When you find yourself drowning in debt and you have exhausted all other remedies it may be time to find a bankruptcy attorney to review your situation. Bankruptcy is basically a fresh start for people who have become indebted to the point of ruin. Most bankruptcies are a result of overwhelming medical bills or some other life altering situation like divorce.

Your first step should be a visit to a credit counselor to see if they can negotiate with your creditors and get you started on a repayment plan you can live with. If this is not possible, bankruptcy offers’ you a version of this called Chapter 13. This is a way to keep your home and vehicle, catch up on back payments and reduce your other debt to a manageable amount. This can take 3-5 years to accomplish but works well for people with steady income and nonexempt assets. Chapter 7 bankruptcy is called the liquidation plan. Your case will be turned over to a trustee who will liquidate your nonexempt assets and distribute the proceeds to your creditors. Washington statutes list items that are exempt from liquidation such as insurance, pensions, personal items and one vehicle per adult depending on the value. You cannot discharge government-guaranteed student loans, alimony or child support under any circumstances. If you file Chapter 13 your bankruptcy will be discharged after you have completed your repayment plan and Chapter 7 within about four months of your filing date. The laws and processes of bankruptcy are complicated and you really need the assistance of an experienced attorney. There are two additional types of bankruptcy called Chapter 11 and Chapter 12. The latter are for family farms and Chapter 11 is for businesses or individuals with very large debts. The current cost in the state of Washington to file is $185 for Chapter 13 and $200 for Chapter 7. You can keep any assets obtained after filing for bankruptcy except for a settlement, inheritance or life insurance benefits received within 180 days of filing. If the property is exempt in the state of Washington , you do not have to include it. If you are lost in debt and need a way out, get started today at a consultation with a bankruptcy attorney. You can have a fresh start and good credit again. You will be surprised how many creditors are willing to give you a second chance. You cannot file Chapter 7 again for six years after your initial filing date. Chapter 13 can be filed at any time.

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