Bankruptcy

When debt becomes an unmanageable constant in one’s life, it can seem like there is no way out. Filing for bankruptcy stops harassing calls from collectors and halts any foreclosure proceedings that may be underway.

Washington Bankruptcy Lawyer

21743085_lWe’ve talked to hundreds of Washington families who faced overwhelming debt and we’ve helped them find solutions. Sometimes declaring Chapter 7 or Chapter 13 bankruptcy is the best way to hit the restart button on your financial life. In some instances, we are able to restructure your home loan while in bankruptcy and force a lender to reduce interest rates and outstanding balance on investment properties. As dedicated Washington bankruptcy attorneys, the Law Offices of John A. Long can advise you whether declaring bankruptcy is the best way for you and your family to deal with an untenable financial situation.

Bankruptcy: A Powerful Tool to Eliminate Unstructured Debt & Compel Lenders to Reduce Interest Rates, Forgive Delinquent Payments and Penalties, and Reduce Principal Balances

It’s true that bankruptcy is an aggressive solution to a difficult problem. That’s why we conduct a full review of your financial situation before making a recommendation. We can tell you what portion of your debts qualify for discharge or modification and those you cannot discharge. The goal of bankruptcy is to eliminate unsecured debts (such as credit cards, medical & utility bills, and personal loans) and restructure payments on secured debts.

If you can’t afford your home mortgage payments, we may be able to negotiate directly with your lender for a loan modification while in either a Chapter 7, 11 or 13 bankruptcy. If you have investment real estate, we may be able to compel the lender to either temporarily or permanently reduce the interest rate, forgive delinquencies, and if your investment is worth less than what you owe, even reduce the principal balance down to match the current market value.

Chapter 7 Bankruptcy

Essentially, declaring Chapter 7 means that you are required to sell your non-exempt assets in order to pay creditors before the remainder of your dischargeable debt can be eliminated. At times, people are able to keep their homes and automobile by carefully allocating exemptions and allowances. Examples of exemptions include dollar amounts for household furniture and furnishings, tools of your trade, clothing, and jewelry.

Chapter 13 Bankruptcy

Filing for Chapter 13 permits you to reorganize your debt payments and retain ownership of your assets by obtaining court approval of a payment plan that brings secured debts current over the life of the plan (3 to 5 years) without penalties or late charges. Unsecured debts are only paid if you have funds left over under the plan and any remaining unsecured debt is discharged at the end of the plan.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy used to be known as a business reorganization plan, but with the mortgage crisis, many have used this Chapter to retain personal real estate investments by restructuring the repayment terms of the debt even if the creditor objects and if the property is worth less than what you owe, possibly to reduce the amount owed. It also must be used if your debts exceed a maximum for Chapter 13. The benefit of Chapter 11 is that the court can compel your mortgage lender on investment property and secured creditors (other than on your residence) to permanently reduce the balance owed to equal the property value, reduce the interest rate, and extend the term of the loan.

During our initial consultation we will discuss all of your options carefully to be certain you fully understand what you can do and how you will benefit.

Call The Law Offices of John A. Long at (425) 427-9660 to find a solution to your financial situation.

Schedule an appointment with a compassionate Washington State bankruptcy attorney if you are drowning in debt related to your mortgage or other assets. You don’t have to lose your home when bankruptcy, loan modifications, and other legal tools are readily available. Call today!

The Law Offices of John A. Long