State Laws

Washington DC Bankruptcy

     

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.

See also:
Washington DC Felony