Answers to common questions about filing for bankruptcy in Washington State. Our attorneys are here to help you understand your options.
Free Case EvaluationBankruptcy FAQs address common questions about filing, consequences, and myths. The answers below are general in nature and do not apply universally to all situations -- every person's financial circumstances are unique. For advice tailored to your situation, consult with one of our attorneys.
Every Bankruptcy Is Unique
Do not rely on advice from friends or family members who have been through bankruptcy. Every case is different, and what applied in their situation may not apply in yours. Consult your attorney with specific questions.
Chapter 7: You must wait 8 years after a prior Chapter 7 filing before filing again. Chapter 13: You generally must wait 6 years after a prior Chapter 13 filing, though exceptions exist if your previous case paid 70% of creditor claims.
These deadlines only apply if a discharge was received in the prior case. If your previous case was dismissed, you can generally re-file immediately. You can also file Chapter 7 and then immediately file Chapter 13, though a Chapter 13 discharge will not be available in that scenario.
| Scenario | Duration on Credit Report |
|---|---|
| Discharged bankruptcy | 10 years |
| Dismissed Chapter 13 | 7 years |
| Dismissed Chapter 7 | 10 years |
No. There is no legal requirement for spouses to file together. However, spouses may choose to file jointly if they are both liable on the same debts.
The discharge is personal -- it eliminates your obligation to pay. However, if others are also liable on the same debt, creditors can still collect from them. Secured creditors with liens are not affected by discharge; they may still foreclose on or repossess the collateral.
Bankruptcy can provide the following benefits:
Bankruptcy cannot eliminate:
| Item | Cost |
|---|---|
| Chapter 7 filing fee | $335.00 |
| Chapter 13 filing fee | $310.00 |
| Typical Chapter 7 attorney fees | Approximately $1,000.00 (varies by complexity) |
| Chapter 13 attorney fees | Regulated by court; often paid through plan payments |
Fee waivers are available for qualifying individuals. The court also offers court-approved 4-month payment plans with a minimum of $100 down.
Chapter 7 allows you to keep all "exempt" property under state or federal law exemptions. Filers may choose between state and federal exemptions. However, exemptions do not affect secured creditor rights for mortgaged or collateralized property.
Generally, you will not lose your home or car if the equity is fully exempt. Non-exempt property can be retained in Chapter 13 by paying the non-exempt value to creditors through your plan. However, secured creditors can foreclose or repossess if you fail to maintain payments.
Yes. You can keep your exempt property and anything obtained after filing. However, inheritances, property settlements, or life insurance benefits received within 180 days after filing may be distributed to creditors if not exempt.
Most cases only require the "341 meeting" or "first meeting of creditors" with the trustee. This meeting is typically brief, with the trustee asking questions about your forms and finances. Complications or debt disputes may require additional judicial hearings, but this is uncommon.
There is no definitive answer. If you are already behind on bills, your credit may already be damaged, and bankruptcy likely will not make it worse. A discharge can actually improve your ability to pay current bills and may enable you to access new credit. We recommend checking your credit reports from all three bureaus approximately two months after discharge to verify accuracy.
No. You cannot selectively exclude certain creditors. All debts must be listed and handled through the court. Creditor payments must follow court authority and law, not personal preference. Chapter 13 plans provide an organized way to pay creditors according to legal priorities.
Most student loans are not discharged in bankruptcy. However, exceptions may exist in cases of undue hardship. Consult with our attorneys about your specific student loan situation.
The Bankruptcy Court does not contact employers when cases are filed. If your wages were being garnished, your payroll department may receive a notice to stop the garnishment, but no explanation is provided. Bankruptcy filings are public records accessible at the courthouse, but they are rarely consulted by employers.
Every financial situation is unique, and the answers above are general information rather than legal advice tailored to your circumstances. If you have questions about whether bankruptcy is right for you, contact the Law Office of Erin Bradley McAleer for a consultation. Our attorneys will review your specific situation and provide clear, honest guidance about your options under Washington law.
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