Everett Chapter 7 Bankruptcy Attorneys

Low flat fees and affordable legal help for Snohomish County.

A Chapter 7 bankruptcy is for people with lower incomes who need a relatively quick and easy fresh financial start. The whole process usually only takes about three months. About a month after you file your case, you have one hearing called a meeting of creditors. Creditors rarely appear at this hearing and your attorney will be there to help you. About three months after most cases are filed, you get a discharge and the case is closed.

An Everett Chapter 7 bankruptcy lawyer can help you understand the type of property you can keep.

The law exempts most property from being liquidated to pay creditors. They are generous enough to protect most homes, cars, retirement accounts, household goods – most basic assets needed for an effective fresh start. After you file your case with the help from one of our Everett Chapter 7 bankruptcy attorneys, a trustee is appointed. It is the trustee’s job to look for non-exempt assets that can be sold to pay creditors. The trustee can also undo certain transactions made in the last year or two, such as payments made to relatives or business partners. The reason for this is that it could be unfair if you gave away property or paid a loan back to an “insider” while leaving nothing for other creditors.

Most people who file Chapter 7 do not have any dealings with the trustee other than attending the Meeting of Creditors. However, if the trustee needs more information after this meeting, it is your responsibility to cooperate. If you do not cooperate with the trustee you may lose your right to a discharge.

If your household income is higher than the state average, you have to fill out a means test to show that you are not abusing the bankruptcy system in a Chapter 7. The means test form only looks at your last six months of income. It deducts expenses bases on set monthly amounts determined by IRS tax repayment regulations. It also deducts certain actual expenses, such as mortgage payments, child support, day care and health insurance. After the means test is completed, if there is any disposable income left there is a presumption of abuse. This presumption can be overcome by showing you have special circumstances that are not accurately measured by the means test’s imperfections.

If you are making payments on a car or a house, you can keep this property if you can continue making the payments. The creditor would like you to sign what is known as a “reaffirmation agreement”. This agreement takes the debt outside the bankruptcy. If you do not make the payments, you are personally responsible for the debt.

You should be careful when signing this agreement. A car company can repossess a car if you do not sign the reaffirmation even if you are current on the loan. Some car companies will allow you to retain the car while keeping current on the loan, some will not. If you sign the reaffirmation and the car is repossessed, you could still be responsible for the portion of the car loan not paid by the sale of the car at auctions (the car deficiency).

FREE consultation with our Everett Chapter 7 bankruptcy attorneys – find out about our flat low fees.

With the flat low fees offered by the knowledgeable Everett Chapter 7 bankruptcy attorneys at our firm, we make the possibility of keeping your property and achieving a new financial start easier and affordable. If you want to know more about your options and live in Snohomish County, be sure to contact one of our affordable Everett Chapter 7 bankruptcy lawyers today! We offer flat low fees as well as payment plans that are flexible to fit a tight budget.

(425) 249-7156