Washington DC Bankruptcy
Washington DC has two options for personal bankruptcy filing: Chapter
Seven papers and Chapter Thirteen papers. These cases are similar forms
of controlling debt but have different outcomes. These two forms of
bankruptcy allow individuals to exercise their person rights as United
States citizens and help to manage medical debts and to eliminate
credit card debt before there is a foreclosure. It is important to
remember that Chapter Seven forms and Chapter Thirteen forms are for
personal situations only, not for the bankruptcy situations of
corporations or companies. These two forms can be filed as a single
individual or through a joint spouse filing of a husband and a wife
together. Chapter Seven bankruptcy forms are designed to discharge debt
without repayment, while Chapter Thirteen bankruptcy forms are designed
to set up a plan for repaying any debt.
Reasons for Bankruptcy Filing
The term bankruptcy can be confusing itself. Bankruptcy is basically a
ways to provide automatic creditor relief. When a Chapter Seven or
Chapter Thirteen form has been correctly submitted to the court, all
future collections will be halted, even before receipt-like papers are
returned months after filing. This is called an automatic stay and does
three things: stops any foreclosures or repossessions, halts any
pending lawsuits or wage garnishments, and silences the current stream
of creditors calling or otherwise contacting.
Bankruptcy is designed to protect individuals from financial threats, a
protection that is provided by the United States Bankruptcy Code.
Bankruptcy in the District of Columbia is often used under
circumstances of losing a job, closing a divorce lawsuit, identity
theft reasons, disability purposes, outstanding interest rates and late
fees, and high medical bills. The inability to manage credit card debt
is often the largest reason individuals resort to bankruptcy.
Filing for Bankruptcy in Washington DC
The United States government allows different ways to file for
bankruptcy. One of these ways is through online lawyers. Several
websites offer experienced lawyers and paralegals who can do the hard
work without extravagant fees. These lawyers can handle both Chapter
Seven forms and Chapter Thirteen forms. In Washington DC lawyers are
familiar with local laws on bankruptcy and can make the entire process
go much smoother than if it were done using a do-it-yourself program.
These kinds of programs sound easy but can end up being more work than
necessary. Since bankruptcy laws have changed in recent years all of
the country, filing for bankruptcy without professional help is
difficult. Professionals will be able to give advice on how to
consolidate debt and can advise on health insurance problems.
When filing for personal bankruptcy in Washington DC, the United State
Department of Justice requires a test to be taken by all those filing
for Chapter Seven bankruptcy. This is called the new state median
income levels and is a way to assess the individual's current state of
affairs. The means test must be passed before bankruptcy can be filed
and evaluates the source of income, family size, current assets, and
the current debts of the individual looking to file.