Filing Chapter 13 in Washington State

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If you are considering bankruptcy, learn a little about the benefits of Chapter 13 in Washington state. Washington state debtors often choose this route to pay off most unsecured debts within three to five years. If you want a chance at a fresh financial start, but still wish to pay back your obligations, this chapter may be for you. Before you file for Chapter 13, Washington state bankruptcy lawyers should be considered for help.

Reasons to file Chapter 13 in Washington State

If you are wondering why you should pay back your debts instead of having them written off altogether as in Chapter 7, one of the reasons is that not every debt can be discharged in bankruptcy. For example, student loans, taxes and court fines cannot be included in Chapter 7 bankruptcy unless you can prove you are unable to work, such as due to a disability. While you cannot get rid of these debts, you can include them in a Chapter 13 bankruptcy since this will allow you to pay them off slowly within three to five years. Your only other options would be to ignore them and deal with the consequences, such as late fees and lawsuits, or pay them off in full immediately. For this reason, Chapter 13 often looks attractive to Washington state residents with these debts.

Keep Major Assets

Another advantage of Chapter 13 is the ability to keep your home and car. In a Chapter 7 bankruptcy, you may not be able to keep such assets, but you typically can with Chapter 13. Washington state homeowners may choose this chapter to stop foreclosure while restructuring their debts. Declaring bankruptcy can give you some time to catch up with your mortgage payment since the automatic stay stops creditors from calling you or proceeding with a foreclosure. Once the automatic stay is lifted, you may have enough money to become current on the mortgage, allowing you to keep the home. In some cases, you may even negotiate a reduced payment or loan, depending on your circumstances and your attorney.

Contact a Lawyer

If you are considering Chapter 13, Washington state lawyers can help. You will need legal help to figure out the best payment plan for you. Remember that the monthly amount you pay has to be a number you can afford, so be prepared to offer details about your income and expenses. It is helpful to have a lawyer on your side to ensure the deal is beneficial to you.