If you find yourself struggling with debt, bankruptcy can be a powerful tool you can use against it. A structured repayment plan allows you to reorganize your finances and keep your more valuable assets while you make manageable payments over time.
If you are curious about the process or want to see if you qualify, don’t hesitate to reach out to an experienced bankruptcy attorney in Vancouver who can help guide you through all your available debt relief options.
A Look at Chapter 13 BankruptcyIt is also known as the wage earner’s plan. If you have regular income, you can come up with a repayment plan to pay all or part of your debt over three to five years. Unlike Chapter 7 bankruptcy, which involves the liquidation of assets, Chapter 13 allows you to keep your property while you catch up on missed payments.
Chapter 13 Eligibility RequirementsTo qualify for Chapter 13 bankruptcy in Vancouver, Washington, you must meet the following requirements:
The base of this type of bankruptcy is the repayment plan, which outlines how you plan to repay your creditors over three to five years. Your payments will be based on your disposable income and also categorized as follows:
A Vancouver bankruptcy attorney can help you come up with a repayment plan that aligns with state and federal laws and ensures compliance with 11 U.S.C. § 1325.
Key Benefits of Chapter 13 BankruptcyHere are some of the many advantages you can find when filing for Chapter 13 bankruptcy:
Clark County residents can take advantage of these benefits to regain financial stability while still keeping essential assets.
Washington State Laws and StatutesIn addition to the federal bankruptcy laws, Washington has specific statutes that can impact your Chapter 13 filing:
We all know that life circumstances can change without any warning. If you are in the midst of your repayment period and a financial hardship, like a job loss, medical emergency, or reduced income, creeps up, then modifications to your Chapter 13 plan may be possible. Some of your options include:
Your Vancouver bankruptcy attorney can help you file a modification request with the court and ensure your new plan meets all legal requirements.
Frequently Asked QuestionsA Chapter 13 bankruptcy will stay on your credit report for seven years. However, your credit score will gradually increase as your debts are repaid and your financial stability improves.
If you miss a payment, it may result in the dismissal of your case. However, if you are experiencing financial hardship, your Vancouver attorney may be able to request a plan modification to accommodate income changes.
Yes. You will attend a 341 Meeting of Creditors, where you will answer questions asked by the bankruptcy trustee assigned to your case. A confirmation hearing may also be required to approve the repayment plan.
Generally, in Clark County, you will need to obtain court approval before you can take on any new debt during a Chapter 13 repayment plan.
Yes. If you find that your circumstances have changed and you can no longer afford your Chapter 13 repayments, you might qualify to convert your case into a Chapter 7 instead.
There are some steps you can take to proactively start rebuilding your credit in Vancouver. Make all your payments on time, obtain a secured credit card and use it responsibly, monitor your credit report for errors, and establish a budget and savings plan to prevent future financial difficulties.
Understanding the ins and outs of bankruptcy can be complicated due to all the complex laws and steps. For this reason, professional guidance is a plus.
A Vancouver bankruptcy attorney can help assess your eligibility and recommend the right debt relief strategies for your situation. They can also assist you in drafting and filing all the required paperwork, represent you in court proceedings, and ensure compliance with Washington State laws and federal bankruptcy codes.
Hiring an experienced attorney like those you will find in our Vancouver office can make a big difference in the outcome of your bankruptcy case.