can help you overcome problems.  Learn more about what filing a Bankruptcy can do to help you in Bankruptcy 101

If you are at risk of losing your home due to foreclosure, mortgage mediation and modification might be your best solution. Contact us anytime to learn more information about Western Washington mortgage mediation, the fairness act, and how to avoid foreclosure.

Related: What if I Can’t Make My Mortgage Payment?

Advantage Legal Group is a financial debt relief law firm based our of Bellevue and Federal Way Washington and provides legal, bankruptcy and foreclosure defense services throughout Western Washington including Bellevue, Seattle, Redmond, Kirkland, Sammamish, Issaquah, Bothell, Woodinville, Lynnwood, Everett, Renton, North Bend, Auburn, Kent, Covington, Tacoma, Olympia, Federal Way, Des Moines, Seatac, Burien, West Seattle, Edmonds, and Western Washington in King County, Snohomish County, and Pierce County.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • How Bad is Bankruptcy Really?

    How Bad is Bankruptcy Really?

    Filing for bankruptcy means telling the judge that you cannot pay off your debts. After this is done, the court checks your assets and liabilities then decides if you are eligible to have your debts cancelled or discharged. If it is seen that you have no means to pay back, they let you declare bankruptcy. […]Read More »
  • What Do You Lose if You Declare Bankruptcy?

    What Do You Lose if You Declare Bankruptcy?

    Before you finally go to the judge or court to file for bankruptcy, the major worry to have is what you stand to lose. It might be your house, property, a potential job, or client as the record of your bankruptcy is available to public access. Bankruptcy is the last resort when the debt starts […]Read More »
  • How Far Behind Do I Have to Be For Mortgage Forbearance?

    How Far Behind Do I Have to Be For Mortgage Forbearance?

    Under normal circumstances, there are policies owned by all lenders, and that is what you should be working with. However, if you are finding it difficult paying you mortgages either due to lose of job or increase in costs. There is a 15-day grace period, and if you are able to meet up and make […]Read More »
  • Can I Claim Forbearance 4 Months Into COVID-19?

    Can I Claim Forbearance 4 Months Into COVID-19?

    The whole world is facing a pandemic that is not just making life different for all of us but it is equally causing major financial problems for some individuals. Individuals and countries are facing financial hardship in this coronavirus crisis. Forbearance is when your lender or mortgage servicer allows you to temporarily pay your mortgage […]Read More »