Chapter 7 Bankruptcy

Washington State understands that the unexpected happens sometimes and can throw you, even when you are financially responsible. Bankruptcy is a legal process that allows you to get out of debt while protecting your financial future. One type of bankruptcy is Chapter 7 or "liquidation" bankruptcy. Under federal law (11 U.S. Code § 727), Chapter 7 involves selling off certain assets to pay down your debt. The Spokane Bankruptcy Courts then discharge any debts not covered.

In Spokane, the Chapter 7 process takes three to six months and gives you a clean financial slate once complete. If you're facing insurmountable debt, Chapter 7 may be the solution you need. Our Spokane-based attorneys specialize in this bankruptcy type and can help you understand if you qualify. Contact us today for a free consultation, and we'll get started.

Who Qualifies For Chapter 7 Bankruptcy In Spokane County?

You may qualify for Chapter 7 bankruptcy if you meet specific financial criteria established by both federal law and Washington State statutes. You must:

• Earn An Income Below The Median: Your household income must be below the median for a household of your size in Washington State. If your income is above the median, you must pass the means test to determine if you qualify for Chapter 7.
• Pass The Washington State Means Test: If your income exceeds the median, the means test will evaluate your disposable income to determine if you have enough to repay creditors. It looks at your income versus allowable expenses (11 U.S. Code § 707(b)).
• No Recent Bankruptcy Filings: If you've filed for bankruptcy within the last 8 years, you won't qualify for Chapter 7.
• Non-Exempt Assets: Chapter 7 may require you to sell non-exempt assets to pay off creditors. However, Washington State offers exemptions that allow you to keep certain assets (RCW 6.15).
• Resident Of Spokane County: To file in the Eastern District of Washington, you must have lived in Spokane County for at least 91 days of the past 180 days (28 U.S. Code § 1408).

At our Spokane law office, we'll work closely with you to determine if you meet these qualifications.

Which Bankruptcy Chapter Is Right For My Spokane County Debt?

While both Chapters 7 and 13 are for individuals in need of debt relief, each has different qualifications that impact your finances differently. Here are the distinctions you need to know:

Chapter 7 Bankruptcy

• Liquidation: Spokane courts sell non-exempt assets to pay creditors.
• Discharges Unsecured Debt: Eliminates most unsecured debts like credit card debt and medical bills.
• Eligibility: Available to individuals who pass the means test and have limited income.
• Duration: Typically completed in 3-6 months.
• Assets: Spokane courts may sell some assets, though exemptions under Washington State law protect many of them.

Chapter 13 Bankruptcy

• Eligibility: Chapter 13 is for individuals with regular income, even if they exceed Chapter 7 income limits.
• Protection: Allows you to keep your assets, including a home or car, which may be at risk in Chapter 7.
• Debt Limits: Debts must be below $465,275 for unsecured debt and $1,395,875 for secured debt.
• Reorganization: Debtors set up a repayment plan with the courts to repay a portion of their debts.
• Extended Repayment Period: Payments happen over 3 to 5 years, depending on income.

How Do I Know Which Type Of Bankruptcy To File In Washington State?

Choosing the right type of bankruptcy for your financial situation is essential for getting relief. Fortunately, our Spokane-based bankruptcy attorneys have over 30 years of combined experience helping people throughout Washington State understand their bankruptcy options. As locals, we know the unique financial challenges of living in areas like the South Hill, the West Plains, and Downtown Spokane. Whether you're a homeowner in the Valley struggling with mortgage debt, a professional facing overwhelming student loans in Cheney, or dealing with medical bills in the South Perry District, we are here to help.

We know how to file for bankruptcy at the Eastern District of Washington Bankruptcy Court. When you work with our legal team, we handle all the paperwork and negotiate with creditors on your behalf. We'll help you decide if Chapter 7 is the right solution for your needs. Our team has worked with many residents facing the challenges of Spokane's rising cost of living, from those living near Gonzaga University to families in neighborhoods near Riverfront Park.

Our Spokane attorneys are standing by, ready to take your call. Get the answers you need now.

Frequently Asked Questions (FAQs) About Spokane Chapter 7 Bankruptcy
Get Trusted Legal Expertise For Your Chapter 7 Case

Our Spokane-based attorneys have handled hundreds of Chapter 7 cases right here in Washington State. Because we know the local trustees, courts, and exemptions, we make this process easier on you from start to finish. Reach out now to our Spokane legal office today for a free consultation.

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