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With the cost of living rising across King County and inflation stretching household budgets, more people are turning to bankruptcy for financial relief. Last year, 1,159 Chapter 7 cases and 373 Chapter 13 cases were filed in King County, reflecting a growing number of residents seeking legal debt relief. Nationally, bankruptcy filings have already increased by 3% since last year, showing that many hardworking people are facing the same financial challenges as you. If you're considering bankruptcy, you're not alone. You just need trusted legal support.
The first step is knowing whether you qualify. We've spent 30 years helping Washington State residents protect their financial future through bankruptcy. We can help you determine whether you qualify and whether Chapter 7 or Chapter 13 is the right fit for your situation. Our office is in King County, and we serve clients throughout Downtown Renton, Highlands, Benson Hill, and Fairwood.
What Do I Need To Qualify For Chapter 7 In Renton?Filing for Chapter 7 bankruptcy eliminates unsecured debt, but you must meet strict requirements under 11 U.S.C. § 707(b). To qualify, you must:
- Pass The Means Test: Your income must be below the Washington State median for your household size.
- Show Financial Hardship: If your income exceeds the limit, you may still qualify if your disposable income is too low to repay debts.
- Have Mostly Unsecured Debts: Chapter 7 is best for credit card debt, medical bills, and personal loans, not secured debts like mortgages or car loans.
- Have No Recent Filings: You cannot file for Chapter 7 if you received a discharge in the last eight years under 11 U.S.C. § 727(a)(8).
If you do not qualify for Chapter 7 in Washington State, you should consider Chapter 13 bankruptcy.
How Do I Qualify For Chapter 13 In Renton?Chapter 13 involves reorganizing debt into a structured repayment plan (11 U.S.C. § 1322). To qualify, you must:
- Have A Steady Income: You need regular earnings to make your monthly repayments.
- Meet The Debt Limits: Your unsecured debt must be under $526,700, and your secured debt must be under $1,580,125 per 11 U.S.C. § 109(e).
- Be Up-To-Date On Tax Filings: The King County court requires proof of federal and state tax filings.
- Have No Recent Filings: You can't file for Chapter 13 if you received a discharge in the last two years under 11 U.S.C. § 1328(f).
If you're unsure about your eligibility for Chapter 13, let's talk. Call today for a free consultation.
FAQs About Qualifying For Bankruptcy In King CountyQ: What are the income limits for Chapter 7 bankruptcy in King County?
A: Chapter 7 bankruptcy uses the Washington State Means Test under 11 U.S.C. § 707(b)(2) to determine eligibility. If your income is below the median for a household of your size in Washington State, you automatically qualify. If your income is higher, you may still qualify by passing the means test, which factors in allowable expenses under RCW 6.27.020 and federal bankruptcy exemptions.
Q: Can I file for bankruptcy if I recently moved to Renton?
A: Yes, but your residency affects which state exemptions apply. 28 U.S.C. § 1408 requires you to have lived in Washington State for at least 91 days before filing here. However, Washington State's bankruptcy exemptions under RCW 6.15 only apply to residents who have lived here for at least two years. Otherwise, the exemptions from your previous state of residence may apply instead.
Q: What happens if I don't qualify for bankruptcy in King County?
A: If you do not qualify for Chapter 7, you can explore Chapter 13 bankruptcy. However, if bankruptcy still isn't an option, you can consider debt settlement or creditor negotiations. Our attorneys can review your finances to find the right path forward.
Q: Will all my outstanding debts be discharged in bankruptcy?
A: No, some debts are non-dischargeable under 11 U.S.C. § 523. Most student loans, recent taxes, child support, and criminal fines are not dischargeable. However, credit card debt, medical bills, and personal loans are generally dischargeable. We'll analyze your debts to determine what qualifies.
Q: How does filing for bankruptcy affect my Renton home?
A: If you own a home, Washington State's homestead exemption under RCW 6.13.030 allows you to protect up to $125,000 of your home's equity in bankruptcy. In Chapter 7, the trustee could sell your home to repay creditors if your Renton home's equity exceeds the Washington State exemption. On the other hand, Chapter 13 lets you keep your home by catching up on missed payments through a bankruptcy court-approved repayment plan.
Q: Can I keep my car if I file for bankruptcy in Washington?
A: It depends on its value and the applicable exemptions. Washington allows a motor vehicle exemption under RCW 6.15.010(1)(d). If your car is financed, you can keep it by reaffirming the loan under 11 U.S.C. § 524(c) or paying its fair market value in a Chapter 13 plan.
Q: How long will a Washington State bankruptcy stay on my credit report?
A: A Chapter 7 bankruptcy remains on your credit report for 10 years under 15 U.S.C. § 1681c, the Fair Credit Reporting Act, while Chapter 13 remains for seven years. However, many filers see credit improvement within 1-2 years by responsibly managing new credit.
Q: How much does it cost to file for bankruptcy in King County?
A: The court filing fees are $338 for Chapter 7 and $313 for Chapter 13, per the Western District of Washington bankruptcy court. Attorney fees vary based on case complexity, but we offer payment plans to make legal representation more accessible.
Consult Our Experienced Renton Bankruptcy Attorneys Now
Whether you're behind on medical bills from Valley Medical Center, drowning in credit card debt after emergency expenses, or facing repossession on a car loan from a dealership along Grady Way, bankruptcy might be the right solution. Call our law office in King County now, and our Renton attorneys will help you determine whether or not you qualify.
