Do I Qualify?

When you find yourself completely overwhelmed by debt in Wenatchee, Washington, bankruptcy can provide relief. However, not everyone qualifies. A Wenatchee bankruptcy attorney can discuss your options with you and see if you are eligible for a fresh start with bankruptcy.

Bankruptcy Options in Wenatchee, Washington

The two most common bankruptcy types for individuals in Washington are:

• Chapter 7 Bankruptcy: This is also known as a liquidation bankruptcy and can eliminate most of your unsecured debts, like credit cards and medical bills.
• Chapter 13 Bankruptcy: This is also commonly known as a wage earner’s bankruptcy and allows you to repay your outstanding debts through a court-approved plan that lasts between three and five years.

Each type of bankruptcy in Wenatchee has different qualification requirements based on your income, assets, and other financial factors. Your bankruptcy attorney can help you determine which would be right for your particular situation.

Do You Qualify for Chapter 7 Bankruptcy?

To qualify for Chapter 7 bankruptcy, you will have to pass the Means Test, which compares your income to Washington State’s median income.

Washington State Income Limits

This information is updated for 2025 and lists the monthly median income per household size.

• One-Person Household: $5,736
• Two-Person Household: $7,502
• Three-Person Household: $9,267
• Four-Person Household: $11,032

Add $331 for each additional household member. If your income falls below the median, you automatically qualify. If your income is above the median, you may still qualify after you deduct your necessary expenses.

Other Chapter 7 Requirements

• You must not have received a Chapter 7 discharge in the last eight years (11 U.S.C. § 727)
• You have to complete a credit counseling course from an approved agency (11 U.S.C. § 109(h)).

Do You Qualify for Chapter 13 Bankruptcy?

If you earn too much money to qualify for Chapter 7 or want to keep your assets like your home, then Chapter 13 might be a better fit for you.

To Qualify for Chapter 13

• You must have a regular income so you can prove you can make the required monthly payments.
• Your total secured debt (mortgages and car loans) has to be below $2,750,000.
• Your total unsecured debt (credit cards and medical bills) also has to be below $2,750,000.
• You must not have filed for Chapter 13 within the last two years.

Your Wenatchee bankruptcy attorney can review your financial situation and help you determine the right approach for you to take to help with your debt.

Washington State Laws and Exemptions

Washington allows you to choose between federal and state exemptions when you file for bankruptcy in Chelan County. These exemptions protect certain assets of yours during the bankruptcy process.

• Washington Homestead Exemption: Up to $125,000 of equity in your primary residence (RCW 6.13.030)
• Personal Property Exemptions:

  Exempt property is outlined in RCW 6.15.010

  • Motor vehicle equity up to $3,250
  • Household goods and clothing up to $6,500 per person
  • Tools of the trade up to $10,000
    
• Wildcard Exemption: Up to $3,000 in any personal property

If you live in Chelan County, it is advisable to work with a bankruptcy attorney who is familiar with the local courts and bankruptcy trustees.

Bankruptcy for Servicemembers

Active duty military personnel and veterans may have special protections and considerations under bankruptcy law. The Servicemembers Civil Relief Act (SCRA) provides benefits such as:

• Protection from foreclosure and repossession while on active duty
• A potential waiver of the Chapter 7 means test if more than 50% of your income is from military service
• Extended deadlines and protections against default judgments

If you are a servicemember in Chelan County considering bankruptcy, consulting a Wenatchee bankruptcy attorney who understands military financial concerns is recommended.

The Process of Filing for Bankruptcy in Wenatchee

1. Consult a Wenatchee Bankruptcy Attorney: Consult an attorney and assess your eligibility.
2. Complete Credit Counseling: This is required 180 days before you file.
3. File Your Bankruptcy Petition: This should include detailed financial disclosures and exemption claims.
4. Automatic Stay Begins (11 U.S. Code § 362): This means your creditors must stop all collection actions immediately, and this stays in place for the duration of your bankruptcy case.
5. Attend the 341 Meeting: A bankruptcy trustee reviews your case and asks questions about your financial situation.
6. Follow All Court Orders: Complete any required courses and meet all your payment obligations (Chapter 13 filers).
7. Debt Discharge: In Chapter 7, debts are eliminated in 4-6 months, while Chapter 13 discharges the remaining debt after you complete your payment plan.

Frequently Asked QuestionsWhy You Need a Wenatchee Bankruptcy Attorney

Filing for bankruptcy can quickly prove to be a complicated process, especially when you aren’t familiar with the laws. A bankruptcy attorney in Wenatchee can help ensure that your case is filed correctly while preventing costly mistakes that could lead to dismissal or asset loss.

Our skilled attorneys will analyze your financial situation to determine the right type of bankruptcy for you. We will then help you navigate Washington’s exemption laws to protect your home, car, and other assets and handle all the paperwork and filings, so your case is not delayed.

We can give you peace of mind and increase the likelihood of a successful outcome. If you are in Wenatchee, Washington, and considering bankruptcy, one of our local attorneys can provide you with the guidance and representation you need.

---