Need to Qualify for a Washington State Bankruptcy?

Our Mount Vernon Bankruptcy Attorneys Can Help

Wondering if you can qualify for a Washington State bankruptcy? Our Mount Vernon bankruptcy attorneys can help. (360) 707-7634. Call now!

The bankruptcy code allows any person or business to file bankruptcy. However, you can only file one Chapter 7 and get a discharge every 8 years. You have to wait four years to file a Chapter 13 after you file a Chapter 7 to get a discharge. However, you could file a Chapter 13 sooner – you won’t get a discharge but you can stop bill collectors while your restructure.

To qualify for a bankruptcy, you also have to take a credit counseling class within 180 of filing. This class is easy, only takes two hours and can be completed on line.

When most people ask, “can I qualify”, what they really mean is “can I do a Chapter 7” or “will I lose my property” or “is my income too high”. Even if you have a high income, you could file a Chapter 13 to restructure your debts. You may have to pay all your debts in full, but it would stop garnishments, penalties and interest. Debtors with over a million dollars of secured debt or over $300,000 is unsecured debt can not file a Chapter 13 and may have to file a Chapter 11 instead, which is usually reserved for businesses.

If your household earns over the median income for its size, you have to complete a means test to file a Chapter 7. The means test deducts expenses from your income to see if there is any money left over for a payment plan. If you file a Chapter 7 and the means test shows money left over in the budget, there is a presumption that you are abusing the bankruptcy system. This presumption can be overcome if you can show special circumstances showing the means test does not really tell the story of your situation and you should be allowed to proceed with a Chapter 7.

Another concern people have when they ask “do I qualify” is whether they can keep their property. Most property is exempt from being taken in bankruptcy. For instance, retirement accounts are 100% exempt. There are generous exemptions for equity in homes. In Washington, you can choose either federal or state exemptions which allows for a lot of flexibility in protecting your property.

Qualifying for some kind of bankruptcy is easy. The important question is whether it makes sense for you and choosing the right kind of bankruptcy if it does. It is important to talk to an experienced bankruptcy attorney to guide you through this decision.
The bankruptcy code allows any person or business to file bankruptcy. However, you can only file one Chapter 7 and get a discharge every 8 years. You have to wait four years to file a Chapter 13 after you file a Chapter 7 to get a discharge. However, you could file a Chapter 13 sooner – you won’t get a discharge but you can stop bill collectors while your restructure.

To qualify for a bankruptcy, you also have to take a credit counseling class within 180 of filing. This class is easy, only takes two hours and can be completed on line.

When most people ask, “can I qualify”, what they really mean is “can I do a Chapter 7” or “will I lose my property” or “is my income too high”. Even if you have a high income, you could file a Chapter 13 to restructure your debts. You may have to pay all your debts in full, but it would stop garnishments, penalties and interest. Debtors with over a million dollars of secured debt or over $300,000 is unsecured debt can not file a Chapter 13 and may have to file a Chapter 11 instead, which is usually reserved for businesses.

If your household earns over the median income for its size, you have to complete a means test to file a Chapter 7. The means test deducts expenses from your income to see if there is any money left over for a payment plan. If you file a Chapter 7 and the means test shows money left over in the budget, there is a presumption that you are abusing the bankruptcy system. This presumption can be overcome if you can show special circumstances showing the means test does not really tell the story of your situation and you should be allowed to proceed with a Chapter 7.

Another concern people have when they ask “do I qualify” is whether they can keep their property. Most property is exempt from being taken in bankruptcy. For instance, retirement accounts are 100% exempt. There are generous exemptions for equity in homes. In Washington, you can choose either federal or state exemptions which allows for a lot of flexibility in protecting your property.

Qualifying for some kind of bankruptcy is easy. The important question is whether it makes sense for you and choosing the right kind of bankruptcy if it does. It is important to talk to an experienced bankruptcy attorney to guide you through this decision.