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Chapter 13 in Bellevue
Did you know you don't always have to lose your assets in bankruptcy? If you qualify for Chapter 13, you will work out a manageable payment plan instead of selling your assets to cover your debt. Once the payment plan term concludes, the Western Washington Bankruptcy Courts will dismiss any remaining debt. However, you must have a regular income to qualify.
Chapter 13 offers the benefits of bankruptcy while mitigating some of the financial damages. It's ideal for people looking to keep their Bellevue home, vehicle, and other valuable assets. Call our attorneys specializing in Chapter 13 bankruptcy, and we'll review your financial circumstances for free. We'll help you determine if Chapter 13 or another debt relief option like Chapter 7 or a Debt Management Plan is right for your financial health and future.
What Is Chapter 13 Bankruptcy?Chapter 13 bankruptcy is a legal, financial tool that reorganizes your debt into a manageable payment plan over three to five years. Unlike Chapter 7, it doesn't require you to give up your assets. Instead, you make monthly payments based on your income, living expenses, and the amount of debt you owe. According to the United States Bankruptcy Court, your repayment plan's term depends on your income:
"If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." (1) If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years."
When you successfully complete your repayment plan term, the Washington State bankruptcy judge will dismiss most of your remaining eligible debts.
Who Qualifies For Chapter 13 Bankruptcy In Washington State?Washington State residents must meet specific federal guidelines under 11 U.S. Code § 109(e) to qualify for Chapter 13, including:
- Have a regular income to support a monthly repayment plan
- Owe less than $465,275 for unsecured debt and $1,395,875 for secured debt (federal debt thresholds)
- Be current on tax filings. You must provide recent federal tax returns to the courts.
- Complete a credit counseling course from a U.S. Trustee-approved provider within 180 days before filing.
Chapter 13 is often a good choice if you're behind on mortgage payments or trying to avoid repossession, as it gives you time and structure to catch up. If you're unsure whether you qualify, our Bellevue-based bankruptcy attorneys can confirm eligibility based on your financial picture.
How Does An Attorney Help Me File For Chapter 13 Bankruptcy In King County?Chapter 13 bankruptcy is a complex legal and financial process that requires careful planning, accuracy, and court approval. Our Bellevue bankruptcy attorneys develop a realistic plan that complies with the law and protects your rights. Here's how we can help you during Chapter 13:
- Determine eligibility under 11 U.S. Code § 109(e)
- Prepare and file all required forms with the Western District of Washington bankruptcy court
- Draft a court-approved repayment plan based on your budget and legal requirements
- Protect your property using exemptions like the Washington State Homestead Exemption (RCW 6.13)
- Stop collections and garnishments through the automatic stay
- Represent you at the 341 meeting of creditors and other court hearings
- Help you stay compliant throughout the 3–5 year plan
- Provide guidance if financial changes happen during your repayment period
Our local attorneys live and work in Bellevue, serving clients across King County every day. We help neighbors from Factoria and Newport Hills to Lake Hills, Bridle Trails, and Wilburton. Because we’re close to local landmarks like Bellevue Square, Downtown Park, and the Bellevue Botanical Garden, we also regularly assist clients near Crossroads Mall, Eastgate, and Meydenbauer Bay. With knowledge of local courts, trustees, and systems that impact your case, you can count on us to help you rebuild financially with dignity and local support.
Chapter 13 FAQs Answered By Our Bellevue, WA Bankruptcy AttorneysA: Not necessarily. Many debts are only partially paid and then discharged at the end of your plan, as allowed under 11 U.S.C. § 1328(a). What you pay depends on your income and any nonexempt assets, based on the means test and Washington State's exemption laws under RCW 6.15.010.
A: Yes. You can include certain priority debts like recent income taxes and back child support. However, those must be paid in full through the plan as stated in 11 U.S.C. § 507(a) and § 1322(a)(2), as these types of debts are not dischargeable.
A: No. Under 11 U.S.C. § 362(a), the court issues an automatic stay, stopping all collection activity, including lawsuits and garnishments, as soon as you file the petition with the Bankruptcy Court for the Western District of Washington.
A: Yes. Filing triggers the automatic stay under 11 U.S.C. § 362, which immediately halts foreclosure proceedings, including trustee sales under Washington State's Deed of Trust Act (RCW 61.24). Your repayment plan can include past-due mortgage payments and help you catch up over time, as permitted under 11 U.S.C. § 1322(b)(5).
A: Missing a payment can lead to a motion to dismiss your case under 11 U.S.C. § 1307(c). If that happens, we can usually file a motion to modify the plan under 11 U.S.C. § 1329, but you must stay in touch with your attorney through the repayment terms if your income changes so we can act fast.
Schedule Your Free Chapter 13 Consultation At Our Bellevue Law Offices
Our experienced Bellevue bankruptcy attorneys will help you create a personalized repayment plan so you can protect your home, car, and other important assets. You don't have to lose everything to get a fresh start. Call us now to get started!
A Chapter 13 is a bankruptcy that involves a three to five year repayment plan. Some debtors have to file a Chapter 13 because their household income is high enough to pay at least some percentage of all their debt. Some people choose to file a Chapter 13 because of the options it offers. You can get caught up on mortgage payments, consolidate car payments, take care of back taxes, pay back child support, reinstate drivers licenses that have been suspended for fines and protect property in a Chapter 13. If you have filed a Chapter 7 in the past four years, you have to file a Chapter 13 to get a discharge.
In a Chapter 13, a trustee is appointed to receive the payments and disburse the money among creditors according to the Chapter 13 plan. The amount of the payments is determined by subtracting a budget from the debtors monthly income. A means test is used to determine this payment. A projected budget is also used to show what the payment should be going forward. Because the means test only measures the last six months of income, sometimes it doesn’t tell the whole story. First expenses for secured debt are deducted – these debts include mortgage payments and any amount you might be behind and car payments. Debts like back taxes and child support are deducted next. The last debt to be paid is called general unsecured debt, which may end up being paid only pennies on the dollar – often 0% in fact. Even if the payment to unsecured creditors ends up being 100%, a Chapter 13 will stop interest and late charges. A Chapter 13 is much easier than dealing with wage garnishments. It provides and orderly way of paying debt back all at once. Unlike non-bankruptcy credit consolidation plans, it can include all kinds of debt and is more secured because it is all done under the protection of the bankruptcy court. If a creditor does not file claim in the case, they can not collect after the case is finished. Creditors have to go along with the Chapter 13 case.
The only hearing a Chapter 13 debtor will probably have to attend is called a meeting of creditors. Creditors rarely show up to these hearings. At the meeting of creditors, the debtor and his or her attorney appear at the hearing where the trustee goes over the bankruptcy paperwork, pay stubs, bank statements and tax returns. The trustee examines the plan to make sure it will complete within five years and it complies with all the bankruptcy laws. A bankruptcy judge must approve the plan. The trustee or any creditor can object to the plan. Any objections are usually handled out of court but they may involve a hearing before a bankruptcy judge. The debtors attorney will argue the objections before the judge and the debtor usually does not have to attend. Once the plan is approved, or “confirmed” they just have to keep making the payments and will eventually get a discharge for any debt that is not paid. However, this debt must be dischargeable. In some cases, debt such as student loans or fines remains after the Chapter 13 ends. At the end of the case, the debtor receives the title for any car paid off. If the mortgage was in arrears before the case was filed, those payments are caught up and the debtor just keeps making the payments. Sometimes a Chapter 13 debtor can totally remove a second mortgage from the title of their house if they balance of the first mortgage was higher than the houses value when the case was filed. Because there are so many complicated steps to confirm and complete a Chapter 13, most people who try it by themselves fail. Trustees and the courts strongly advise that Chapter 13 use an attorney for their case.