Bankruptcy in Washington State

We practice law in the state of Washington with offices in Vancouver and Kennewick. Bankruptcy proceedings are typically covered by federal laws, but there are certain state-by-state peculiarities. Let’s take a look at some of the steps that you would take if you are going to be filing for bankruptcy in Washington state.

 

Credit and Debtor Education Counseling

 

The government wants to make sure that you have a firm grasp on exactly what you are getting into when you file for bankruptcy. To this end, you are required to complete a pre-bankruptcy credit counseling course. These courses are offered by a number of different sources that are approved to provide courses for Washington residents. Plus, you can complete the course online, so they try to make it as convenient as possible. You can see a list of the approved credit counseling agencies on the United States Department of Justice website. To adhere to the guidelines, you have to complete this course within 180 days of your bankruptcy filing.

 

There is another form of testing required when you file for bankruptcy in Washington. The ultimate objective is to have certain debts discharged, which means they are essentially wiped away. After the bankruptcy has been filed, you have to complete a debtor education course, and if you fail to do so, your debts will not be discharged. You can access the list of approved course providers here.

 

Document Completion and Filing

 

As you might imagine, you have to complete and submit bankruptcy forms that are specific to the state of Washington. Your assets, your debts, and your income will be recorded on the forms, but you have to be aware of the fact that some of your property is exempt for bankruptcy purposes. The exact nature of the exemptions and will vary from state to state, and a Washington bankruptcy attorney can help you navigate these complicated waters.

 

There is also a means test applied when you file for bankruptcy in Washington. To qualify for a Chapter 7, you must be able to prove that you can’t afford to keep up with a repayment plan that could be part of a Chapter 13 filing. You automatically pass the test if your income is less than the median income in the state of Washington at the time of the filing. According to the Washington State Department of Social and Health Services, as of the end of the 2016 calendar year, the median income for a single individual was $3797 per month, which factors out to $45,564.

 

Give Us a Call Right Now!

 

Now that you have a bit of basic information, you may want to take the next step toward debt relief. If you would like to schedule a no-obligation case evaluation with a licensed Vancouver or Kennewick, Washington bankruptcy attorney, give us a call at 1-800-682-9568

Chapter 7 Bankruptcy and Social Security Benefits

Before we get into the matter of Social Security benefits, we should provide some context about Chapter 7 bankruptcy and the intricacies that go along with it. This is a liquidation form of bankruptcy, and depending on the circumstances, it can eliminate some or all of the debts that are making like difficult for you.

 

To qualify for this form of bankruptcy, you must be able to pass the means test that is in place to determine whether you have enough disposable income to make an effort to pay back your debts over time. A formula is used to make this determination if your income is more than the median income in your state. Getting back to Social Security benefits, your monthly direct deposit would not be counted when this means test is being conducted.

 

As we mentioned previously, this is a liquidation bankruptcy, and this means that property that is not exempt or secured would be turned over to a bankruptcy trustee. Under state laws, the trustee would liquidate the property and use the proceeds to pay back creditors. The good news is that many different types of property are exempt, including your Social Security benefits. For your information, here are some of the other types of property that are exempt when you are filing for a Chapter 7 bankruptcy:

 

  • Alimony
  • $47,000 of Home Equity for joint filers
  • $3775 of Motor Vehicle Equity
  • Retirement Accounts and Pensions
  • Veterans Benefits
  • Some Personal Property

 

You are going to be required to submit a great deal of paperwork when you file for Chapter 7, including a detailed accounting of your assets. While it is true that your Social Security benefits are exempt, you have to be sure that it is clear that benefits that may have accumulated in a bank account are in fact coming from Social Security. If you co-mingle your funds in one account, it can be hard to prove that a portion of the account should be exempt because it came from your Social Security benefits.

 

Contact OlsenDaines Today!

 

If you have questions about bankruptcy, we can provide answers, and we can guide you toward the optimal course of action given your unique set of circumstances. We offer free bankruptcy consultations to people in Tigard, Salem, Klamath Falls, Roseburg, and numerous other communities throughout the state of Oregon. If you would like to set up an appointment, simply send us a brief message through our contact page and we will get back in touch with you soon as we can.

 

Am I Personally Responsible for My Business Debts?

Many people are in business for themselves, and being your own boss certainly has its advantages. Of course, there are certain responsibilities that go along with business ownership as well. The lay of the land can be a bit tricky when you are trying to determine whether you can be held personally responsible for debts that are incurred by your business. We will provide some insight in this blog post.

 

Business Formation

 

When you are starting your own business, you should be very discerning about the business entity that you choose, because it will have everything to do with personal responsibility for business debts. If you are a sole proprietor, there is no separation between you as an individual and the actions of your business. As a result, you would absolutely be responsible for debts incurred by the business. The same thing is true of a general partnership. Each partner is responsible for all of the partnership’s debts. It may not sound fair, but if you have personal assets, and your partner is insolvent, you would be responsible for all of the debts, not just your 50 percent share.

 

Things are different with limited liability companies and corporations. Generally speaking, you would not be personally responsible for business debts under these structures. However, there are exceptions to this rule. If you personally guarantee a business-related debt in writing, it would be your personal responsibility. This is not uncommon, because some vendors, leaseholders, and others know that the business entity would not be liable, so they insist on personal guarantees.

 

Of course, if you put personal property up as collateral for a loan that you will use for business purposes, the lender could seek to attach the property if you don’t pay the debt. If you use a personal line of credit or a credit card to infuse your business with resources, the business structure would do nothing to limit your liability. When you digest all of the above information, you can see why you should think long and hard about the business structure that you should utilize when you are establishing your enterprise.

 

Schedule a Complimentary Case Evaluation

 

If your business debt is becoming unmanageable, there are steps that you can take to ease the burden. We are here for you if you would like to discuss them with a licensed Portland, Oregon bankruptcy attorney. Our firm offers free consultations to people in The City of Roses and many other communities throughout the Beaver State. To schedule an appointment, call us toll-free at 1-800-682-9568.

 

 

Can I File for Bankruptcy More Than Once?

Bankruptcy can be a pathway toward a fresh financial start if you simply cannot keep up with all of your financial obligations. Many of your debts will be discharged, and you can regain your footing and look ahead toward a fruitful future. If all goes well, you may never look back. You can do all the right things to rebuild your credit record, and in either seven or 10 years depending on the type of bankruptcy that was filed, it will no longer be on your credit report.

 

This successful scenario often plays itself out, especially if you work with a bankruptcy attorney that will help you understand the right steps to take. However, in some cases, circumstances can call for a subsequent bankruptcy filing. It is possible to file for bankruptcy more than once, but there are some important details that you have to understand with regard to the timing.

 

First, let’s look at multiple filings of a Chapter 7 bankruptcy. This type of bankruptcy is a liquidation bankruptcy, and unsecured debt can be discharged when you successfully file. While there is no law that prevents you from filing another Chapter 7 bankruptcy within a particular time frame, debts cannot be discharged unless you wait for at eight years to file again. The time frame for filing for a new Chapter 13 discharge is two years after the first filing.

 

Things are different when you file once, and you subsequently decide to file for a different type of bankruptcy. If you were in Chapter 7 bankruptcy, you could potentially qualify for a discharge under a Chapter 13 four years after the initial filing. When you flip the scenario around for a Chapter 13 filer that wants to file for Chapter 7 at a later date, you have to wait for six years if you want to get a discharge. However, there are two exceptions to this rule. There is no waiting period at all if you repaid the entirety of your unsecured debt in the Chapter 13 repayment plan, or 70 percent if it is determined that you made a sincere and concerted effort to satisfy your obligations.

 

Give Us a Call to Schedule a Free Case Evaluation

 

If you would like to learn more about multiple bankruptcy filings or any other debt relief matter, we are here to help. We offer free consultations to people in Eugene, Portland, Tigard, and several other cities in Oregon, and we also have offices in Vancouver and Tri-Cities in Washington. To schedule a free consultation, call us right now toll-free at 1-800-682-9568.

What is a Bankruptcy Means Test?

A Chapter 7 bankruptcy is a liquidation bankruptcy. With this form of bankruptcy, property that is not exempt would be turned over to a bankruptcy trustee. In most cases, there is little to no non-exempt property to surrender to the trustee. However, if there is non-exempt property, the trustee would be required to sell the property and use the proceeds to pay back as much of the debt as possible. We should point out the fact that debts are prioritized, and unsecured debts, like credit cards and unpaid medical bills, are looked upon as non-priority debts.

 

A Chapter 7 bankruptcy can be a potential solution for people who do not have enough disposable income to pay down all or some of their debts over time. To determine whether or not a person is qualified for Chapter 7, a means test is administered. We have offices in Portland, Eugene, Medford, Salem, and a number of other cities in Oregon, and we also have locations in the state of Washington. If your income is below the median income in your state of residence, you would automatically pass this means test, and you would qualify for a Chapter 7 filing.

 

You are not automatically precluded from Chapter 7 eligibility if your income exceeds the median income in your state. There is a formula that is utilized to measure an applicant’s ability to use his or her disposal income to adhere to a payment plan over a three-year or five-year period. If you have very limited income left after your basic life responsibilities are met, you may still be able to qualify for a Chapter 7 bankruptcy filing.

 

All is not lost if you cannot file for a Chapter 7 because you cannot pass the means test, because a Chapter 13 bankruptcy can be a viable alternative. If you would like to discuss your options with a knowledgeable member of our team, our doors are open. We can get to know you, gain an understanding of your situation, and make the appropriate recommendations. To schedule a free consultation, send us a message through our contact page and we will be back in touch with you shortly.

 

How Do You Rebuild Your Credit After Bankruptcy?

Your credit score is extremely important in many different ways. Everyone likes to have spending power, and you are definitely going to be limited if you have credit woes. The lack of financial freedom can be disheartening, but the damage can cut much deeper. Renting an apartment can be difficult if you have a very poor credit score, and you may even be precluded from consideration for certain jobs if your credit is not up to par.

 

It can seem like a bankruptcy filing is just going to make a bad situation worse if your credit is taking hit after hit, but this is not necessarily the case. While it is true that a Chapter 7 bankruptcy will remain on your credit report for 10 years, you can start to rebuild your credit right away if you are a homeowner. If you file for a Chapter 7 bankruptcy, and you have a mortgage on a home with limited equity, you can maintain ownership of the property (if you are up to date on the payments). The same thing is true for your car. If you continue to make these payments in a timely manner, your responsible behavior will have a positive impact on your credit going forward.

 

Many people are surprised to find out that they can in fact get credit cards with low limits after they file for bankruptcy. In addition to the low limits, there may also be rather high annual fees, and interest rates will be high. If credit card usage got you into trouble in the first place, you may be reluctant to try to obtain lines of credit after you have successfully filed for bankruptcy.

 

This makes sense on the one hand, but on the other hand, if you can get credit extended to you, and you act wisely, your score will improve over time. In addition to credit cards, if you don’t own a home, after a couple of years you may actually be able to qualify for a mortgage. A motor vehicle loan may also be available to you after bankruptcy, but you should be prepared to pay a high interest rate, and a significant down payment may be required.

 

Schedule a Free, No Obligation Case Evaluation

 

If you are in Portland, Salem, Eugene, Medford or any other city of significant size in Oregon, we have a bankruptcy law office near you. We offer free initial consultations, and you can set up an appointment right now if you call us toll-free at 1-800-682-9568.

 

 

Who Can Qualify for a Chapter 12 Bankruptcy?

It can be a bit confusing for the layperson to sort through all the different types of bankruptcies that you may hear about. There is Chapter 7, Chapter 11, Chapter 12, and Chapter 13, and you are naturally going to wonder how you should choose from this menu. This is understandable, but when you absorb the facts, you will invariably see your options shrink.

 

First off, a Chapter 11 bankruptcy is typically utilized by businesses, though individuals with very high levels of debt sometimes utilize this type of bankruptcy.

 

A Chapter 7 bankruptcy is a liquidation bankruptcy that is often used by individual debtors. To qualify for this type of bankruptcy, you have to be able to pass a means test. The basic rule of thumb is that you pass the test if your income is less than the median income in your state. However, under some circumstances, it is possible to qualify even if your income exceeds the median.

 

If you do not qualify for Chapter 7, or if you choose to go a different route for other reasons, you could opt for a Chapter 13 bankruptcy. This is a reorganization, so you submit a repayment plan to the court that spans for three years or five years. You may not have enough disposable income to make payments toward all of your responsibilities, so there is a pecking order of sorts that has been established to prioritize debts for repayment purposes.

 

Family Farms and Fishing Businesses

 

Now that we have looked at the other forms of bankruptcy, we can dig into Chapter 12. We practice law in the states of Oregon and Washington, with offices in Portland, Eugene, Vancouver, and quite a few other cities. In our part of the country there are many family farms, and there are family fishing businesses in coastal communities. Chapter 12 bankruptcy is specifically designed for family farmers and fishing businesses that derive more than half of their gross income from these enterprises. For a farmer to qualify, at least half of the total debt must be attributable to the business operations. This figure is 80 percent for commercial fishing businesses.

 

If you would like to discuss a Chapter 12 bankruptcy filing or any other debt relief strategy with a licensed bankruptcy attorney, we would be more than glad to assist you. We offer free case evaluations, and you can give us a call at 1-800-682-9568 to schedule an appointment.

 

 

Will Bankruptcy Impact My Retirement Funds?

Before we address the way that bankruptcy may or may not impact your retirement funds, we should explain the basic differences between a Chapter 7 and a Chapter 13. These are the two types of bankruptcies that are most commonly utilized by individuals. A Chapter 7 is a liquidation bankruptcy. Unsecured debts like credit card debts and medical bills are discharged under this form of bankruptcy. If you are current on your mortgage payments and your equity falls within a certain limit, you can retain ownership of your home if you were to file for a Chapter 7 bankruptcy.

 

You have to pass a means test to be able to qualify for a Chapter 7 filing. If your income is less than the median in the state of your residence, you would automatically pass this test. Getting back to the retirement question, if you are receiving Social Security benefits, they would not be counted when you are calculating your eligibility for Chapter 7 under the means test.

 

A Chapter 13 bankruptcy would be an option if you cannot pass this means test. It may also be a better choice for you even if you could qualify for Chapter 7, particularly if you are behind on your mortgage. This is a reorganization bankruptcy. Your disposable income is utilized to pay back some of your debts over a three-year or a five-year period. Mortgage arrearage could be corrected over the course of this repayment arrangement. When it comes to Social Security when you are in Chapter 13, the laws vary with regard to whether your benefits must be claimed as income, so your attorney will discuss this with you.

 

Under federal laws, virtually all retirement accounts are looked upon as exempt property when a bankruptcy is filed. The types of accounts that are exempt include 401(k)s, individual retirement accounts, 403(b)s, Keoughs, and profit-sharing plans. Most pension plans are also safe when you file for bankruptcy.

 

We Are Here to Help!

 

If you have questions about debt relief, our firm can provide you with answers. We have offices in Salem, Tigard, Albany, Portland, and other major metropolitan areas in Oregon, and we also serve clients in Tri-Cities and Vancouver in Washington. Our firm offers complimentary, no obligation initial consultations, and you can request an appointment if you send us a quick message through our contact page.

 

 

Chapter 13 Bankruptcy: Three Things You Need to Know

 

If you are in need of debt relief, you may be thinking about bankruptcy. It is important to understand the fact that there are multiple different types of bankruptcies. The ideal choice will depend upon your circumstances, so you should have some basic knowledge regarding your options. A Chapter 13 bankruptcy is one possibility, and when you absorb these three facts, you will come away with a rudimentary understanding.

 

1.) An automatic stay is granted.

 

Many people consider bankruptcy because they are being inundated with collection letters and threatening calls. When you file for a Chapter 13 bankruptcy, you get immediate relief, because an automatic stay will go into effect. This prohibits creditors from trying to collect on the unpaid debts, so you have some time to regroup as you prepare yourself for life after bankruptcy.

 

2.) You can keep your property.

 

You may assume that you have to surrender your property when you file for any type of bankruptcy. In fact, this is not the case with a Chapter 13. This is a reorganization bankruptcy rather than a liquidation. If the bankruptcy goes through successfully, you will be able to maintain ownership of your property.

 

3.) Your debts are paid back over time.

 

When you file for Chapter 13 bankruptcy, you submit a repayment plan to the court. After the basic necessities of life are met, the remaining disposable income must go toward paying back your debts. The repayment plan lasts for 3 to 5 years. Under bankruptcy laws, certain types of debts are priority debts, and they would be paid first. Nonpriority debts, like credit card bills, would be at the end of the list. Depending on the extent of your disposable income, some or all of this non-priority debt may be discharged.

 

Schedule a Free Case Evaluation

 

Now that you know a little about Chapter 13, you may want to sit down and discuss this option and other possible courses of action with a licensed bankruptcy attorney. If you live anywhere in the state of Oregon, we probably have an office near you, as we have locations in Eugene, Portland, Grants Pass, Medford, Coos Bay, and a handful of other cities. We also have an office in Vancouver, Washington. To schedule a free, no obligation case evaluation give us a call at 1-800-682-9568.

Is There a Chapter 13 Bankruptcy Debt Limit?

Chapter 13 is a reorganization bankruptcy. With this form of bankruptcy, you get an automatic stay as soon as you file. This shields you from most collection efforts while the bankruptcy is in progress, so you get some immediate relief. You create a repayment plan that will span for three years or five years when you are going through this type of bankruptcy.

The court allows you to maintain possession of enough resources to satisfy your basic necessities, and income that is looked upon as disposable income will be earmarked to pay your debts over the course of the repayment plan. Certain debts are considered to be priority debts, and they are placed ahead of non-priority debts like medical expenses and credit card debt. If there is not enough disposable income to pay these non-priority debts, they can be discharged in a Chapter 13 bankruptcy. This type of bankruptcy will stay on your credit report for seven years, but that does not mean that you cannot obtain new lines of credit sooner.

Most individuals will qualify for a Chapter 13 bankruptcy filing. However, if you have an extraordinarily high level of debt, you may not be eligible because there are debt limits. We use the word “limits” in the plural because there are different parameters for secured debt and unsecured debt. The limit for secured debt (like real estate and motor vehicles) is $1,184,200. For unsecured debt, the Chapter 13 debt limit is $394,725.  If your debt exceeds these limits, you still have recourse. You could choose to file for a Chapter 11 bankruptcy, which is another type of reorganization that is usually utilized by businesses.

Schedule a Free Consultation

We serve people in Vancouver and the Tri-Cities area in Washington, and we also have offices in Portland, Eugene, and many other cities in the state of Oregon. If you are interested in a bankruptcy filing, our doors are open, and we offer complementary, no obligation initial consultations. You can request an appointment right now through this website if you click this link and fill in the form that you see: free bankruptcy case evaluation.