Washington State Bankruptcy

What is a Washington State Bankruptcy - Chapter 13

A Chapter 13 Washington State bankruptcy is often called a reorganization bankruptcy. This type of Washington State bankruptcy allows individuals to pay off certain types of outstanding debts over a three to five year period. For those individuals who have non-exempt assets they do not want to liquidate (houses, cars, boats, etc.), the Chapter 13 bankruptcy is the preferred choice. People with predictable income available after their basic expenses are paid each month might also choose this type of Washington State bankruptcy.

Why Should I Choose Chapter 13 Bankruptcy?

With a Chapter 13 Washington State bankruptcy you can prevent a foreclosure on your house, make up missed payments for cars or mortgages, pay back taxes and stop interest accrual on various tax and other debts. Once the plan is established, if you stick to it, your remaining dischargable debt will be released. Repayment amount must be high enough to match or exceed the amount of money a creditor would have received in the case of a Chapter 7 bankruptcy.

You must have a dependable income source in order to file Chapter 13 and you must have enough disposable income left after basic expenses to follow the repayment plan. If you have secured assets like a house or a car that you are not willing to liquidate in order to pay your debts, then Chapter 13 bankruptcy might be the right choice for you. However, for the majority of individuals wanting to clear their debts and start fresh, Chapter 7 bankruptcy is the better option.

What is the Process for Chapter 13 Bankruptcy?

Before you can file for Chapter 13 Washington State bankruptcy, you are required to go through a credit counseling briefing. During this session, you will work on creating a personal budget and discuss alternatives to bankruptcy. Unless you receive an exemption from the briefing, you are required to go or your case will be dismissed.

After you complete your credit counseling, you will work with an attorney and bankruptcy trustee to prepare and file your Washington State bankrupcty paperwork. When all paperwork has been accepted, you will be required to attend a debtor education course. This course will last from 60 to 90 minutes and will help you establish a healthy financial future. Once you have completed this class, your Chapter 13 bankruptcy can be completed.