Chapter 7 Bankruptcy Attorney in Seattle, WA

Financial hardship is incredibly stressful and can put a strain on your relationships and ability to make ends meet. When debts get out of hand and become greater than your income, it can be difficult to keep up with payments or make positive progress. While it may seem scary, filing for Chapter 7 bankruptcy can actually provide much-needed relief and allow you to get a better foothold on your finances moving forward. A Chapter 7 bankruptcy attorney in Seattle, WA can help you navigate the process. 

At Symmes Law Group, we help you discharge your unsecured debt so you can start with a clean slate. Our experienced team of attorneys will carefully and thoroughly assess your financial situation so you can get maximum results in your case. We take the time to answer your questions and help you feel confident about your next step. Our team is also equipped to handle any complications or legal obstacles that arise during the process, so you do not lose the opportunity to have your debts discharged.

Understanding Chapter 7 Bankruptcy in Seattle, WA

Chapter 7 bankruptcy provides debt relief for qualified individuals and businesses. Known as the “fresh start” bankruptcy, Chapter 7 of the United States Bankruptcy Code allows debtors to discharge most, if not all, of their unsecured debt. This may include credit card debt, medical bills, repossessions, and payday loans. In essence, it allows you to get a fresh start and begin rebuilding credit immediately. A lawyer can walk you through the basics of Chapter 7 bankruptcy so you understand what to expect. 

Who Should Consider Filing for Chapter 7 Bankruptcy

There are many reasons why people file for bankruptcy in Seattle, and oftentimes it is the result of unexpected life circumstances. We usually see clients who have suffered a significant event or financial loss that prevents them from keeping up with their financial obligations. When this happens, these individuals may need to file for Chapter 7 bankruptcy to get the financial relief they need.

Some common examples of why clients may file for bankruptcy include:

• Job loss or a decrease in income
• Unexpected and/or extensive medical expenses
• Excessive credit card debt
• Divorce
• Foreclosure on a home
• Unsecured loans
• Student loans
• Taxes
• Failed business venture
• Other unexpected expenses

If you find yourself in one of these situations and are overwhelmed by your financial situation, Chapter 7 bankruptcy may help you reset and work toward a better financial future. You should consult with a lawyer before taking any further action to make sure this step makes sense for your situation.  

The Chapter 7 Bankruptcy Filing Process in Seattle, WA

Filing for bankruptcy is a big step that can feel overwhelming. It is normal to be unsure about how to proceed, which is why it is important to consult a Chapter 7 bankruptcy lawyer in Seattle, WA. An attorney can walk you through each step of the process below and prepare you for what to expect. They will also guide you through all other actions required in your case.

Determine Eligibility

The first step in filing for Chapter 7 bankruptcy is to figure out whether you qualify. Your attorney will review your family’s income, household size, assets, and other documents. With this information, they will perform a means test calculation to determine if you are eligible. This measures your monthly income against the median income of similar-sized households. If you are below the median threshold, you may be eligible for Chapter 7 bankruptcy. If above, additional forms may be required.

Gather Documents and Complete Questionnaire

You will need to gather documents and complete a questionnaire in which you will be required to list all of your assets, income, expenses, and debts. You will also need to provide information related to specific bankruptcy-related questions.

Additionally, you must provide your last two years of tax returns, last six months of pay stubs, a signed retainer agreement, and any third-party debt collection notices that you may have received. 

Attend Credit Counseling and Financial Management Courses

Before filing for Chapter 7 bankruptcy, you will also need to complete an online credit counseling class. The course will help evaluate your options and create a plan to resolve your debts so you can move forward. You will also be required to attend a second class before your debts can be discharged, which focuses on financial management.

By participating in credit counseling and financial management, you can continue through the bankruptcy process and improve your future.

Wait for Your Lawyer to Prepare Your Bankruptcy Petition

Once your lawyer receives all of your documents and information, they will prepare your petition to file with the Federal Bankruptcy Court. During the process, a copy of your most recent credit report will be obtained, and your attorney will follow up if additional information is needed. The petition will declare your intention, provide information about your assets and debts, introduce the bankruptcy trustee, and include any other information relevant to your case.

Review, Sign, and File Your Chapter 7 Bankruptcy Petition

After the bankruptcy petition is filed, you will need to review it to make sure that all the information is accurate. If any changes are required, we can make them at this time. You will sign your petition once all the information has been verified. After that, your lawyer will file your petition with the court, which often happens the same day.

Benefit From the Automatic Stay

Once we file your case, the automatic stay period will begin. The automatic stay is required by federal bankruptcy law, which says that creditors may not collect on debts without first getting relief from the automatic stay by the bankruptcy court, which is rare. This means that after we file your bankruptcy petition, we can stop wage garnishments and harassing phone calls. This feature essentially freezes all collection efforts until the court reviews and rules on your petition. 

Attend a Section 341 Hearing After Your Bankruptcy Petition is Filed

As soon as your Chapter 7 bankruptcy case is filed, the court will automatically assign you a bankruptcy 341 hearing court date. This court date usually occurs within 30 days of when you filed for bankruptcy. Attendance at the meeting is mandatory, and you will need to make arrangements to attend the court hearing in advance. If you live in King County, your meeting will most likely be held on a Thursday and will be located at the Federal Court in downtown Seattle, WA.

What to Expect at the Section 341 Hearing

At the meeting, you and your attorney will meet with a bankruptcy trustee who has been assigned to your case. The Chapter 7 bankruptcy trustee has a duty to represent all of the creditors in your case. They review your bankruptcy petition and assets to make sure you don’t have any that are above the exemption limits.

The trustee will also look to see if you made any asset transfers that you were not supposed to make. If you do not have any assets that are above the exemption limits, then your meeting will go by quickly. The trustee is primarily interested in your case if there are any assets that can be liquidated for the benefit of your creditors. 

How Long Will the 341 Hearing Last?

For most debtors, the bankruptcy hearing goes by quickly and generally lasts a total of 5 minutes. With that said, you should plan to be at court for about an hour, as there could be 10 or more other cases on the calendar at the same time as yours, and you may have to wait for your turn.

Complete Financial Management Education Course

After your section 341 hearing, you must attend the second credit counseling class called Financial Management. This must be done within 60 days of your 341 hearing, or else your case could be closed without discharge. Provide the certificate of completion to your attorney to file with the court.

If you have completed the financial management course, you will receive a discharge order from the bankruptcy court within 60 days of your 341 hearing and 90 days from when your case was filed. 

Discharging Debts and What Exceptions Apply

When the court approves your petition, you are cleared for discharge in bankruptcy. The discharge order is very generic and states that you have been discharged of your debts and are no longer liable for repayment. This process may take approximately 60 days to complete, give or take. Soon after the discharge notice is issued, your case will be formally closed, and the process will be complete. This also means that creditors can no longer contact you. 

It is important to note here that not all debts can be discharged through Chapter 7 bankruptcy. These may include spousal or child support, student loans, certain tax claims, government fines, and personal injury payments related to drunk driving, among others. You will still be required to make payments on these debts even after the bankruptcy process is complete and your other debts have been discharged. Your lawyer will prepare you for what exceptions may apply in your case.

What Costs Are Associated With Filing for Bankruptcy?

The legal fees in bankruptcy can vary, and your attorney will discuss them with you during your initial consultation.

Bankruptcy attorneys must collect the legal fees up front to avoid them being discharged during bankruptcy. However, Symmes Law Group offers convenient payment plans and stops all calls from creditors. Additionally, the bankruptcy court charges a filing fee of $338. Your attorneys will also obtain a credit report from a company that provides the report for a fee.

Moving Past Common Fears Associated With Filing for Chapter 7 Bankruptcy

While Chapter 7 bankruptcy can be incredibly helpful for individuals overwhelmed by debt, there is a lot of apprehension and stigma still associated with the process in many people’s minds. These fears may even prevent individuals from reaching out, even though bankruptcy may be the key to helping them move forward. Symmes Law Group understands that clients often have mixed emotions when they come to us, and we answer their questions and debunk common myths so they can get the relief they need.

Fear #1: I Will Lose Everything

One of the biggest fears clients often have is that they will lose everything during bankruptcy. However, the truth is that individuals are allowed certain exemptions that allow them to protect some of their property. They can take advantage of either federal exemptions or those provided under Washington Law, but not both. This means that in most cases, clients may be able to keep their vehicle and home if there is no excess equity above state or federal exemption laws.

Fear #2: My Credit Score Will Be Ruined

Another common fear clients have is the impact on their credit score. Many are afraid that bankruptcy will ruin their credit, and it will take forever to rebuild it. However, for some clients, their credit actually improves when filing for bankruptcy. This is because they can eliminate all of their unsecured debt and make payments on their remaining debts. While bankruptcy will stay on a credit report for a period of time, good financial habits can help rebuild credit fairly quickly. 

Fear #3: The Stigma Attached to Bankruptcy

Many individuals are still afraid of how they will be perceived socially if they file for Chapter 7 bankruptcy. While some clients may feel ashamed of their financial situation, bankruptcy can actually improve their finances and quality of life by relieving the daily stress they feel. Even in this area, your lawyer can provide support on how to handle these situations. 

Contact Our Chapter 7 Bankruptcy Lawyers in Seattle, WA

Symmes Law Group provides you with the experienced guidance you need to navigate the complexities of Chapter 7 bankruptcy. We understand that bankruptcy is intimidating, and we are here to support and advocate for you so you have favorable results and begin to rebuild your life. For a free consultation with an experienced Seattle bankruptcy attorney near you, contact our law office today.