Struggling with business debt?

Washington Bankruptcy Defense Lawyers

Facing financial challenges? You’re not alone. Many people in Washington find themselves overwhelmed by debt due to unexpected life events like job loss, illness, or other financial setbacks. At Delancey Street, we understand the stress and anxiety that come with financial struggles, and we’re here to help you navigate the complex world of bankruptcy. Our experienced bankruptcy defense lawyers are dedicated to providing personalized, compassionate, and effective legal representation to help you achieve a fresh financial start.

Understanding Bankruptcy in Washington

Bankruptcy can be a powerful tool for individuals and businesses facing insurmountable debt. In Washington, bankruptcy cases are governed by federal law, but state-specific rules and exemptions also play a crucial role. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy involves the liquidation of non-exempt assets to pay off creditors. It’s often referred to as a “fresh start” bankruptcy because it allows you to discharge most unsecured debts, such as credit card debt and medical bills. However, not everyone qualifies for Chapter 7; you must pass a means test to determine your eligibility.

Chapter 13 Bankruptcy is designed for individuals with regular income who want to repay their debts over a three to five-year period. This type of bankruptcy allows you to keep your property while catching up on missed mortgage or car payments. It’s an excellent option for those who have fallen behind but can afford to make structured payments to their creditors.

Common Concerns About Filing for Bankruptcy

Will I lose my home or car? This is one of the most common questions we hear. In most cases, you won’t lose your home or car during bankruptcy as long as your equity in the property is fully exempt. Washington allows you to choose between federal and state exemptions, which can protect a significant amount of equity in your home and vehicle. However, if you have more equity than the exemption limits, you may need to pay the non-exempt value to keep the property.

How will bankruptcy affect my credit? A bankruptcy discharge will stay on your credit report for up to ten years for Chapter 7 and seven years for Chapter 13. While this can initially lower your credit score, many clients find that their credit begins to improve soon after their debts are discharged, as they are no longer burdened by unmanageable debt.

Can I file for bankruptcy more than once? Yes, but there are time limits between filings. For Chapter 7, you must wait eight years from the date of your previous filing. For Chapter 13, the waiting period is generally six years, with some exceptions.

The Bankruptcy Filing Process in Washington

Filing for bankruptcy involves several steps, and it’s crucial to understand the process to ensure a smooth experience. Here’s a brief overview:

1. Credit Counseling: Before filing, you must complete a credit counseling course from an approved agency within 180 days.
2. Filing the Petition: You’ll need to file a bankruptcy petition with the appropriate federal bankruptcy court in Washington. This includes detailed information about your debts, income, expenses, and assets.
3. Automatic Stay: Once you file, an automatic stay goes into effect, stopping most creditors from continuing collection efforts.
4. Meeting of Creditors: About a month after filing, you’ll attend a meeting of creditors (also known as a 341 meeting) where the bankruptcy trustee and your creditors can ask questions about your financial situation.
5. Discharge: For Chapter 7, you’ll typically receive a discharge within a few months. For Chapter 13, the discharge occurs after you complete your repayment plan.

Recent Legal Developments in Washington Bankruptcy Law

Washington has recently clarified the impact of bankruptcy on the statute of limitations for debt collection. In Copper Creek (Marysville) Homeowners Association v. Kurtz and Merritt v. USAA Federal Savings Bank, the Washington Supreme Court ruled that a bankruptcy discharge does not trigger the statute of limitations to enforce a deed of trust. This means that creditors can still pursue foreclosure on secured debts even after a bankruptcy discharge.

Why Choose Delancey Street?

At Delancey Street, we pride ourselves on our empathetic and client-centered approach. Here’s what sets us apart:

• Personalized Service: We understand that every financial situation is unique. Our attorneys take the time to understand your specific circumstances and tailor our legal strategies to meet your needs.
• Experienced Attorneys: With years of experience in bankruptcy law, we have the knowledge and skills to handle even the most complex cases.
• Compassionate Representation: We know that filing for bankruptcy can be an emotional and stressful process. Our team is here to support you every step of the way, providing compassionate and non-judgmental guidance.
• Comprehensive Legal Support: From initial consultation to post-discharge credit rebuilding, we offer comprehensive legal support to help you achieve long-term financial stability.

Call to Action

If you’re struggling with debt and considering bankruptcy, don’t wait. Contact us today for a free, confidential consultation. Let our experienced Washington bankruptcy defense lawyers help you take the first step toward a brighter financial future. Call us or visit our website to schedule your appointment. We’re here to help you every step of the way.

Table: Comparison of Chapter 7 and Chapter 13 Bankruptcy

At Delancey Street, we believe that everyone deserves a fresh start. Let us help you regain control of your financial future. Call us today to learn more about how we can assist you with your bankruptcy case in Washington.