Seattle, WA Bankruptcy Defense Lawyers: Your Financial Lifeline
Are you drowning in debt and feeling like there’s no way out? We’ve got your back. At Delancey Street, we understand the stress and anxiety that comes with financial troubles. That’s why our team of experienced Seattle bankruptcy defense lawyers is here to throw you a lifeline and help you navigate the choppy waters of bankruptcy.
Understanding Bankruptcy in Seattle: Your Fresh Start Awaits
Let’s face it – bankruptcy can be scary. But it doesn’t have to be. In fact, it could be your ticket to a fresh financial start. Here in Seattle, we’ve seen countless clients turn their lives around through strategic bankruptcy filings.
Bankruptcy laws are designed to give honest debtors a chance to wipe the slate clean and start over. Whether you’re dealing with overwhelming medical bills, credit card debt, or a failed business venture, bankruptcy can offer relief. But it’s not a one-size-fits-all solution. That’s where we come in.Our Seattle bankruptcy defense team knows the ins and outs of Washington state and federal bankruptcy laws. We’ll analyze your unique situation and help you determine if bankruptcy is the right move for you. And if it is, we’ll be with you every step of the way.
Chapter 7 vs. Chapter 13: Which Path is Right for You?
When it comes to personal bankruptcy, you’ve got options. The two most common types for individuals are Chapter 7 and Chapter 13. But how do you know which one is right for you? Let’s break it down:
Chapter 7 Bankruptcy: The Fresh Start Option
Chapter 7, often called “liquidation bankruptcy,” is like hitting the reset button on your finances. Here’s what you need to know:
- It’s typically faster than Chapter 13 (usually 3-6 months)
- It can wipe out most unsecured debts (credit cards, medical bills, etc.)
- You may have to give up some non-exempt assets
- Not everyone qualifies – there’s a means test involved
In the landmark case of Marrama v. Citizens Bank of Massachusetts, 549 U.S. 365 (2007), the Supreme Court affirmed that the right to convert from Chapter 7 to Chapter 13 is not absolute, emphasizing the importance of good faith in bankruptcy proceedings.
Chapter 13 Bankruptcy: The Repayment Plan
Chapter 13, on the other hand, is more like a financial restructuring. Here’s the lowdown:
- It involves a 3-5 year repayment plan
- You can keep your assets while catching up on missed payments
- It’s good for those with regular income who want to save their home from foreclosure
- It can help you deal with non-dischargeable debts like student loans
The case of Hamilton v. Lanning, 560 U.S. 505 (2010), was a game-changer for Chapter 13 filers. The Supreme Court ruled that bankruptcy courts should consider changes in income or expenses that are known or virtually certain when projecting disposable income for Chapter 13 plans.
The Automatic Stay: Your Financial Shield
One of the most powerful tools in bankruptcy is the automatic stay. As soon as you file, it’s like putting up a force field around your finances. Creditors have to STOP:
- Harassing phone calls
- Foreclosure proceedings
- Wage garnishments
- Utility shut-offs
But here’s the catch – the automatic stay isn’t permanent. In Midlantic National Bank v. New Jersey Department of Environmental Protection, 474 U.S. 494 (1986), the Supreme Court held that the automatic stay has limits, particularly when it comes to environmental regulations.
That’s why having a skilled Seattle bankruptcy lawyer in your corner is crucial. We’ll help you make the most of the automatic stay while preparing for the next steps in your financial recovery.
Exemptions: What Can You Keep?
One of the biggest concerns our clients have is, “Will I lose everything?” The good news is, probably not. Washington state has some generous exemptions that can help you protect your assets. Here’s a quick rundown:
| Asset Type | Washington State Exemption |
|---|---|
| Homestead | Up to $125,000 in equity |
| Personal Property | Up to $3,000 |
| Vehicle | Up to $3,250 in equity |
| Retirement Accounts | Fully exempt |
Remember, these are just the basics. There are many more exemptions available, and federal exemptions might be more beneficial in some cases. In Law v. Siegel, 571 U.S. 415 (2014), the Supreme Court emphasized the importance of statutory exemptions, ruling that bankruptcy courts cannot override these exemptions based on equitable considerations.
Our Seattle bankruptcy defense team will work tirelessly to help you keep as much of your property as possible. We know the exemption laws inside and out, and we’ll use every legal tool at our disposal to protect your assets.
The Means Test: Do You Qualify?
Before you can file for Chapter 7 bankruptcy, you’ll need to pass the means test. This test was introduced in 2005 to prevent high-income filers from abusing the system. Here’s how it works:
- Compare your income to the Washington state median
- If you’re below the median, you automatically qualify
- If you’re above, we’ll need to look at your expenses to determine eligibility
The means test can be complicated, but don’t worry – we’ve got your back. Our Seattle bankruptcy lawyers have helped countless clients navigate this process successfully.
In Ransom v. FIA Card Services, N.A., 562 U.S. 61 (2011), the Supreme Court provided important guidance on how to calculate expenses for the means test, emphasizing that only actual expenses should be considered.
The Role of the Trustee: Your Financial Overseer
When you file for bankruptcy, a trustee will be appointed to oversee your case. Think of them as a financial referee. Their job is to:
- Review your bankruptcy petition
- Sell non-exempt assets (in Chapter 7 cases)
- Distribute funds to creditors
- Conduct the 341 meeting of creditors
The trustee plays a crucial role in your bankruptcy case. In Harris v. Viegelahn, 575 U.S. 510 (2015), the Supreme Court clarified the trustee’s duties when a Chapter 13 case is converted to Chapter 7, emphasizing the importance of proper fund distribution.
Our Seattle bankruptcy defense team has extensive experience working with trustees. We’ll help you prepare for the 341 meeting and ensure that all your paperwork is in order to keep your case moving smoothly.
Life After Bankruptcy: Rebuilding Your Financial Future
Bankruptcy isn’t the end – it’s a new beginning. After your debts are discharged, you’ll have the opportunity to rebuild your credit and create a stronger financial foundation. Here are some tips to get you started:
- Create a budget and stick to it
- Start an emergency fund
- Consider a secured credit card to rebuild credit
- Make all payments on time
- Monitor your credit report regularly
Remember, bankruptcy will stay on your credit report for up to 10 years. But don’t let that discourage you. Many of our clients see their credit scores start to improve within a year or two after filing.
In FCC v. NextWave Personal Communications Inc., 537 U.S. 293 (2003), the Supreme Court affirmed that bankruptcy can provide a fresh start, even for businesses with government licenses.
Why Choose Delancey Street for Your Seattle Bankruptcy Defense?
When it comes to something as important as your financial future, you need a team you can trust. Here’s why our Seattle clients choose us:
- Experience: We’ve helped thousands of Seattle residents navigate bankruptcy successfully.
- Personalized Approach: We treat you like a person, not a case number.
- Comprehensive Service: From initial consultation to post-bankruptcy planning, we’re with you every step of the way.
- Aggressive Advocacy: We fight tirelessly to protect your rights and assets.
- Clear Communication: We explain complex legal concepts in plain English.
Don’t let financial stress control your life any longer. Contact our Seattle bankruptcy defense team today for a free consultation. Remember, bankruptcy isn’t the end – it’s a new beginning. And we’re here to help you make the most of it.
CALL TO ACTION: Ready to take control of your financial future? Don’t wait another day. Contact Delancey Street now for a free consultation with our experienced Seattle bankruptcy defense lawyers. Your fresh start is just a phone call away!