Washington state bankruptcy exemptions: 3 things to remember On behalf of Law Office of Ruth Nelson posted in Bankruptcy Exemptions on Friday, April 6, If you're filing for Chapter 7 bankruptcy, you may already know that a lot of your personal property will be exempt from karacto.xyz://karacto.xyz 2 days ago · When filing bankruptcy in Washington you have the choice between taking either the state or federal exemptions, although when it comes to protection for your vehicle they are very close - under Washington State exemptions, you can protect up to $3, in one motor vehicle. Spouses filing jointly can each protect a vehicle (RCW § (1)(d karacto.xyz The cost for filing a Chapter 7 bankruptcy is $ This fee may not be waived but you may be able to pay it in installments. The fee of $ for a Chapter 13 bankruptcy cannot be waived. Chapter 13 Requirements If you are filing a Chapter 13 bankruptcy, a proposed repayment plan must also be karacto.xyz
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Please also use our free Chapter 7 Means Test Calculator to see if you qualify for a Chapter 7 bankruptcy discharge debt forgiveness. A Washington Chapter 13 bankruptcy case can help you prevent repossessions. It can also stop foreclosures to keep your cars and home. It can help you catch up back alimony and child support while getting rid of back tax debt. Through a Washington Chapter 13 plan, you might also be able to lower your car payments and get rid of unsecured debts for pennies on the dollar.
A Chapter 13 plan generally takes five years to complete. However, some debtors may qualify for a three-year Chapter 13 plan.
Many factors comprise the calculation of a Chapter 13 plan, including your income, debts, expenses, and assets. If you have property that is not covered by exemptions, you can also protect assets in Chapter 13 from a bankruptcy auction. Do you want more information about filing Chapter 13 bankruptcy in Washington? If so, check out our Guide to Chapter 13 Bankruptcy. You can also try our free Chapter 13 calculator to estimate what your payments might be if you file Chapter 13 in Washington.
The Means Test is a bankruptcy form the government requires in both Chapter 7 and Chapter 13 cases. The form calculates your annual median income by using your income during the prior six months to calculate an average monthly income. Your annual median income is compared to the annual median income in Washington.
The Means Test has a second section that calculates your disposable income. Disposable income is the amount of money you have each month after deducting your living expenses. If your disposable income is low enough, you might still qualify for a bankruptcy discharge under Chapter 7. Please note that the amount of the annual median income also changes periodically.
Currently, the Washington Means Test figures for cases filed on or after April 1, are:. Remember, these figures are adjusted. Always check for the most recent figures or use our Bankruptcy Means Test calculator.
Bankruptcy exemptions allow debtors to keep certain property when filing for bankruptcy relief. The exemptions prevent people from using the net equity in certain property to repay unsecured creditors in Chapter 7.
The Chapter 7 trustee can sell property with non-exempt equity at a bankruptcy auction. In a Chapter 13 case, non-exempt equity can increase the amount of the Chapter 13 plan payment. The federal bankruptcy exemptions are in NCLC has a list of the federal bankruptcy exemptions on its website.
The Bankruptcy Code allows states to enact and use state bankruptcy exemptions. Some states allow debtors to choose between federal and state bankruptcy exemptions. Washington allows debtors to choose between federal and Washington bankruptcy laws. However, you must live in Washington for at least days before filing the bankruptcy petition to claim Washington bankruptcy exemptions. Common Washington bankruptcy exemptions include:. If you have filed Chapter 13, you must begin making your plan payments.
Generally these payments will be withdrawn directly from your wages and you or your attorney should arrange with the court for these payments to be deducted from your wages. Automatic Stay Once you have filed your paperwork with the bankruptcy court, an automatic stay immediately goes into effect. This provision prevents creditors from making direct contact with you or staking a claim on any of your property from the day of filing forward. This will stop any foreclosure proceedings.
Bankruptcy Trustee Upon filing, the court will assume legal control of your debts and any property not covered by your Washington exemptions.
A trustee will be appointed to your case by the court. The job of the trustee is to see that your creditors are paid as much as possible. This person will thoroughly review your paperwork, particularly the assets you have in your possession and the exemptions you wish to claim, and can challenge any element of your case.
Creditors rarely attend a Chapter 7 bankruptcy meeting; one or two creditors may attend a Chapter 13 meeting, especially if there is a question as to the legitimacy of some aspect of the plan. If a compromise can not be reached, a judge will intervene. The meeting of creditors typically lasts about five minutes. You will receive notice of the location of the meeting but you may contact the court to confirm the address and time.
The trustee will sell this property and distribute the proceeds to your creditors. If there are no challenges, you will receive a notice from the court that your dischargeable debts have been discharged within three to six months. Chapter 13 Plan Confirmation If you filed a Chapter 13 plan, you will need to attend a hearing before a bankruptcy judge who will either confirm or deny the repayment plan.
If your plan is confirmed and you make good on it, the balance if any on the dischargeable debts you owe will be eliminated at the end of your term. Approved Washington Debt Education Courses. This site is for informational purposes only. For legal advice please consult a legal professional.