Q – Am I eligible to file Chapter 7 bankruptcy in Spokane?

You may file bankruptcy in Spokane, or any other Bankruptcy Court in the Eastern District of Washington, if you have resided within the district for the greater part of the last 180 days.

Q – What if I am above the median income?

If your debts, including your home loan, are primarily consumer debts, you will need to pass the “means test” to be eligible to file a Chapter 7 bankruptcy.

You will be eligible, with limited exceptions, if your monthly average income over the six months before filing is less than the median state income for your size household. Social security benefits do not count as income for this calculation.

If your income is above the median, your eligibility will be determined through a review of your monthly net disposable income. This review is based on federal guidelines for food, clothing, housing, utilities, medical care and other expenses based on your geographic location.

In most consumer cases, the means test is a hurdle, not a roadblock, to a Chapter 7 bankruptcy filing.

Q – What if I am not eligible to file Chapter 7 bankruptcy?

You’ll usually still be eligible for relief through a Chapter 13 bankruptcy filing if you have a regular source of income, and you’re willing to apply your disposable income to make payments under a plan for three to five years.

Q – Should I file bankruptcy?

Most often, a decision to file bankruptcy is made after sleepless nights, when financial stress has reached a breaking point, and relief is needed to restore peace of mind, obtain a fresh start and move forward without overwhelming debt.  Bankruptcy is often needed when:

• total debt is more than could be paid within a reasonable time
•  bill collectors are harassing individuals for payment
• bills are running more than thirty days past due
• there are high medical bills that are not covered by insurance
• wages are being garnished
• property has been repossessed; or
• foreclosure is pending.

Q – Will I keep my house?

The answer to this question solely depends on your specific situation. Typically you can keep your home. In a Chapter 13 bankruptcy filing, your missed mortgage payments can be rolled into your repayment plan.

In most Chapter 7 bankruptcy filings, your home is protected through the homestead exemption. There may be a question if keeping your home is worth it. If your mortgage payment is a burden, we may advise a different solution for financial freedom.

Q – Will I keep my car?

In a Chapter 7 bankruptcy, your car may be considered an asset for liquidation, but it may be an exempt item depending on the vehicle’s value.

In a Chapter 13 bankruptcy, you are allowed to repay past due amounts over the life of the repayment plan. Request a free debt evaluation so we can help you determine which route is best for you and to determine which options are best for you.

Q – How does filing for bankruptcy affect my credit?

Many individuals that are considering a bankruptcy filing already have poor credit as the result of excessive debt and late payments. Filing bankruptcy in Spokane will not erase a negative credit history.

Chapter 7 bankruptcy filings are reported for 10 years, and Chapter 13 bankruptcy filings are reported for 7 years. After your debts are discharged, your credit score will improve over time with the elimination of debt, and the establishment of new credit. We will help you create a manageable budget and financial plan to rebuild your finances successfully.

Q -Will I ever be able to get credit after filing for bankruptcy?

Yes, but be mindful of your interest rates. FHA and VA home loans should be attainable within 1-5 years of filing for bankruptcy. Car loans can be obtained usually immediately after filing for bankruptcy, although you may not receive a reasonable interest rate.

We can help you create a financial plan to help rebuild your credit so you can qualify for better loan options in the future.

Q -How long does filing for bankruptcy take?

How long the bankruptcy filing process takes depends on the type of filing you choose. With a Chapter 7 bankruptcy, the process can take as little as four months.

Chapter 13 bankruptcy is a longer process, but often more favorable to debtors. Request a free debt evaluation to determine which filing is right for you and for more detailed information specific to your situation.

Q- Do I really need a bankruptcy lawyer?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was passed to prevent bankruptcy fraud and to protect honest debtors.

This law requires debtors to obtain credit counseling before filing, and that those seeking debt relief receive budget management and debt counseling before debts can be dissolved.

Although you are not required to retain an attorney, the language of the law and the required bankruptcy forms can be daunting.

Our attorneys can help make sure you are fully protected, that you are able to retain as many of your assets as possible, and that your debts are successfully managed.