Debt quickly spirals out of control, especially when you're juggling mortgage payments, car loans, and past-due credit cards. If you're behind on payments but have a steady income, Chapter 13 bankruptcy can help you restructure your debt and keep your assets.
Last year, 373 Chapter 13 cases were filed in King County, making it an important financial option for those who don't qualify for Chapter 7 or need to stop a foreclosure. Whether you live near Benson Hill, Highlands, or Kennydale, or you're facing financial struggles after a job loss or a medical emergency at Valley Medical Center, Chapter 13 offers a legal way to regain financial control.
Filing for Chapter 13 means proposing a repayment plan under 11 U.S.C. § 1322 that consolidates your debts into manageable payments over three to five years. It allows you to catch up on mortgage arrears, prevent repossession, and stop creditor lawsuits. Our Renton bankruptcy attorneys have 30 years of experience helping clients keep their homes, cars, and wages protected. Call us today for a free consultation to find out how Chapter 13 can work for you. We serve clients across Fairwood, Talbot Hill, and Downtown Renton, ensuring they get strong legal protection under federal and Washington State law.
How Is Chapter 13 Different From Chapter 7 In Renton?Chapter 13 bankruptcy is a repayment plan, while Chapter 7 is debt liquidation. With Chapter 13, you keep your assets, including your home, and repay a portion of your debt over 3 to 5 years (11 U.S.C. §§ 1301–1330). On the other hand, Chapter 7 wipes out most debts in 4 to 6 months but may require selling non-exempt property (11 U.S.C. §§ 701–784). Chapter 13 is ideal if you have a steady income and need to catch up on mortgage arrears, car loans, or tax debt.
How Do I File For Chapter 13 In Renton?We start by filing a petition with the Western District of Washington Bankruptcy Court in Seattle. You'll submit:
Once filed, a trustee reviews your case, and you attend a 341 meeting of creditors (11 U.S.C. § 341). If the court approves your plan, you'll make monthly payments for 3 to 5 years, after which any remaining eligible debt is discharged (11 U.S.C. § 1328).
If you're struggling with missed mortgage payments in Renton Highlands or repossession threats in Fairwood, Chapter 13 can help. Schedule a free consultation today to get started.
Our Renton Bankruptcy Attorneys Answer Your Chapter 13 FAQsA: Chapter 13 is available to individuals with regular income who have secured debts under $1,580,125 and unsecured debts under $526,000 as outlined in 11 U.S.C. § 109(e). Chapter 13 bankruptcy is ideal if you don't qualify for Chapter 7 or need to catch up on mortgage or car payments while keeping your assets.
A: Your plan will cover secured debts like mortgages and car loans, as well as unsecured debts such as credit cards, medical bills, and personal loans. Certain priority debts, like recent taxes and child support, must be paid in full under 11 U.S.C. § 507.
A: Yes. The automatic stay under 11 U.S.C. § 362 immediately halts foreclosure proceedings. Chapter 13 allows you to catch up on missed mortgage payments over time, preventing foreclosure as long as you stay current on your repayment plan.
A: Yes. The automatic stay immediately stops repossession. If your car has already been repossessed, you may be able to get it back by filing quickly and including past-due payments in your plan, as allowed under 11 U.S.C. § 1322(b)(5).
A: Your payment is based on your income, expenses, and debt amounts. The court requires you to contribute all disposable income toward your plan under 11 U.S.C. § 1325(b). We'll calculate an estimate based on your financial situation and help you create a manageable repayment strategy.
A: Missing a payment can lead to a motion to dismiss from the trustee under 11 U.S.C. § 1307(c). However, you may be able to modify your plan or request a temporary suspension under 11 U.S.C. § 1329. We'll help you navigate any financial setbacks to keep your case on track.
A: Some income tax debts are eligible for repayment under 11 U.S.C. § 507(a)(8). Certain older tax debts may even be discharged after your plan is complete. However, recent taxes and payroll tax debts usually must be paid in full.
A: The court filing fee is $313, set by the U.S. Bankruptcy Court for the Western District of Washington. Attorney fees vary but can often be rolled into your repayment plan under 11 U.S.C. § 330. We offer flexible payment options to ensure you get the legal help you need.
If you're behind on mortgage payments or car loans, Chapter 13 may help you catch up. Under 11 U.S.C. § 1322, you can restructure debts into a manageable repayment plan while keeping your home and vehicle. Chapter 13 also stops foreclosure and repossession, even in high-cost areas like Kennydale. If creditors are pressuring you, bankruptcy might be the way to protect your assets. Call us now, and let's start rebuilding your financial future.