Seattle  |  Tacoma  |  Everett  |  Olympia

Washington State Bankruptcy Attorneys

We help hundreds of Washington State bankruptcy clients wipe out millions of dollars of debt every year.

Looking for answers to difficult questions?  Need to find a solution?

Talk to a Washington bankruptcy attorney today!

We are Washington State bankruptcy attorneys and debt relief lawyers.  If you are visiting our site, you are probably experiencing some significant financial difficulty.  We understand that you are going through a tough time.  It may sound simple.  But sometimes the answer to your problems really is right in front of you.  You just have to reach out and grab it.  Our Washington State bankruptcy attorneys are here to help you decide if bankruptcy is right for you.

If you are looking for answers and need help and information about qualifying for a Washington bankruptcy, we encourage you to call our offices for an initial consultation.  You can talk to one of our bankruptcy lawyers in detail about your income, your monthly expenses, and your debts.  We can help you assess if you are entitled to relief under the Federal and Washington State bankruptcy laws.

If you can qualify, a filing for bankruptcy may be able to solve most of your financial problems immediately.  Bankruptcy is not for everyone.  But for many of our Washington bankruptcy clients it's nothing short of a miracle.  Imagine waking up and never having to pay your credit card bills and other debts again.  Imagine never receiving any more harassing phone calls at all hours of the day night.  Imagine immediately increasing your monthly cash flow because your debts are completely wiped out.

It may seem like a dream.  But it's not.  We make it happen for hundreds of clients every year.  The new bankruptcy laws have made the process more complicated.  But protection and relief is still available.  Our Washington State bankruptcy attorneys know how to properly present your case.  Many of our bankruptcy clients are successful in wiping out 100% of their debts and keeping 100% of their personal property and assets.

Call now to speak with one of our Washington bankruptcy lawyers.

We're here to help.

Is a Washington State bankruptcy the right decision for you and your family?

The issue of deciding to file for bankruptcy is always a difficult one.  And, there are many variables involved.  Our Washington State bankruptcy attorneys understand that you are facing a very difficult set of circumstances.  Your creditors are calling at all hours of the day and night.  They absolutely refuse to work with you and are simply demanding more and more money.

The credit card companies and those nasty bill collectors that do their dirty work refuse to understand that you are truly trying harder and harder to just keep your monthly bills paid while getting caught up.  But despite your working harder and harder, you just seem to keep falling further and further behind.  Despite your best efforts, things are slowly spiraling out of control and life just seems to keep getting more and more demanding.

On many days, it feels like the whole roof is caving in and there is simply no way out.  If you qualify, however, a Washington bankruptcy may be your best option.  We're here to help you understand your legal rights and options.  Our Washington bankruptcy attorneys are experienced and aggressive.  We understand the Bankruptcy Code, and we understand how maximize your relief and protection.

If you are like many of our Washington State bankruptcy clients, you are barely hanging on each month.  There are potentially many different ways to deal with your financial situation.  But it all starts with a simple phone call to one of our offices.  Don't wait until the water is rising above your chin.  Call today.

Talk to Washington bankruptcy attorney now!

The only thing you have to lose is your debt!

What you need to understand about filing for bankruptcy in Washington State.

Bankruptcy is a federal court proceeding that allows someone who cannot pay their debts in a reasonable time a financial fresh start.  Bankruptcy is Washington state is governed by both state and federal laws that word side by side and sometimes together.  We can help you decide whether it is best to proceed under the federal or the state bankruptcy statutes. 

The whole idea behind bankruptcy is that it is better to let all the creditors know that the debtor cannot possibly pay back everything owed as originally agreed than leaving them wondering if they will ever collect the debt.  If there is a way for the creditors to receive anything in the process, they all get to share fairly.  If there is no way of paying anything to creditors while giving the debtor an effective fresh start, then creditors in any Washington bankruptcy have to accept they will never get paid and they can move on to other customers.

It is important to give someone who is in an impossible financial situation a fresh start.  Both the Washington State and the federal bankruptcy laws operate on similar principles when it comes to providing the opportunity to file for bankruptcy here in Washington State.  Simply put, people would not have the incentive to stay productive if their situation turns out not as they planned and they have creditors lined up to garnish their wages for the foreseeable future.  In addition, people might find taking out loans to be too risky if bankruptcy was not an option, which could prevent small businesses from getting off the ground or people spending money to keep the economy going.

A Washington bankruptcy case starts by filing a petition with the US bankruptcy courts.  Consumer (non-business or government) bankruptcy can be filed by an individual or a married couple.  The petition includes several pages of documents that list a debtor’s income, property, debts, budget and other financial details.  The purpose is to show the court and all the creditors that the debtor deserves some relief from debt.  The second a bankruptcy case is filed all debt collection must stop. 

A Washington bankruptcy stops lawsuits, garnishments, foreclosures, car repossessions, utility cutoffs and in many cases, driver’s license suspensions.  If a creditor tries to collect a debt after a bankruptcy is filed, they can be sanctioned by a federal bankruptcy judge.  The federal and Washington bankruptcy laws were enacted to give people the opportunity to become productive again without the burden of suffocating debts that are often not even the debtor's fault.

What if a creditor already has a judgment against me?

It doesn’t matter if a creditor has a judgment against you – the debt collection must stop.  A Washington bankruptcy stops nearly all collection efforts dead in their tracks.  However, if a creditor obtained a judgment against you and you own real estate in Washington, they have a lien against your real estate.  In many cases you can remove this lien in a Washington bankruptcy. 

After a bankruptcy is filed, a trustee is appointed to oversee how much creditors will get, if anything.  There are two kinds of bankruptcy for most consumers – Chapter 7 and Chapter 13.  If creditors get anything in a Chapter 7 bankruptcy, it’s after the trustee takes some of the debtor’s property to sell so they can pay creditors.  Most people in Chapter 7 do not lose any property because it falls into one of the many exemptions. 

The bankruptcy code provides for certain exemptions of property.  These exemptions give debtors a true fresh start by letting them keep the property needed to go forward in life.  If creditors get anything in a Chapter 13 bankruptcy, it is from monthly payments made by the debtor, which are divided up according to a Chapter 13 plan.  The trustee in a Chapter 13 receives the monthly payments from the debtor and pays creditors from these funds.

Will I have to appear in court after filing for bankruptcy in Washington State?

About one month after a Washington bankruptcy is filed, the debtor meets the trustee at a “meeting of creditors”.  Creditors rarely appear.  The trustee swears in the debtor and goes over the petition and related documents to make sure the law is being followed and creditors receive whatever they might have a right to under the law.  Final decisions are made by a federal bankruptcy judge.  It is unlikely that a debtor would have to appear in bankruptcy court.  Most debtors only have to appear at the meeting of creditors, which is a serious federal proceeding but is very informal. 

A debtor’s testimony is taken under oath and tape recorded.  Usually the only person in attendance is the debtor, his or her attorney and the trustee.  The debtor has to provide the trustee with pay stubs, bank statements and most recent tax return in advance.  The debtor verifies that the bankruptcy documents are true and answers a few follow up questions.  Usually that is the only involvement a debtor has with the trustee but in Chapter 7 bankruptcy cases the trustee may take property and in a Chapter 13 bankruptcy the trustee receives monthly payments.

The end result of a Washington bankruptcy is a “discharge” which basically cancels most debt.  The discharge is an injunction that prohibits creditors from trying to collect a debt forever.  If a creditor tries to collect a debt, they can be sanctioned by a federal bankruptcy judge.  Some debt is not discharged.  Student loans, back taxes, child support, alimony, fines and tickets are examples of debts that cannot be discharged.

Filing a Washington Chapter 7 bankruptcy.

A Chapter 7 bankruptcy is the cheaper, quicker form of bankruptcy.  It does not involve any monthly payments and only last a little over three months in most cases.  In 2005 congress passed a law making it more difficult for some debtors to file Chapter 7 bankruptcy.  The law required debtors with above median incomes to submit to a means test.  The Washington bankruptcy laws regarding qualifying for bankruptcy change on an annual basis.  To find out if you can currently qualify, you will need to speak with a Washington bankruptcy lawyer who is familiar with the current income requirements.

The means test only looks back six months to determine a debtor’s income.  These are before-tax figures.  If the debtors combined household income is over the median, the next step is to see if their monthly expenses take up all the income, not leaving anything for creditors.  Some deductions, such as food and clothes, are set by law.  Our Washington bankruptcy lawyers can help you to understand exactly these deductions work.

Some deductions, such as health insurance, child support and mortgage payments are a debtors actual expenses.  Some adjustments can be made for special circumstances.  If the test shows the debtor has some money left over each month to fund a Chapter 13 plan, there is a presumption that a Chapter 7 bankruptcy would be an abuse of the bankruptcy system.  This presumption can be overcome in some situations if the debtor can justify it.

Can I still keep my house or car in a Washington Chapter 7 bankruptcy?

Most debtors in Chapter 7 bankruptcy who can continue to make mortgage payments are able to keep their homes.  Under Washington bankruptcy law, a house can be taken to pay creditors but $125,000 of a home’s equity is exempt from being taken.  Banks do continue to consider mortgage modifications for homeowners in Chapter 7.  Unfortunately there is nothing in the Washington bankruptcy laws that allows a Chapter 7 debtor change the terms of a mortgage.  However, as mentioned before, a Chapter 7 debtor can remove judgment liens unless there is more than $125,000 in equity without the judgment lien.

A Washington Chapter 7 bankruptcy debtor can also keep their car in a Washington bankruptcy if they continue to make the payments.  In rare cases an expensive car that has no loan or a small one attached to it is vulnerable in a Chapter 7 bankruptcy, but even in these cases, most debtors can protect their cars.  A debtor can “redeem” a car by paying its market value to a creditor rather than the entire loan.  Some debtors are even able to arrange financing for a redemption.

Creditors will want Chapter 7 debtors to “reaffirm” mortgages, car loans and other debts used to buy something on installment.  A reaffirmation agreement takes the debt outside bankruptcy.  Because this places a risk on the debtor, a person in Chapter 7 bankruptcy should discuss whether it makes sense to reaffirm and make the decision carefully. 

Car companies can repossess cars even when the debtor is current if they don’t reaffirm, though only a few choose to do so.  A mortgage company can never foreclose on a loan that is current.  A debtor may not receive statements any more if they do not reaffirm.  However, by reaffirming, a debtor takes a big risk if there is a chance they can’t make the payments.  If you have additional questions about this issue, one of our Washington bankruptcy attorneys will be happy to explain it to you in more detail.  Just give us a call.

Filing a Washington State Chapter 13 bankruptcy.

Chapter 13 bankruptcy cases are required for many debtors who make above the median household income.  In a Chapter 13, the amount of debt paid back is determined by how much money is left over after deductions are made in the means test.  If there is income left over in the means test, the payment plan has to be five years.  Otherwise it can be as short as three years.  If a debtors property is vulnerable in a Chapter 7 bankruptcy, they may want to file a Chapter 13 plan to protect it.  In this case, they have to pay creditors as much as they would receive if the vulnerable property was sold but they can pay it over five years.

Car loans, taxes, back child support, back mortgage payments, fines – all kinds of debt – are paid back in a Chapter 13 plan.  A debtor can stop a foreclosure and get caught up on mortgage payments over time in a Chapter 13.  However, the debtor must be able to keep making the mortgage payment and get caught up within five years.  If the value of a house is less than the first mortgage, a Chapter 13 debtor can strip any other mortgages off the title – an option not available to Chapter 7 debtors.  If a car was purchased over two and a half years ago, a Chapter 13 debtor can “cram down” the car – pay only its value instead of the whole loan.

The Chapter 13 bankruptcy plan gives different priorities to different classes of debt.  For instance, non dischargeable taxes get paid before credit cards and other unsecured debt.  If there is not enough income to pay all the unsecured debt, then these creditors get paid a percentage based on how much a debtor can afford.  In this way a Chapter 13 can really help cash flow.  Even if a debtor has so much income that they have to pay all the debt back, interest and late charges stop, garnishments stop and there is a definite plan to be out of debt in no more than five years.

Chapter 13 bankruptcy plans allow debtors to reinstate a drivers license if it has been suspended for unpaid tickets.  In a Chapter 7 bankruptcy, drivers licenses can be reinstated if suspended for an uninsured accident, but not for tickets.  Debts that result from injury or death in an accident involving drugs or alcohol can never be discharged.

A Chapter 13 bankruptcy allows debtors to discharge debts they were ordered to pay in a divorce, unlike a Chapter 7.  If student loans are not paid in full (they usually have to be paid the same percentage as other unsecured creditors) the unpaid amount will remain at the end of the Chapter 13 plan.

A Chapter 13 plan must be confirmed by a federal bankruptcy judge.  The trustee and creditors can object to the plan and, in the event of a dispute, the bankruptcy judge decides if a plan can be confirmed.  This occurs at a confirmation hearing but the debtor usually does not have to attend this hearing.  At the end of the confirmed Chapter 13 plan, any debt that is not paid is discharged, unless it falls into one of the above-mentioned exceptions.