If you are looking for a fresh financial start because of crippling debt in Olympia, Washington, or elsewhere throughout Thurston County, then Chapter 7 bankruptcy may be the answer you have been looking for. This legal process allows you to discharge most of your unsecured debts (if eligible) while protecting certain essential assets.
Since this can be a complex process, it may be in your best interest to consult a qualified Olympia bankruptcy attorney who can guide you from start to finish.
What Is Chapter 7 Bankruptcy?Chapter 7 bankruptcy, widely known as a liquidation bankruptcy, eliminates most unsecured debts like your credit card balances, medical bills, and personal loans.
In return, your non-exempt asset may be sold off to pay your creditors. Many people in Olympia qualify for Chapter 7 and can retain their essential property.
Washington State Laws Governing Chapter 7 BankruptcyFiling for Chapter 7 bankruptcy in Olympia falls under federal law (11 U.S.C. § 701-784) but also includes some Washington-specific exemptions you want to be aware of.
A bankruptcy attorney in Olympia can help you determine which exemptions apply to your particular situation and ensure you have maximum protection of all your assets.
Who Qualifies for Chapter 7 Bankruptcy?To file for Chapter 7 in Thurston County, you must pass the means test. This compares your income to the Washington State median.
Washington’s Monthly Median Income (as of 2025):It is another $331 per additional household member.
If your income happens to fall below this median, you will likely qualify. If it is above, deductions for expenses might still allow eligibility. A bankruptcy attorney can help you with your means test calculations.
Steps for Filing Chapter 7 Bankruptcy in Olympia1. Gather Financial DocumentsTax returns for the last two years
Pay stubs for the last six months
Debt statements that include credit cards, medical bills, and loans
Asset valuations, including home, vehicles, and investments
2. Complete Credit CounselingMust be completed within 180 days before you file
Must be through an approved agency
3. File Bankruptcy PetitionFile your petition in the US Bankruptcy Court for the Western District of Washington.
The petition should include a detailed account of your financial situation, including assets, liabilities, income, and expenses.
4. The Automatic Stay BeginsAn automatic stay (11 U.S. Code § 362) stops all creditor collection efforts, lawsuits, wage garnishments, and foreclosure actions.
It stays in effect for the duration of your bankruptcy case.
5. Attend the 341 Meeting of CreditorsThe 341 Meeting is typically held at the federal courthouse or via video call.
Your creditors will have the opportunity to ask you questions about your debts and finances while you are under oath.
6. Receive Your DischargeYour debt discharge usually happens within four to six months after filing.
The Impact of Chapter 7 on Your CreditWhen you file for Chapter 7 bankruptcy, it can stay on your credit report for up to 10 years. However, you can still begin building your credit by doing the following:
Many people start seeing an improvement in their score within one to two years following their bankruptcy.
FAQs About Chapter 7 Bankruptcy in OlympiaNot necessarily. If your home falls within Washington’s homestead exemption, you can keep it. If there is a foreclosure on the home, the automatic stay stops this. You just need to stay current on your mortgage payments to keep your home long-term.
You have to wait eight years after a previous Chapter 7 discharge before you can try filing again.
While Chapter 7 can provide relief, you still should consider that you could potentially lose non-exempt assets. There will also be a big hit to your credit, and you can’t discharge some debts like child support, alimony, and taxes. So, you want to review your debts carefully and see if this bankruptcy chapter is right for your situation.
Your tax refund could be at risk if you file for Chapter 7 in Washington. The bankruptcy trustee may consider it a part of your assets, especially if your refund exceeds the allowed exemptions. However, if you are due a smaller refund and it falls within all of the exemption limits, you may be able to keep it.
If you have a co-signer on your debts when filing for Chapter 7 bankruptcy, they may be held liable for the debt. The automatic stay only applies to you, so creditors can still pursue your co-signer for the remaining balance if you discharge the debt.
Chapter 7 is a path to financial relief. However, you want to have a clear understanding of eligibility requirements, state and federal laws, and the filing process. Your Olympia bankruptcy attorney can help you take informed steps toward your debt relief.
So, if you’re considering bankruptcy, consult an experienced attorney who can provide the guidance you need to navigate the process much more successfully than you could on your own.
What is Chapter 7 Bankruptcy, and do I Qualify?When you fall behind on bills, there's a point where there is simply no way to get ahead. When you reach this point, you may want to consider all of your options. Bankruptcy is a legal way to eliminate debt and get a fresh financial start, but some people are apprehensive about filing because they view it as an admission of failure.
Nothing could be further from the truth. In fact, filing for bankruptcy may be the most responsible way to get back on your feel financially, put a stop to harassing phone calls from creditors, and start rebuilding your credit score.
Chapter 7 bankruptcy is especially appealing because it allows you to eliminate all unsecured debt, including medical bills and credit card debt. Would you benefit from filing for Chapter 7 bankruptcy? There is only one way to find out. Contact one of our Olympia bankruptcy lawyers for a free consultation and find out if you qualify for Chapter 7.
Chapter 7 Bankruptcy is Often The Best Way to Eliminate Debt Once and for AllThe majority of people that file for bankruptcy do so because of medical bills. One prolonged illness can leave you with a mountain of bills and no way to pay them off. People who get sick or lose their job sometimes rely on credit cards to see them through these rough patches, but interest rates are so outrageously high that they may soon find there is no chance of ever getting caught up.
Chapter 7 bankruptcy eliminates credit card debt and most other unsecured debt, including medial bills. In as little as four months, you can start rebuilding your credit score without any need to worry about unmanageable debt. When your Olympia bankruptcy attorney petitions the court, all bill collectors and credits must stop trying to contact you. No more phone calls. No more harassment. In fact, all debt collection stops when you file for Chapter 7, including wage garnishment, repossession, lawsuits, and taxes.
Why are Companies You've Never Heard of Trying to Collect Money From You?If you fall behind on a credit card bill for as little as three months, the company may sell the debt to a collection agency. You may suddenly get phone calls or threatening letters from this company, making you wonder exactly who they are. Even worse, they may use all sorts of unscrupulous methods in an attempt to get you to make a payment. They may try to embarrass you by calling your employer, or even attempt to coerce you into cashing out your retirement to pay off the debt.
These companies use two highly effective tools – fear and embarrassment. If you even mention contacting a lawyer to inquire about bankruptcy, they may tell you that your credit will be ruined forever. Do not listen to them. Chapter 7 bankruptcy was developed by the government to help hard-working people get out from under unmanageable debt, allowing them to become active consumers once again.
You have legal rights in regards to finances, so contact one of our Thurston County bankruptcy lawyers today and find out how we can protect them.
Olympia, Washington, Chapter 7 Bankruptcy and YouAs an Olympia resident, you already know the many benefits of living in our community. We are close to the city, close to the mountains, and close to the ocean. Our city has plenty of jobs, numerous business opportunities, and some quality neighborhoods for raising a family. These are just some of the reasons why you settled down in the area. To learn more about Olympia, check out this information on various neighborhoods in the city.
No matter how much you love the place you live, financial difficulties can strike in the blink of an eye. If you file Chapter 7, it will be handled by the Bankruptcy Court in Western Washington. You may find this page on bankruptcy basics useful, as it offers some useful information regarding Chapter 7.
Our Olympia Bankruptcy Attorneys Will Help You Hit the Financial Reset ButtonCountless people fall behind on bills every day in Olympia. Many find it impossible to recover. Everyone knows how outrageously expensive medical care can be, so one prolonged illness may create a hopeless financial situation. Credit card debt can spiral out of control because the interest rates are so ridiculously high. Not to mention the fact that credit card companies often extend lines of credit that are simply too large.
When you file for Chapter 7 bankruptcy, all collections stop. In just four months, your unsecured debt is gone and you can focus on maintaining a healthy financial lifestyle while rebuilding your credit score. If this sounds appealing, it's time to take the next step.
Contact One of Our Olympia Chapter 7 Bankruptcy Lawyers For a Free ConsultationThe number-one mistake people make in regards to bankruptcy is waiting too long to file. Usually this caused by pressure from collection agencies or the threat of repossession or home foreclosure. Contact one of our Olympia bankruptcy lawyers today for a free consultation and find out if Chapter 7 is the right option for you.
Chapter 7 bankruptcy provides debtors with a quick solution to financial disaster and lets them get on the road to recovery within three to four months. Creditors must stop all debt collection the second the case is filed. Most people who file a Chapter 7 only have to attend one hearing, called a meeting of creditors. Chapter 7 debtors must file detailed documents with the bankruptcy court showing their income, expenses, property and debts along with other details of their financial lives such as recent debt payments, gifts, past income, former addresses and ex-spouses, among other things. They must also submit pay stubs, bank statements and tax returns to a trustee before the meeting of creditors.
Though final decisions are made by a bankruptcy judge in all bankruptcy cases, in most cases a debtor will only have to deal with the trustee. The trustee examines the case looking for property that can be turned into cash to divide up fairly for creditors. Bankruptcy law provides exemptions to liquidation so a debtor can keep important property needed to rebuild their lives after getting rid of debt. These exemptions allow most people who file bankruptcy to keep household goods, cars, homes, retirement accounts and other necessities.
After a Chapter 7 debtor files the case and attends the meeting of creditors, the court issues a discharge. The discharge is an injunction that makes it illegal for creditors to every try to collect a debt again. It provides a fresh start by “cancelling” the debt. Some debt can not be discharged. The most common examples of non-discharged debt are student loans, recent back taxes, domestic support obligations such as back child support or spousal maintenance and fines.
Because creditors in Chapter 7 rarely receive any money in the process, people who file Chapter 7 must show they do not have the income to make any payments on the debt. Bankruptcy law requires them to go through a means test. This test looks back six months and takes an average of the debtors income. If this average income is more than the median income for the debtors household size in their state of residence, then they go through another step of subtracting expenses from their income to show nothing is left for monthly payments to creditors. The means test tightly defines what expenses can be deducted. Because this process of looking back six months and tightly defining expenses is imperfect, some debtors who “fail” the means test can still show they are not abusing the bankruptcy system by showing there are special circumstances in their case. Examples of special circumstances would be a sudden drop in income that is unlikely to change or a new baby being born.
If a Chapter 7 debtor is making payments on a car or a house, they can keep this property if they can continue to make the payments. It may be necessary to sign a reaffirmation agreement. Because the reaffirmation agreement takes the debt outside the discharge, signing this agreement is risky and should be carefully considered.