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Do I Qualify?
Bankruptcy is more common across Washington State than most people realize. In fact, over 6,600 Washingtonians got debt relief from bankruptcy just last year. If you're in debt and thinking about filing for bankruptcy, you are not alone. You, too, can find relief if you qualify.
Our Lynnwood-based bankruptcy attorneys have been helping our neighbors across Washington State for over 30 years. We know how to use this powerful tool to get you relief from debt. Whether you're looking to protect your Meadowdale home from foreclosure, save your car from repossession in Martha Lake, or tackle overwhelming medical debt from UW Medical Center-Northwest or EvergreenHealth, we can help.
Call our Snohomish County law offices now to secure a free consultation and get the answers you need.
Do I Qualify For Chapter 7 In Washington State?There are two types of personal bankruptcy. The first type is the most common, and that is Chapter 7. Here are the qualifications you'll need to meet in Washington State to qualify for Chapter 7:
- Your income must be below the median for a household of your size in Washington State.
- If your income is above the median, you will have to pass the means test to qualify (11 U.S.C. § 707(b)(2)).
- You must have limited non-exempt assets that creditors can claim (11 U.S.C. § 522).
- You must complete a credit counseling session within 180 days before filing (11 U.S.C. § 109(h)).
- You cannot have a Chapter 7 bankruptcy in the last 8 years (11 U.S.C. § 727(a)(8)).
If you do not meet the qualifications to file for Chapter 7 in Washington State, you can consider Chapter 13.
Do I Qualify For Chapter 13 In Washington State?Many people who do not qualify for Chapter 7 qualify for Chapter 13. Chapter 13 is also a great option if you have valuable assets you want to keep. With Chapter 13, you'll work out a 3 to 5-year repayment plan to pay back your creditors. To qualify, you'll need to meet the following criteria:
- You earn a regular income (11 U.S.C. § 109(e)).
- Your unsecured debts must be less than $526,700.
- Your secured debts must be less than $1,580,125 (11 U.S.C. § 109(e)).
- You need to complete credit counseling and cannot have had a Chapter 13 discharge in the last 2 years (11 U.S.C. § 1328(f)(2)).
Our Lynnwood attorneys will help you determine which bankruptcy you qualify for in Snohomish County.
How Do I File For Bankruptcy In Lynnwood?Once we determine which chapter of bankruptcy you qualify for, we'll help you file. Here's what you will need to do:
- Before filing for bankruptcy in Lynnwood, you must complete a credit counseling class from an approved agency within 180 days.
- Prepare financial statements, a list of creditors, income details, and information about your assets and liabilities.
- Once you gather your paperwork, our attorneys will then submit your bankruptcy petition and related documents to the bankruptcy court for Lynnwood at:
Western District of Washington U.S. Bankruptcy Court
700 Stewart Street, Suite 6301
Seattle, WA 98101 - Approximately 20-40 days after filing, you'll attend a meeting that creditors (11 U.S.C. § 341) typically hold virtually or at the Seattle courthouse. At the meeting, creditors can question you under oath about your financial situation.
- After you file for bankruptcy, you must complete a debtor education course from an approved provider before the courts will discharge your debts.
- Once you complete the bankruptcy process, the Snohomish court will issue a discharge, relieving you of your eligible debts.
Q: What does it cost to file for bankruptcy in Lynnwood?
A: In Snohomish County, a Chapter 7 bankruptcy has a filing fee of $338, and $313 for a Chapter 13 bankruptcy. If you can't afford the fee, you might qualify for a waiver in Chapter 7 or be allowed to pay in installments. Keep in mind that attorney fees are separate and vary based on the complexity of your case.
Q: What will happen to my home and car if I file for bankruptcy in Washington State?
A: It depends on whether you file for Chapter 7 or Chapter 13. Washington State has homestead exemptions that protect up to $125,000 of equity in your primary residence under RCW 6.13.030. You can exempt up to $3,250 of equity for your car (RCW 6.15.010). If your equity exceeds these limits, the bankruptcy trustee could sell the asset to pay creditors in Chapter 7. In Chapter 13, you can keep both if you stay current on payments.
Q: Can I own anything after filing for bankruptcy in Washington?
A: Absolutely. Bankruptcy wipes out your eligible debts, but it doesn't stop you from owning things in the future. You can buy a car or a house or start saving again. Certain assets, like retirement accounts and household goods, are protected during bankruptcy under federal and state exemptions.
Q: Will I have to go to court in Snohomish County if I file for bankruptcy?
A: Not exactly. Federal courts handle bankruptcy cases, so you won't be going to Snohomish County Superior Court. However, you will need to attend the 341 Meeting of Creditors, usually held remotely or at the Seattle division of the U.S. Bankruptcy Court. It's a short, straightforward meeting where the trustee asks questions about your case.
Q: Will bankruptcy affect my credit?
A: Yes, but not forever. Chapter 7 stays on your credit report for 10 years, while Chapter 13 stays for 7 years. That said, many people start rebuilding their credit within a year or two by getting a secured credit card or making on-time payments. If your credit was already struggling, bankruptcy can actually help by wiping out debt.
Q: Can I still get a credit card after I file for bankruptcy in Lynnwood?
A: Yes, you usually can. After bankruptcy, many lenders offer secured credit cards, which require a refundable deposit but function like regular credit cards. Using one responsibly by keeping your balance low and paying on time can help rebuild your credit. Under RCW 19.108.010, Washington State law protects consumers from unfair credit practices, ensuring they have a path to financial recovery. Within a couple of years, you may qualify for unsecured credit cards again.
Ready to learn if you qualify for debt relief through bankruptcy? Call our Lynnwood law offices now to schedule a free consultation. Our experienced lawyers will review your financial circumstances and determine if you qualify for bankruptcy relief in Snohomish County.
