Special Debt Issues
Some debts are more challenging to deal with due to special rules concerning non-dischargeability in bankruptcy, lack of statute of limitations, hold harmless clauses, and other issues. We have experience in resolving these type of debts using creative, outside of the box approaches combined with some traditional approaches. Call today to see how we can help.
Special Debt Issues:
Criminal/Govt Fines – Family Law Debt – Military – Student Loans
Washington Debt Law handles a very wide range of debt issues. However, some debts, require special considerations or out of the box techniques. For example, if you are in the military debts can impact your security clearance and can lead to discharge if it is revoked or for criminal fines they are generally non-dischargeble and for federal student loans there are no statutes of limitations per the Higher Education Act. If you are dealing with these sorts of issues, give us a call to see how we can help. While there are too many categories to list, the most common special debt issues are listed below along with the services we provide.
Criminal Fines, Restitution, Legal Financial Obligations (LFO), Court/Jail Costs, Government Fines:
- Bankruptcy Discharge (when applicable, generally not available)
- Bankruptcy Repayment
- Collection Defense & Counter Claims for Violations of Facts, Laws, and/or Rights
- Post Conviction Relief or Appeal for Failure to Consider Ability to Pay (via Referral)
- Reduction or Removal of Interest
- Settlement of Criminal Related Debt
Family Law Debts:
- Bankruptcy for Debts Owed by you: Discharge property settlement in Chapter 13, Amortize non-dischargeable debts in Chapter 13, Discharge non-family law debts to free up cash flow in Chapter 7, Defense against ex-spouse creditor claims and suits in Bankruptcy
- Bankruptcy for Debts Owed to you: If your ex spouse is or already filed for bankruptcy protection, we can object to the discharge, object to their plan, and ensure sums owed to you survive the bankruptcy process
- Bankruptcy (Cooperative pre dissolution): If you and your soon to be ex are amicable and considering a no-contest or cooperative divorce, we can help by resolving the debts prior to dissolution.
- Bankruptcy (Prior to Trial): In low asset high debt cases and other situations, there are advantages in declaring a bankruptcy prior to trial so debts cannot be assigned to you and the offset of loss of assets are minimal.
- Collection of Family Law Related Debt Owed to you: If your ex spouse will not pay and DSHS will not help, we can. We can garnish wages, bank accounts, foreclose upon assets, and take other steps as necessary.
- Foreclosure Defense: If you were awarded the home and your ex is now trying to force a sale and partition, we can help defend against it. We can additionally help against other creditors, see our foreclosure defense page.
- Sale & Partition Actions When Ex Spouse Will Not Refinance or Sell: If your partner has not or will not sell or refinance within a year as required by the divorce decree we can help by forcing a sale. If your ex spouse is purposefully not paying the mortgage to push down the equity while keeping the cash, we can help with that too.
- Settlement of Debts Owed by you: If your ex spouse, DSHS, or another creditor is collecting or might collect, we can help resolve the matter by finding leverage and settling the debt.
- Strategic Consultation with you or your attorney During, Prior to, or After Dissolution: Some debts are not dischargeable and hold harmless agreements can make an otherwise dischargeable now non-dischargeable. Property settlements can be discharged while debts in lieu of alimony, maintenance, and support may not be. We can help consult with you and/or your family law attorney to try to bankruptcy proof your dissolution.
Military Debt Issues:
- Bankruptcy: We can file a bankruptcy for military members with consideration for deployment, SCRA, Articles 134 & 123 of UCMJ, and security clearance issues under DDoD 5220.6
- Breaking leases: We can terminate leases obtained prior to entry to active duty or deployment to include auto, rental, and others.
- Collection defense & consumer protection: We can defend you in a way sensitive to your military career and sue debt collectors who violate the Fair Debt Collection Practices Act by contacting your Commander, Supervisor, or Senior NCO
- Landlord tenant/Lease Breaks For PCS: We can assist with general issues and also military specific issues such as evicting deployed individuals, helping the family members of deployed issues, breaking leases for members with orders, and suing for violations of the SCRA and other applicable law
- Lemon Law: Many unscrupulous auto dealerships set up shop outside of or near military bases. We can help you to understand your rights under Washington state lemon laws
- Negotiating with Creditors/SCRA Cram Downs: we can seek a cram down of credit card and other debt to 6% under the SCRA
- Remote representation: for deployed military members or for members located out of their home state
- Stay of litigation: if you are deployed and cannot appear, we can answer any civil suit or complaint and obtain a stay of litigation under the Servicemembers Civil Relief Act (SCRA)
Student Loans:
- Bankruptcy Hardship Discharges via Adversary Proceedings and Objections to Claim (disputing amount owed)
- Chapter 7 Bankruptcy- To discharge non-student loan debt to potentially free up cash flow
- Chapter 13 Bankruptcy- To amortize student loan debt owed
- Collections Defense & Counterclaims for violations of fact, law, and/or rights
- Co-signer or Parent Plus Defense, Bankruptcy, Strategy, and Options
- Class Actions on Student Loan Issues
- Student Loan Consultation & Strategy to discharge, reduce, and/or settle
