Chapter 13

Many find that Chapter 13 bankruptcy is a viable solution for those in Olympia, Washington, who are buried in debt but still earning enough income to make monthly payments.

This bankruptcy type allows you to create a repayment plan to pay off your creditors over a set period, usually 3 to 5 years. It offers an alternative to Chapter 7 bankruptcy, which involves liquidating your assets.

For more information on the different bankruptcy types and to find out if you qualify, consult an experienced Olympia bankruptcy attorney who has the knowledge needed to guide you through the process.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is also known as debt reorganization. It involves creating a repayment plan to repay your creditors over time at a rate you can handle. Unlike Chapter 7, which can discharge your debts, Chapter 13 allows you to keep assets like your home or car while repaying a portion of the debts.

The repayment plan is based on your income, expenses, and the type of debt you owe. Monthly payments under the repayment plan are made to a bankruptcy trustee, who will then distribute the funds to your creditors.

Benefits of Chapter 13 Bankruptcy in Olympia

If you live in Olympia or Thurston County, filing for Chapter 13 has several advantages you should be aware of.

• Avoid Foreclosure: If you are behind on your mortgage payments, Chapter 13 gives you the chance to catch up over time and prevent foreclosure.
• Consolidate Debt: It consolidates many of your debts by rolling them into a manageable monthly payment.
• Stop Creditor Collection Efforts: Once you file, creditors can no longer contact you about your debt. When you file, an automatic stay goes into effect and halts all collection efforts for the duration of your bankruptcy case.
• Lower Monthly Payments: You may be able to reduce your monthly payments, making it easier for you to better manage your finances.
• Discharge Debt: While not all debts are dischargeable under Chapter 13, unsecured debts like credit cards can be reduced or eliminated after you complete your repayment plan.

How Does Chapter 13 Work in Olympia?

The process for Chapter 13 bankruptcy in Olympia is pretty straightforward, but it requires careful planning and legal knowledge. Here’s a general breakdown of what you can expect.

• File a Petition: You start by filing a bankruptcy petition with the court. You will also need to file various financial documents, including a list of your creditors, assets, income, and living expenses.
• Automatic Stay: Next, the automatic stay (11 U.S. Code § 362) goes into effect. Creditors have to stop all collection efforts, including foreclosure, repossession, and wage garnishments.
• Create a Repayment Plan: You must then propose a repayment plan that details how you will repay your debts over a three- to five-year period. The court and creditors must then approve the plan.
• Repayment: After your plan is approved, you will start making monthly payments to the trustee, who then distributes the money to your creditors.
• Completion and Discharge: Once you have completed your repayment plan, any of your remaining eligible debts are discharged.

Washington State Laws and Statutes on Chapter 13 Bankruptcy

In Olympia and throughout Washington, you should familiarize yourself with specific state laws regarding bankruptcy proceedings.

• RCW 19.52.020: Washington’s usury law limits the amount of interest creditors can charge, which is important if you have high-interest debt.
• RCW 19.16.250: This statute addresses consumer protection from unfair debt collection practices, which is relevant if creditors violate the automatic stay.
• 11 U.S.C. 1307: This section of the Bankruptcy Code explains the conditions under which your Chapter 13 bankruptcy can be dismissed or, in some cases, converted to Chapter 7.

Your bankruptcy attorney in Olympia is familiar with these laws and can ensure your rights are protected and your bankruptcy goes as smoothly as possible.

FAQs About Chapter 13 Bankruptcy in Olympia
Why Chapter 13 Bankruptcy in Olympia Might Be Right for You

Chapter 13 can give you the chance to regain control over your financial situation, prevent foreclosure, and reorganize your debt. However, it can be a complex process to navigate, especially if you try to do it on your own.

That’s why it’s important to work with a skilled bankruptcy attorney in Olympia who can help you understand your options, protect your assets, and guide you through the entire process.

Whether you’re facing foreclosure, struggling with high-interest debts, or need to create a manageable payment plan, Chapter 13 might very well be the solution you have been looking for. Contact a bankruptcy attorney in Olympia to discuss your options today.

Get Back on Your Feet Financially With Help From Our Olympia Chapter 13 Bankruptcy Lawyers

If you've fallen so far behind on bills that there's no way you'll ever get caught up, it's time to explore your financial options. At this point, you're likely getting calls from collection agencies and creditors, who may even attempt to contact your employer or family members. While many people equate bankruptcy to financial failure, it is quite possibly the best way to eliminate unmanageable debt and get a fresh financial start. Chapter 13 bankruptcy is one such option, but is it the right choice for you?

First, we have to determine whether you would benefit from filing for Chapter 13 or Chapter 7 bankruptcy. Chapter 13 is often the best alternative if you earn ore than the median Washington income or own property you would prefer to keep, like a house. You can contact one of our Olympia bankruptcy attorneys and find out whether you qualify for Chapter 13. If so, you may be able to eliminate all (or most) of your unsecured debt so that you can get caught up with everything else.

With Chapter 13 bankruptcy, your debt is consolidated into a monthly payment plan with a term of 3 to 5 years. After this period is expired, all of your remaining unsecured debt is discharged. This includes credit card debt and medical bills. Can you imagine what your life would be like without having to worry about unmanageable debt ever again?

Best of all, Chapter 13 may allow you to stop foreclosure on your home while still discharging your unsecured debt. Contact one of our Thurston County bankruptcy attorneys today and find out whether you qualify. Put a stop to the harassing phone calls, eliminate unmanageable debt, and start improving your credit score with help from our team of highly skilled attorneys.

Our Olympia Bankruptcy Lawyers Will Fight to Maximize Your Financial Relief

Chapter 13 bankruptcy is a viable solution for anyone that wants to eliminate debt without losing their home equity, retirement, or personal property. To find out whether you qualify for Chapter 7 or Chapter 13 bankruptcy, one of our lawyers will administer a means test. If you earn more than the Washington median income, then Chapter 13 is your sole option.

When your Olympia bankruptcy lawyer petitions the court on your behalf, all debt collection immediately stops. Bill collectors can no longer contact you in any way. Home foreclosure and repossessions also stop. This affords you time to consider your options. You will also enjoy some peace and quiet in your life when creditors can no longer call you at home or at work.

Chapter 13 Bankruptcy may be the Best Way to Save Your Home From Foreclosure

When you file Chapter 13, you can incorporate mortgage arrears and penalties into your consolidation plan. This is one of the reasons why Chapter 13 bankruptcy is also called the “home saver plan.” This is especially appealing if your home at risk of foreclosure. Even better, your unsecured debt will most likely be wiped out entirely or significantly reduced if you simply maintain your payments for the 3 to 5 year term.

It's common for bill collectors to tell debtors that they will lose everything if they file for bankruptcy, including their retirement, assets, and home. This is far from the truth, but it's a myth they're eager to maintain. In truth, bankruptcy is often the best way to save your home and protect your assets, all while getting a fresh financial start.

Olympia, Washington, Chapter 13, and You

Olympia is one Washington's most beautiful cities. There are a number of parks and nature conservation areas that make the area second to none in the state when it comes to nearby outdoor opportunities. Olympic National Park is a relatively short drive from the city, and it's recognized as one the most unique and biologically diverse parks in the United States. If you would like to learn more about the parks in Olympia, follow this link to the municipal website .

When you get mired in debt, it seems like the only thing you have time to do is work and even then you still can't get ahead. Olympia residents are required to file for bankruptcy in the bankruptcy court of Western Washington, which is located in Tacoma and Seattle. This page details legal services and resources for the bankruptcy court , so you may find it useful. If you have questions, contact one of our Olympia bankruptcy lawyers and get answers.

Is Chapter 13 Bankruptcy Right for You?

Answering this question depends on your current financial situation and how much you earn. If you qualify, you can consolidate your debt and still discharge most, if not all, of your unsecured debt. Most people's consolidation plans last 60 months, but they can run from 3 to 5 years. We used a means test to figure out the duration of your payments.

Contact Our Law Office For a Free Consultation and get the Facts About Chapter 13 Bankruptcy

While this information may seem a bit complicated, Chapter 13 bankruptcy is relatively straightforward. Talk to one of our lawyers today, get the facts, and then decide if this option is right for you. If so you can stop the harassing phone calls and get back on your feet financially.

A Chapter 13 bankruptcy is a debt consolidation plan administered through the bankruptcy court. It is much more powerful than typical debt consolidation plans conducted outside the bankruptcy law. It results in a discharge, which is a federal court injunction prohibiting creditors from every trying to collect a debt again. More debt can be consolidated in a Chapter 13 than in typical debt consolidation plans. For instance, you can consolidate car loans, back taxes, back child support, mortgage arrears and student loans in a Chapter 13. Basically all debt has to be dealt with in the plans. Creditors have to agree to be part of the plan. If they get notice of the Chapter 13 case and do not file a claim with the court, they will lose their right to collect the debt forever (unless it is a kind of debt that can not be discharged).

The Chapter 13 process starts with filing documents showing debts, property, income, expenses and other financial details with the bankruptcy court. A debtor also submits a repayment plan. Debt collection must stop once the case is filed. A trustee is appointed to take monthly payments and disburse the money to creditors.

The debtor attends a meeting of creditors a month after filing the case. Creditors rarely attend this hearing. The trustee swears the debtor in and asks questions about the documents, looks over bank statements, pay stubs and tax returns and makes sure everything is accurate and that the plan follows the law. At this point the trustee can demand changes to the plan. Creditors can also demand changes. The trustee and creditors demand changes by filing objections to the plan with the court. A bankruptcy judge must eventually decide whether the debtor has to submit to these demands. Usually these matters are worked outside of court, with a debtor’s attorney advocating for the debtors point of view, but sometimes an agreement can not be reached and it is resolved at a hearing before a bankruptcy judge. Usually a debtor does not have to attend these hearings and the attorney will appear and argue on their behalf.

To be confirmed, a plan has to reflect the best efforts of a debtor to pay back as much debt as they can. The plan can not abuse the bankruptcy process. As with a Chapter 7, a debtor filing Chapter 13 must submit a means test that shows how much they can afford to pay every month. The means test is based on the last six months income and certain tightly defined expenses allows by law. If this means is not fair, a debtor can claim special circumstances. It can be confusing basing a plan on the last six months and it is hard to know what someones income will look like for the next five years. A bankruptcy attorney helps a debtor do their best and guide the case to confirmation, always trying to get the best deal possible for the debtor.

If someone is behind on a mortgage, the plan has to catch up on the payments within five years. Some debt, such as back child support or some back taxes, must be paid within five years for the plan to be “feasible”. Unfeasible plans cannot be confirmed. There is much more to think about in a Chapter 13 than a Chapter 7, but once the case is confirmed, a debtor knows what the next three to five years will look like and will most likely complete the plan as long as they make the payments. It is extremely rare for bankruptcy judges to confirm plans for debtors who are not represented by an attorney.