Experiencing a financial crisis can be overwhelming, whether it happens unexpectedly or after years of debt. You may feel unsure and even ashamed of considering bankruptcy, but it is a viable option when you have few other places to turn. Done right, filing for Chapter 7 or Chapter 13 bankruptcy can get you back on your feet and help you rebuild your future.
At Symmes Law Group, PLLC, our consumer bankruptcy attorneys have the knowledge and compassion to help you begin again. Instead of working frantically to pay creditors, you can create a pause that lets you gather your resources and move forward. Contact us today to arrange a consultation with a qualified bankruptcy attorney serving Kirkland, WA.
Why You Should Trust Symmes Law Group With Your Bankruptcy Case
Bankruptcy cases are complicated and require attention to detail, coupled with experience and commitment. At Symmes Law Group, we avoid overloading our team with too many cases so we can give each client the care and focus they deserve. We keep you updated on our progress, preparing you for any appearances you may need to make and making sure you know where you stand.
By listening to your circumstances and moving quickly to handle the fine points in your case, you can spend your time handling your other important life matters. We gather documentation, prepare filings, and address your questions so you feel confident in your decisions and our abilities. We remind you that bankruptcy does not mean you have failed in life, but that you had the courage to use a vital legal method to start over.
How Washington Defines Bankruptcy
Although it may be used humorously to mean you feel low on funds, the term bankruptcy is actually a legal procedure. There are various types of bankruptcy, applying to companies, municipalities, and individuals. As one of our Kirkland, WA, bankruptcy clients, you will most likely pursue Chapter 7 or Chapter 13, which are used for individuals who need to resolve their outstanding debts.
The U.S. Bankruptcy Code describes the available bankruptcy types, which include:
- Chapter 7 – Oversees liquidating your assets to pay creditors
- Chapter 9 – Addresses bankruptcy for municipalities
- Chapter 11 – Defines how businesses reorganize themselves
- Chapter 12 – Specific to family farms and family fishing operations
- Chapter 13 – Allows you to reorganize your debt for payment without losing all your assets
There are two bankruptcy courts in our state, the Washington Eastern and the Washington Western. Kirkland falls under the Washington Western court. Our bankruptcy lawyers have deep experience in the rules of practice and procedures used in this venue, as well as the process of bringing a case and discharging your bankruptcy when it is complete.
Reasons Why You May File for Bankruptcy in Kirkland, WA
It is easy to feel the squeeze of handling your expenses when prices are rising every year, but your income is not. Sudden events, mounting debt, and forces outside your control can easily contribute to an inability to make payments on time for an extended period. Some of the most common reasons why people file for bankruptcy include:
- Losing your job through downsizing or company failure
- Getting hurt or sick, limiting your ability to work
- Divorce
- Unexpected medical debt after an injury
- Home or property foreclosure
- Medical expenses
- Credit card debt
- Excessive student loans
- Tax debt
When the bills continue to pile up and you have few ways to settle them, it may be time to talk to a bankruptcy attorney at Symmes Law Group. We can file the initial petition that allows you to stop collection actions, meaning no more phone calls, payment demands, or aggravating letters. You get a chance to reset and breathe while your case is under consideration.
The Bankruptcy Process in Washington
The first step is to speak with our bankruptcy lawyers serving Kirkland to discuss your current situation and finances. We can guide you through a checklist to inventory what you have, what you owe, and how you want to proceed. Our lawyers will determine the most appropriate path forward and educate you about what comes next.
We will file a petition to the Washington Western Bankruptcy Court on your behalf that includes all your income, debts, assets, and monthly expenses. After the court accepts the case, you benefit from an automatic stay that prevents lawsuits, creditor collection efforts, and wage garnishments until your case settles. You will meet with a bankruptcy trustee, and your lawyer will present your paperwork and represent your interests.
The court will examine every part of your finances, including homes and other property, savings accounts, retirement accounts, and vehicles. Once we have begun the process, we will help you prepare a plan of action to liquidate assets or reorganize your debt to meet the needs of your bankruptcy. You do not have to face this challenge alone because we will always be available to answer your questions.
Some Assets Are Exempt from Bankruptcy in Washington
You may assume that filing for bankruptcy will leave you homeless and penniless, but that is not true. While you may lose many of your assets, you can claim some personal property exemptions under Washington law if you have resided in Washington the last 2 years. To allow you to continue to work and pay your debts, you can retain the following:
- Your clothing, including a maximum of $3,500 in luxury apparel and accessories
- Any cell phone, computer, tablet, or other electronic device you need for work
- Any tools, instruments, materials, and supplies you use for work
- Tuition costs you purchased over two years before your bankruptcy filing
You will need to be careful when selecting what you want as an exemption, since the bankruptcy court may only allow one of these items. Your bankruptcy lawyer can advise you on making the best choice for your circumstances after a full examination of your finances and employment needs. In Washington you can also choose to use federal bankruptcy exemptions which allows for other protections as well.
What Is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy case is for those who have fewer assets and dischargeable debts, such as credit cards, loans, and similar liabilities. The court will assign a bankruptcy trustee for your case, and they will use a means test to inventory your assets and expenses. You must show that you do not have any appreciable income remaining after paying your expenses, and therefore, no funds with which to pay the debts.
The Role of a Trustee in Chapter 7 Bankruptcy
The trustee will take ownership of your assets and debts, leaving you with certain items, such as personal items, insurance policies, pensions, a reasonable vehicle, and any equity you have in your home. The trustee liquidates everything else, adds the proceeds to your existing funds, and distributes the money to your creditors. If there is not enough to satisfy all the debts, those debts get discharged, and you are no longer responsible for them.
How Chapter 7 Bankruptcy Can Benefit You
So, how does this help you? Although you lose control of your assets, the trustee settles your debts and eliminates anything greater than what you could pay. A bankruptcy can do some temporary damage to your credit score, but as long as you balance your liabilities in the future, you can rebuild it. Finally, Chapter 7 bankruptcies take less time than Chapter 13 cases, often as little as three to six months.
How Does Chapter 13 Bankruptcy Work?
If your income exceeds the median level during means testing, you likely qualify for a Chapter 13 bankruptcy plan. During this process, your bankruptcy lawyer will negotiate with your creditors to create a plan allowing you to make manageable payments on your debts. Your attorney will push for lower interest rates and other terms that make it easier for you to clear your debts over time.
The Role of a Trustee in Chapter 13 Bankruptcy
You will still work with a trustee in Chapter 13 bankruptcy, who will receive your payments and distribute them to your creditors. You can keep homes, vehicles, and other valuable property without experiencing foreclosure or repossession. If you have a second mortgage on a home, you may be able to reduce or eliminate it during your repayment period.
How Chapter 13 Bankruptcy Can Benefit You
Chapter 13 bankruptcy often lasts longer than a Chapter 7 case, since you must pay your debts in full over a negotiated time period, which is usually about three to five years. In Chapter 13, you have the ability to maintain control of most of your assets instead of simply liquidating everything. It has a similar effect on your credit history and score, but does not remain on your credit report as long as a Chapter 7.
Deciding Between Chapter 7 and Chapter 13
You do not choose which bankruptcy type to file so much as it chooses you. Your eligibility depends on your income and ability to pay after your expenses are factored into your means testing. When you need to consider your debt relief options, you should meet with our bankruptcy lawyers serving Kirkland. Symmes Law Group can help you determine which path will yield the best outcome for your situation.
When Chapter 7 May Be a Good Option
Chapter 7 is best when you want to eliminate as much debt as you can as quickly as possible. It allows you to keep vital assets but otherwise start with a clean slate, although not at rock bottom. Chapter 7 does risk losing more of your holdings, including non-exempt property and even your home. Yet, you can complete the process faster and get back on track with managing your finances prudently.
When Chapter 13 May Be a Good Option
Chapter 13 requires you to pay your debts in full, but you get more time to do so. You also do not risk losing assets because you cannot keep up with the payments. You may have the option to choose a Chapter 13 approach when you want to maintain your business, vehicles, equipment, or real estate, and can create a sustainable plan for paying your debts. When possible, your Chapter 13 bankruptcy lawyer will ask creditors to discharge debts, although certain liabilities are not dischargeable.
What Counts as a Non-Dischargeable Debt?
Your Kirkland bankruptcy attorney can often convince creditors to discharge credit card debt, personal loans, and certain other liabilities. This means the creditor forgives the debt, and you owe nothing more. However, there are some items that are non-dischargeable, including the following:
- Government fines, such as for criminal convictions or charges
- Student loans
- Tax liabilities, such as outstanding quarterly payments or taxes owed on previous years
- Child support and spousal support payments
- Debts related to fraud or willful misconduct
If you have substantial debts for any of these, they could present obstacles to successfully filing for bankruptcy. Our team can discuss how to handle non-dischargeable debts and what option is the right choice for your circumstances. There may be other choices if you are not eligible for Chapter 7 or Chapter 13.
What to Do If Bankruptcy Is Not the Right Choice for You
If you and your Kirkland bankruptcy lawyer discover that you are not eligible to file for Chapter 7 or Chapter 13, do not give up hope. Our lawyers may be able to work directly with creditors and achieve other options for paying down your debts. You may also be able to persuade creditors to allow a debt settlement plan, where you pay a smaller amount.
Settling a medical or credit card debt for a lower amount allows you to protect your credit score by not entering bankruptcy, and it lets the creditors receive something instead of nothing. These conversations can be complicated if you do not have negotiation experience, so it is wise to partner with Symmes Law Group and let us do the work for you. We always prioritize your best interests so you can put your life back in order.
Contact Our Experienced Bankruptcy Attorneys Serving Kirkland, WA
You do not have to keep risking your business, your future, or your family’s security when you speak with our bankruptcy attorneys in Kirkland, WA. At Symmes Law Group, we help you create a customized solution for your unique situation. By applying our experience and legal skill to your case, we can recommend credit counseling, loan modification, or bankruptcy filing to address your concerns with as little risk as possible. Schedule a free consultation and get started today.
