How Debtors Get Legal Relief with Proven Debt Solutions – Tacoma Bankruptcy Attorney

Feb. 22, 2011 - PRLog -- Despite the 2005 bankruptcy law designed to decrease the rate of bankruptcies, a record number of Americans is filing for bankruptcy and Chapter 7 proves to be their most-popular route. That’s because it usually allows them full debt relief, according to Tacoma bankruptcy lawyer Dave Yando who provides proven debt solutions.

More than 1.5 million Americans have filed for bankruptcy in the last 14 months – according to federal court records – and most choose Chapter 7 for financial relief over the Chapter 13 option. That’s the trend even though Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) more than five years ago.

“The purpose of the act was to reduce the number of Chapter 7 bankruptcy filings and increase the number of Chapter 13 filings,” says Tacoma bankruptcy attorney Dave Yando (http://www.yandolaw.com).  

“This legislation was sought by creditors because Chapter 13 debtors have to partially repay their debts, whereas with Chapter 7, most debts are not repaid and are discharged,” explains the debt relief attorney.

“As the years have passed, bankruptcy filings have increased to pre-BAPCA and historic levels,” asserts Mr. Yando.

Indeed, the Administrative Office of the U.S. Courts Nationwide reports more than 1 million people filed Chapter 7 last year, alone.

“For 2010, there were 26,875 bankruptcy cases filed in the Western District of Washington,” Mr. Yando points out. He points out it's a legal tool in finance.

“It is clear now that BAPCPA has preserved for working people the relief that the Bankruptcy Code affords as honest people do make regrettable decisions, get sick, lose jobs, get divorced and have other bad things happen to them,” says Mr. Yando.

“Chapter 7 of the bankruptcy code, entitled Liquidation, contemplates an orderly, court-supervised procedure by which a trustee takes over the assets of the debtor’s estate, reduces them to cash, and makes distributions to creditors, subject to the debtor’s right to retain certain exempt property and the rights of secured creditors,” states Mr. Yando.

“Because there is usually little or no nonexempt property in most Chapter 7 cases, there is usually not an actual liquidation of the debtor’s assets; most individuals who file for bankruptcy keep all of their assets,” says Mr. Yando.

“These cases are called ‘no-asset cases.’ In most Chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The debtor normally receives a discharge, that is ‘a fresh start,’ just a few months after the petition is filed,” he explains.

“Filing a petition under chapter 7 ‘automatically stays’ (stops) most collection actions against the debtor or the debtor’s property,” says Mr. Yando. “The stay arises by operation of law and requires no judicial action. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments.”

Mr. Yando’s full explanation of how Chapter 7 works: http://www.yandolaw.com/bankruptc/chapter-7-bankruptcy.

Mr. Yando analyzes the financial impacts of falling real estate values in Seattle-Tacoma: http://www.yandolaw.com/archives/848

In summary, Mr. Yando quotes the U.S. Supreme Court regarding the purpose of the bankruptcy law:  

“It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”

http://www.youtube.com/watch?v=3zw2p6KYGcg



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Tacoma bankruptcy attorney David Yando helps businesses and people with debt relief and bankruptcy services. He has more than 30 years of hands on experience in planning and litigating debt relief matters - including bankruptcy, real estate and taxation.