How Do I Know Which Type of Washington State Bankruptcy to File?
Washington State bankruptcy comes in two flavors: Chapter 13 and Chapter 7. The two choices vary greatly and, after a bit of research, you should be able to choose which one is correct for your situation. For example, if you have assets like a house or car you would like to keep, Chapter 13 is basically the only choice for you. However, if you do not have a regular income with money left over after you pay all your basics, they you will want to opt for Chapter 7. This article is meant to be a quick list of the basics of each type of Washington State bankruptcy so you will have a better idea of what your choices are.
The Basics of Chapter 7 Washington State Bankruptcy
- A Chapter 7 bankruptcy is a fresh start. The only debts you will own after your debts are discharged are those secured assets for which you signed a reaffirmation agreement.
- You lose your non-exempt property that is not covered by Washington State bankruptcy exemptions.
- Neither creditors nor the bankrupcty court can touch your wages and assets aquired after the discharge.
- Co-signers of loans must file for bankruptcy protection or they can be held liable for your debts.
- Collection efforts and wage garnishment is immediately stopped as of the file date.
- There is no minimum amount of debt required to file for Chapter 7 Washington State bankruptcy.
- Most Chapter 7 bankruptcy cases are completed in 3-6 months.
- Chapter 7 Washington State bankruptcy can be filed only once every six years.
- In the event that your home is facing foreclosure prior to you filing Washington State Bankruptcy, the stay will only be temporary and you will still be facing disclosure.
The Basics of Chapter 13 Washington State Bankruptcy
- If you qualify for Chapter 13 bankruptcy, you are able to retain all exempt and non-exempt assets and property.
- Debts can be reduced
- You can file Chapter 13 Washington State bankruptcy any time and as many times as you want.
- Your payment plan can often tie up your cash during the Chapter 13 payment period.
- A standard payment plan lasts 3 to 5 years and your debts will remain during that time.
- You will have more time to pay back debts that are not part of your payment plan.
- Creditor collection and garnishment is stopped.
- Many debts are dischargable under Chapter 13 bankruptcy.
- You can protect against home foreclosure while you are meeting the terms of your Washington State bankruptcy repayment plan.
- Chapter 13 is more complex and this means that filing Chapter 13 is more expensive.
- The maximum debt amount for filing is $1,000,000 - Secured debts less than $750,000 and unsecured less than $250,000.
- You are ineligible to file for Washington State Chapter 13 bankruptcy if you are a commodity or stock broker.
By comparing your situation with the basics listed above, you should have a good idea about what type of Washington State bankruptcy would be best for you. This information should not substitute for the professional advice and information provided by an attorney. There are other factors you will need to consider. This site is designed to provide you with basic information about your options.