Chapter 13 Bankruptcy in Washington
Chapter 13 bankruptcy is essentially a reorganization bankruptcy. In Chapter 13 a debtor files for protection and proposes a “Plan” that offers their creditors a monthly payment. Chapter 13 allows a debtor to restructure their debt. Although some debt is paid back, it is paid back on the Debtor’s terms, not the creditors.
Chapter 13 cases typically last a minimum of 36 months (3 years) to a maximum of 60 months (5 years). The length of a specific chapter 13 depends on many factors. An experienced chapter 13 attorney should be able to give you a good idea at an initial consultation of how long a chapter 13 would last should you file for Chapter 13 protection.
There are several benefits of Chapter 13, including:
- Potential to restructure, and possibly lower automobile loan payments
- Pay back tax debt over a period of time without penalties
- Catch up on arrears on home mortgages
- Discharge certain debts that you can’t discharge in chapter 7
- Get a suspended driver’s license back
- Less money up front to file. – most or all attorney fees are included in the repayment plan.
In some cases a debtor’s only option for bankruptcy protection is Chapter 13. For example, if a debtor earns to much money to qualify for a chapter 7 bankruptcy they may be required to file chapter 13 bankruptcy. Also, if you have filed and received a discharge in a chapter 7 case in the prior 8 years, your only option for bankruptcy help would be a chapter 13 bankruptcy.
Chapter 13 bankruptcy can be a complex area of the law. If you are looking at filing a chapter 13 you will definitely want to seek advice from one of our experienced Vancouver bankruptcy attorneys. Our office has successfully handled hundreds of chapter 13 cases. We understand our local Washington courts, chapter 13 bankruptcy Trustees and know how to get our clients the best possible result in their Chapter 13 bankruptcy case. To schedule a free consultation with one of our bankruptcy lawyers call us at 360-213-2722.