Wondering if you can qualify for bankruptcy protection?

Chapter 7 and 13 bankruptcy help in Snohomish County.

Anyone living in Snohomish County can file a Chapter 7 bankruptcy and get a discharge every 8 years. If you have filed a Chapter 7 in the last four years, you can still file a Chapter 13, but you will not get a discharge. You will be protected from creditors for the term of the plan, though. Any individual or business in the United States can file bankruptcy. You do not have to be a citizen or even have permanent residency status. The question is whether you are filing the best bankruptcy for you. With the help from our Everett Chapter 7 bankruptcy lawyers, you can more easily find out what your options are.

An Everett Chapter 7 bankruptcy attorney can help determine if you qualify.

If you make a higher income than average for your household size, according to the state you live in, you may not be able to stay in Chapter 7. For many people Chapter 7 is desirable because it lasts only about three months, you do not have to make monthly payments and most people do not lose any property. Your case can be dismissed for abuse if the “means test” shows you have the ability to pay some of your debt.

The means test looks back at your last six months of income. If this income is higher than average for your household size, you have to fill out the rest of the means test. Monthly expenses are deducted from your income. Some of these expenses are what you really spend, such as day care, child support, mortgage payments and health insurance. Some are set by IRS regulations, such as rent, transportation, utilities, food and clothes.

If there is any disposable income remaining in the means test, there is a presumption of abuse. You can overcome this presumption of abuse and remain in Chapter 7 if you can argue special circumstances and show how the imperfect means test does not adequately explain your ability to pay debt. If the bankruptcy judge finds that you are abusing the bankruptcy system, your case will be dismissed or converted to Chapter 13.

To stay in a Chapter 13, you have to be able to propose a plan that will pay what it needs to in five years. You have to be able to pay non-dischargeble taxes and back child support within five years for instance. To keep a home that is in danger of foreclosure, you have to be able to catch up on the mortgage payments within five years.

To keep a car, you need to be able to pay for it, though you can usually lower the monthly payments. There are debt limits to a Chapter 13 which change from time to time. If you have over a certain amount in secured or unsecured debt and cannot file a Chapter 7, you must file a Chapter 11, which is usually reserved for businesses and can be complicated and expensive. You have to file your case in the federal court district where you have resided the majority of the last six months or where you have significant property. Bankruptcy is federal law and its orders are automatically good all over the country.

Find out about getting qualified for bankruptcy in Snohomish County with a FREE consultation today.

By contacting an Everett Chapter 7 bankruptcy attorney from our firm, you can more thoroughly understand the bankruptcy qualification process in WA. Get your questions answered, and let us help you make getting a new financial start easy with our flat low fees and affordable payment options!

(425) 249-7156