How does bankruptcy affect my collection defense rights?

Bankruptcy can affect your collection defense rights in various ways, depending on the type of bankruptcy you choose to file. In Chapter 7 bankruptcy, your assets are liquidated and used to pay off your creditors. In Chapter 13 bankruptcy, you and your creditors negotiate a repayment plan. Both of these types of bankruptcy will put an automatic stay on your debts, which means creditors won’t be able to take action against you. However, if you are facing a lawsuit from a creditor, you cannot use bankruptcy to resolve that lawsuit. The creditor can still pursue the lawsuit and will be more likely to be successful if you are in bankruptcy. That is why it is important to have a good collection defense in place before filing for bankruptcy. In Washington, you have the protection of Collection Defense Law, which allows you to challenge any collection actions taken against you, whether it’s through a court case or otherwise. This includes stopping a creditor from trying to repossess your property. You can also use Collection Defense Law to challenge any fees or interest being charged on a debt if you think it is too high. Ultimately, filing for bankruptcy can buy you some time, but it is not a long-term solution. With the protection of Collection Defense Law, you can ensure that creditors are not taking advantage of you and that your rights are being upheld.

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How does bankruptcy affect my collection defense rights?

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