Seattle // (206) 387-8500 - King Co.
Seattle is known as “The City of Flowers” and it’s citizens can fall into hard times as much as anyone else in Washington State. The cheapest and most affordable way to get out of crushing debt is filing for bankruptcy in Seattle Washington. Being hounded by bill collectors is something nobody should have to experience. The only other option you have is ignoring the debt and hope it disappears with time. Although most people in Seattle do try to settle their outstanding debts, only to encounter a pushy debt settlement agency that costs hundreds every month.
Why Bankruptcy?
Filing for Bankruptcy in Seattle Washington is often the cheapest and most predictable way to get out of oppressive debt. Your other options include ignoring certain debt and hoping it will go away or trying to settle your debt. Some people try to settle their debt through a Seattle debt settlement agency. Ignoring or settling your debt will negatively impact your credit report – probably as much as a Washington bankruptcy would. 
A Seattle Washington bankruptcy basically cancels your debt so you will never have to pay it in the future. This is called a “discharge” because it cancels the debt to your name. Not all debt is discharged in a Seattle Washington bankruptcy. Some exceptions to the discharge include fraudulent debt, student loans, taxes and child support. It is not always cut and dry as to what debt can be discharged and you should talk to an attorney about what debt will be discharged in a Washington bankruptcy. We offer affordable payment plans for people living in Seattle Washington.
After you file for bankruptcy in Seattle, you automatically have something called an “Automatic Stay“, then you start the discharge process which puts your creditors on hold that you will not pay a certain debt and they know at that point they need to remove that debt from their books. If you are able to pay some debt in your Seattle Washington bankruptcy, the case allows creditors a legal and fair way to share. Usually they get nothing in a Chapter 7 case, but may be able to share some money from the sale of property. A Chapter 13 allows them to share a monthly payment that you make for three to five years.
Chapter 13 Bankruptcy in Seattle
When you do a Chapter 13 bankruptcy plan, it allows you to spread the debt evenly over the course of 3 to 5 years. You pay all your debt back, following a predictable and legal procedure that allows all creditors to see what each other is getting in the payments. This is one of the reasons why non-bankruptcy debt consolidation plans fail, they don’t want to accept less than another company who is also owed money.
Many of our thousands clients are surprised when we tell them that they can keep most of their property when they file for Bankruptcy in Seattle. Because like most necessities, property is “exempt” from being taken away by the courts to pay your debt back. There is a lot of flexibility when it comes to exemptions in Seattle Washington, because you can pick whether to follow Washington laws or Federal bankruptcy laws to exempt your property. You could have some property that you want to keep, and you may be able to protect it by simply paying your creditors the value of the property over the term of a Seattle Chapter 13 plan. As you can see, it is important to talk to an experienced Seattle Washington bankruptcy attorney if you are at all concerned about your property.
Chapter 7 Bankruptcy in Seattle
A Chapter 7 Seattle Washington bankruptcy is knows as a liquidation, because there is a possibility that some of your property could be liquidated or sold to pay off part of your debt. This applies when you have insufficient cash flow to cover a payment plan in a Chapter 13 Seattle bankruptcy. The court looks for property that can be sold to pay back your debt, but the law allows exemptions for most household goods, retirement plans, modest cars , equity in most homes and other necessities. Realistically, the vast majority of people who file Chapter 7 in Seattle Washington do not have to give up any of their property. Most people who file for Chapter 7 in Seattle don’t lose any of their property because it’s protected by law, though if they want to keep things like cars and homes they are making payments for, they have to keep making the payment. Under the current law, you can file only one Seattle Chapter 7 Washington bankruptcy every 8 years.
What are the differences between Chapter 13 and Chapter 7?
The current Seattle Washington bankruptcy law requires people who make over the median income to go through a “means test” to determine whether they should be required to go through a Chapter 13 repayment plan. Even if your household makes more than the average, you may still qualify for a Chapter 7 depending on your expenses. Otherwise, you must file a Chapter 13 repayment plan.
The benefits of bankruptcy.
- Some types of debt are immediately discharged.
- You can keep some or most of your property, in some cases.
- Your cash flow is immediately increased.
One of the key aspects of filing for Seattle Washington bankruptcy is the increase of your cash flow. Consider talking to an experienced Seattle Washington Attorney if you are thinking about filing for bankruptcy. You can either keep staying current on your debt payments and it’s obvious that you will never get ahead or you simply cannot make your debt payments.
If you stop paying the bills, any creditor can sue you and garnish your wages, which means 25% of your take-home pay after taxes will be immediately deducted by the creditor to pay back the debt.
What about my home foreclosure?
The bankruptcy laws in Seattle Washington give you the right to a fresh start so you don’t feel like there is no point in working, being productive and improving yourself. There is a pressure valve in our economic system, it allows our economy to be more productive overall and has been part of the US Constitution since it was written. Basically, it lets you get back on track with a realistic cash flow so you feel like you are working for a better future for you and your family, not your creditors with no light at the end of the tunnel. Remember we also offer affordable payment plans.
Call Erin Lane in Seattle (206) 387-8500
Chapter 7 Bankruptcy in Seattle Washington.
Chapter 13 Bankruptcy in Seattle Washington.
The differences between Chapter 7 and Chapter 13.
We have Affordable Payment Plans.
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