Qualifying for Bankruptcy in Washington State

Who can file a Chapter 7 or 13 bankruptcy in Washington State?

Any person or business can file for bankruptcy. A married couple can file a bankruptcy together. If you are not married, you must file by yourself. However, you can only file one Chapter 7 every 8 years if you received a discharge.

You cannot file a Chapter 13 and receive a discharge if you have filed a Chapter 7 with a discharge in the last 4 years. Sometimes a bankruptcy is filed, and it’s dismissed before completing, so there is no discharge. If you file a Chapter 13 and get a discharge, you cannot file another Chapter 13 for two years after a Chapter 13 discharge. If you have questions about this and are considering filing, please give our Washington State bankruptcy attorneys a call for a free consultation!

Learn from our Washington State bankruptcy attorneys which bankruptcy option is best for you.

Before filing a bankruptcy, a debtor must take a credit counseling class within 180 days of filing. These classes are offered on line and only take about two hours. It is an easy and inexpensive class but if you do not take it and you try to file a case, your case will be dismissed. There are very few exceptions.

If you file a Chapter 7 and you are over the median income, your case may be dismissed or converted to a Chapter 13 unless you can pass a “means test”. The median income for the State of Washington is $53,302 for a household of one, $63,873 for two, $71,379 for three and $82,942 for four (add $7,500 for each household member after that). The means test allows you to deduct certain real expenses, like mortgage payments, taxes, health insurance, child support and day care and sets some fixed allowed expenses based on the IRS tax repayment regulations.

If your family makes over the median income and there is disposable income left after the means test deductions, then there is a “presumption of abuse” if you decide to file a Chapter 7 anyway. You can overcome this presumption of abuse and avoid dismissal or conversion to a Chapter 13 if you can show you have special circumstances.

Anyone can file a Chapter 13 case unless they have unsecured debt over $360,475 and secured debt over $1,081,400. If a debtor has more than this amount of debt, he or she must file a Chapter 11, which is usually reserved for businesses, not consumers. If a Chapter 13 debtor cannot propose a feasible plan, the case will be dismissed.

To be feasible, the plan has to pay the debt it proposes to pay within five years and the debtor must have enough income to pay it. One way a plan could be rendered unfeasible is if there are high mortgage arrears or tax debt that cannot be paid in five years. With there being so many details to cover, it is advisable to contact our Washington State bankruptcy lawyers as soon as possible to discuss your options.

Questions about qualifying for bankruptcy in Washington State?

Qualifying for bankruptcy is easy. The real question is whether the likely results make sense – will you lose property you don’t want to lose, will you have to do a Chapter 13, do you want file now and lose your ability to file in the future, etc. It is important to talk with our Washington State bankruptcy attorneys about your options. The advice you are probably looking for is not so much “do I qualify” but “what will probably happen if I file?”

Contact us for a free consultation with one of our experienced Seattle bankruptcy attorneys – we offer you low flat fees and affordable payment plans!

Washington State bankruptcy lawyers can help explain the benefits of filing for bankruptcy.

Bankruptcy is not something to be ashamed of. It has many financial benefits that can truly help individuals and families maintain a stable financial household.

Some of the many benefits of bankruptcy are:

• Eliminates credit card debt.
• Eliminates medical debts.
• Stops garnishments and lawsuits: Eliminates the stress and burden of garnishing up to 25% if your wages and 100% in your bank account.
• Rebuilds credit: Bankruptcy wipes out the balance of many or all of your debts so you can rebuild your credit. Many people achieve credit scores in the 700’s again just a few years after filing for bankruptcy.
• Eliminates financial stress: Allows families to take care of themselves without worrying about monthly bills they can no longer afford.
• Keep all of your retirement: In Seattle and all of Washington State, because bankruptcy protects 100% of your assets in retirement accounts, you should seriously consider filing for bankruptcy before drawing money out of your retirement to pay unaffordable debt. We can help you save your retirement – call our Washington State bankruptcy lawyers to learn more.

Our Seattle law firm offers low flat fees. Payment plans for attorney fees are also available. Call for a free consultation with our experienced Washington State bankruptcy lawyers now!

Need to qualify for bankruptcy in Washington State? Call today.

Our Washington State bankruptcy attorneys are here to help you get a fresh start in life! We offer inexpensive low flat fees. Take the first step by simply calling us today for your free consultation:

(206) 686-6399