Chapter 13 bankruptcy is less common across Washington State, making up only 24% of bankruptcies statewide. Even though it is not as common as Chapter 7, Chapter 13 helped over 243 of our neighbors across Snohomish County last year. This type is typically for people who want to keep their assets during bankruptcy.
If you're wondering if Chapter 13 is right for you, call our Lynnwood attorneys. We've helped people in Meadowdale save their homes from foreclosure, worked with families in Lake Serene to stop wage garnishments, and assisted professionals working in Lynnwood City Center through debt restructuring. We've also helped clients in Lake Stickney keep their vehicles and protected retirees in Martha Lake from losing their savings. No matter where you are in Snohomish County, we know the courts, the trustees, and how to build a plan that works for your life. Let's see if Chapter 13 is the right path forward for you.
How Does Chapter 13 Work In Washington State?Think of Chapter 13 as a court-approved repayment plan, not wiping the slate totally clean like Chapter 7. Instead, you are reorganizing your debts into something you can manage over time. You keep your property, stop collections, and pay back what you can over 3 to 5 years.
So, if you're falling behind on payments but still have a steady income, Chapter 13 will buy you time, stop the pressure, and give you a path forward.
What Do I Need To Qualify For Chapter 13?To file for Chapter 13 in Washington State, you need to meet a few basic eligibility rules under federal law. You don't have to be perfect. You just have to prove you have enough income to follow through. Here's how to qualify:
If you check those boxes, you're probably in good shape to move forward with Chapter 13.
Our Attorneys Answer Your Chapter 13 FAQsA: Which Chapter you file for depends on your income, assets, and financial goals. Chapter 7 is often the faster and cheaper option of the two, as it clears most unsecured debts in about 3-4 months. However, you have to qualify through something called the Means Test (based on your income and expenses under 11 U.S.C. § 707(b)). Chapter 13, on the other hand, is a payment plan over 3 to 5 years. It's a good fit if you're behind on your mortgage, trying to save your car from repossession, or if you don't qualify for Chapter 7. We'll help you figure out which option is right for you based on your full financial picture.
A: The timeline of your repayment plan comes down to your income. If your monthly income is below the Washington State median for your household size, you'll likely be in a 3-year plan. If you're above the median, the court will usually require a 5-year plan, as laid out in 11 U.S.C. § 1325(b). That's based on IRS and Census Bureau income standards and updated annually. We'll run those numbers with you before you file so you're not caught off guard.
A: You won't go to a traditional courtroom. Instead, you'll attend a 341 Meeting of Creditors, which is a required part of any bankruptcy case under 11 U.S.C. § 341. If you live in Lynnwood, your meeting will be scheduled by the U.S. Bankruptcy Court for the Western District of Washington, usually in Everett or Seattle. These meetings are held by phone or Zoom most of the time, so you probably won't have to appear before a judge unless there's a dispute in your case.
A: All Chapter 13 payments go to the Chapter 13 Trustee assigned to your case, not directly to your creditors. In Snohomish County, your trustee is likely to be Jason Wilson-Aguilar (or Michael G. Malaier), who serves the Western District of Washington. Payments can be made online through www.TFSbillpay.com, by mail, or through wage deductions if the court approves them. We'll make sure you're set up correctly from the start.
A: Let your Lynnwood Chapter 13 bankruptcy attorney know right away. If you miss a payment, the trustee can ask the court to dismiss your case. However, there are options if we act quickly. We can modify your plan, ask for a temporary suspension, or even consider converting your case to Chapter 7. The court understands that life happens, but they need you to follow the rules and keep them updated. The earlier we address it, the more flexible the options.
Schedule your free Chapter 13 consultation by calling our Snohomish County law offices today.