Chapter 7 Bankruptcy

Do you find yourself buried in overwhelming debt and can’t find a way out of it? If so, you’re not alone. Many other Vancouver residents are in the same boat as you and are actively looking for relief. To help you navigate what can be a confusing time in your life, consult an experienced Vancouver bankruptcy attorney who can guide you through the process from start to finish.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, gives you a fresh start by discharging most of your unsecured debts. Let’s take a closer look at what this means and how a Vancouver bankruptcy attorney can help guide you through the process and ensure a more favorable outcome.

In this legal process, you can discharge most of your unsecured debt, including credit card balances, medical bills, and personal loans. In exchange, your non-exempt assets can be sold by a bankruptcy trustee to repay your creditors.

However, many people in Vancouver, Washington, have found they can keep their homes, vehicles, and other personal property, thanks to exemptions under Washington State law.

Unfortunately, not everyone is eligible for Chapter 7 bankruptcy in Vancouver. To qualify, you will need to pass the means test, which determines if your income is low enough to file in the first place. The test compares your monthly income to the median income in Washington for a household of your size.

If your income falls below the median, you automatically qualify. However, if it is above, additional calculations are needed to determine your eligibility.

• Income: Monthly income has to be less than Washington State’s median income for your household size.
• Assets: All non-exempt assets are subject to liquidation. Nevertheless, the state has specific exemptions in place to protect your home or car.
• Recent Bankruptcy Filings: If you have filed for bankruptcy in the past, then waiting periods may apply before you can file again.

If you are unsure whether you are eligible, a bankruptcy attorney in Vancouver can provide a more personalized assessment of your situation and review all the available options with you.

You will find many advantages when filing for Chapter 7 bankruptcy in Vancouver.

• Discharge Unsecured Debt: Most of your unsecured debts, including credit card debt, medical bills, and personal loans, are discharged.
• Stop Creditor Harassment: As soon as you file, creditor harassment stops. This includes calls, lawsuits, and letters.
• Quick Process: The typical Chapter 7 bankruptcy case only lasts between three and six months from the filing date to the discharge of your debt. After this time, you can start getting back on track with your finances.

• Credit Counseling: Before you can file, you need to complete a credit counseling session with an approved agency.
• File the Petition: Then you will have to file a bankruptcy petition with the court. It should include a detailed list of your assets, debts, income, and expenses. This is where a Vancouver bankruptcy attorney can prove invaluable to you.
• Trustee Appointment: A bankruptcy trustee will be assigned to your case. They will review your petition, determine which assets can be sold, and ensure that everything is fairly distributed to your creditors.
• 341 Meeting of Creditors: About 30 days after you file, you will need to attend a 341 Meeting, where you will answer questions about your finances. The creditors don’t show up in most cases, and it’s just the bankruptcy trustee.
• Debt Discharge: Once the bankruptcy is done, all eligible debts will be discharged.

Washington offers several exemptions to protect your assets in a Chapter 7 bankruptcy.

You can protect the equity in your home up to $125,000 for an individual or $250,000 for married couples.

Under RCW 6.15.010, clothing, household goods, and vehicles can be exempt up to a certain amount:

• Household Goods: Up to $6,500 per person, with no single item exceeding $750 in value
• Vehicle: Up to $3,250 in equity
• Clothing: No dollar limit, but must be reasonable
• Jewelry: Up to $1,000 in value
• Tools of the Trade: Up to $10,000 if used for your trade or profession
• Bank Account Funds: Up to $500 per person

Washington also provides strong protections in RCW 6.15.020 for retirement savings in bankruptcy cases:

• 401(k), 403(b), and Pension Plans: Fully exempt as long as they are ERISA-qualified
• IRAs: Traditional and Roth IRAs are exempt up to $1,512,350 per person
• Public Pensions: Fully exempt

Because exemptions can be complicated and can change, it’s always best to consult a bankruptcy attorney in Vancouver to make sure your assets are fully protected.

Chapter 7 bankruptcy provides Clark County residents with a means to eliminate their overwhelming debt and achieve a fresh financial start. Having a good understanding of the laws and exemptions, as well as the bankruptcy process, is essential for a favorable outcome.

If you’re considering filing, don’t hesitate to consult one of our knowledgeable bankruptcy attorneys. We can ensure the process goes smoothly and your assets are protected.