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Bankruptcy

Bankruptcy is a court-supervised legal process that helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.

In Washington State, as in all states, bankruptcy is governed primarily by federal law, specifically Title 11 of the United States Code, also known as the Bankruptcy Code. Individuals and businesses in Washington may file for bankruptcy under several chapters of this code, the most common being Chapter 7 (liquidation) and Chapter 13 (debt adjustment for individuals with regular income). Chapter 7 allows for the sale of non-exempt assets to pay creditors, while Chapter 13 involves creating a repayment plan to pay off debts over time. Businesses may also file under Chapter 11 to reorganize and continue operations while repaying creditors. Washington State law comes into play primarily in determining property exemptions—that is, what property the debtor is allowed to keep out of the bankruptcy estate. These exemptions are listed in the Revised Code of Washington (RCW) and can include items like a primary residence, personal belongings, and tools of the trade. Debtors in Washington can choose between using the state's exemptions or the federal exemption list, depending on which is more favorable to their situation.

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adversary proceeding assumption of contracts, leases automatic stays

Chapter 11 bankruptcy Chapter 12 bankruptcy Chapter 13 bankruptcy Chapter 13 bankruptcy — confirmation hearing Chapter 13 bankruptcy — disposable income Chapter 13 bankruptcy — eligibility Chapter 13 bankruptcy — repayment plan Chapter 7 bankruptcy Chapter 7 bankruptcy — changing trustee Chapter 7 bankruptcy — conversion to chapter 11, 12, or 13 Chapter 7 bankruptcy — discharge Chapter 7 bankruptcy — eligibility Chapter 7 bankruptcy — means test Chapter 7 bankruptcy — no assets cosignors courts creditor claims — secured, unsecured, priority

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involuntary bankruptcy

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nondischargeable debt nondischargeable debt — alimony nondischargeable debt — child support nondischargeable debt — fraud nondischargeable debt — student loans

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reaffirmation of debt reorganization plan

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Understanding the Different Personal Bankruptcy Chapters

At some point in life, many of us will face financial hardships. When debt becomes overwhelming, one potential avenue of relief is filing for personal bankruptcy.

Understanding Personal Bankruptcy: Types, Eligibility, and Consequences

If you're considering filing for personal bankruptcy, it's crucial to understand the different types available, their implications, and the advantages and drawbacks of each.

Bankruptcy

Individual & Family Legal Plan

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Washington State Code

Washington State Code

Bankruptcy

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