Get Legal Help For Filing Chapter 13 In Benton County

We get it—if you've got a steady income, you might think that bankruptcy isn't an option for you. But the thing is, even if you're doing okay on the income side, excessive debt can still weigh you down. In fact, many people in Washington state who have a good income but are buried underdebt find financial freedom through Chapter 13 bankruptcy. Chapter 13 lets you reorganize your debt, make payments you can afford, and get back to living your life without being constantly stressed about money.

We love everything theTri-Cities has to offer. From the scenic beauty of the Columbia River and Columbia Park to the outdoor activities at Badger Mountain, this area is a true gem. Whether we're enjoying a day at the farmers' market, cheering on the Tri-City Dust Devils at Gesa Stadium, or tasting wines at local vineyards like Bookwalter Winery, we always find plenty to do in the Tri-Cities. The warmth of our local community, along with the natural beauty, makes this the perfect place to call home.

If you feel stuck and can't seem to make progress on your debt, we're here for you. With over 30 years of experience, we've helped our neighbors just like you find relief with Chapter 13 bankruptcy. Our bankruptcy legal team inKennewick is here to support you when you're ready. Call us today for a free consultation to learn more about debt relief from Chapter 13 bankruptcy in Washington state.

What Makes Chapter 13 Bankruptcy Different From Chapter 7?

When filing for bankruptcy as an individual in Washington state, you have two primary choices. The first isChapter 7 or "liquidation bankruptcy."Liquidation bankruptcy discharges most unsecured debts in a relatively short time but requires you to sell your assets.Chapter 13, on the other hand, is known as "wage earners bankruptcy" and allows you to create a repayment plan lasting three to five years to catch up on debts like missed mortgage payments while keeping your property. Here are the key differences:

• Chapter 7 requires you to pass theWashington state "means test," showing your income falls belowWashington state's median level, while Chapter 13 is available to individuals with regular income and manageable debt limits.
• Chapter 7 usually takes 3-6 months and involves liquidatingnon-exempt assets, whereas Chapter 13 involves a repayment plan approved by the court.
• Chapter 7 wipes out mostunsecured debts, like credit cards, but Chapter 13 lets you pay part of your debts and discharges the rest after completing the plan.
• Washington state's homestead exemption often protects your home in Chapter 7, while Chapter 13 allows you to keep all your property while catching up on overdue payments.
• Chapter 7 offers temporary relief fromforeclosure, but Chapter 13 can stop foreclosure entirely by incorporating missed payments into your repayment plan.
• Chapter 7 has an eight-year waiting period before you can file again, while Chapter 13 may allow you to file sooner, depending on your situation.

The best way to determine which type of bankruptcy to file is to speak with our experienced attorneys. For over 30 years, we've been helping people across Washington state get debt relief from bankruptcy. We'll review your case and help you decide which option is best.

What Are The Pros And Cons Of Washington State Chapter 13 Bankruptcy?

If you are considering filing Chapter 13 with theBenton County Courts, it's important to know both the pros and cons to better navigate the process.

Pros Of Chapter 13 Bankruptcy:

• You Can Keep Your Property: One of the biggest advantages of Chapter 13 is that you cankeep your property, including your home, car, and other assets, even if you are behind on payments. As long as you stick to your repayment plan, you can avoidforeclosure andrepossession.
• You Have Protection From Creditors: Chapter 13 offers protection from your creditors through theautomatic stay. The stay is alegal order from the bankruptcy judge that halts collection actions likewage garnishments, lawsuits, andcreditor harassment. You'll have some breathing room as you work through your repayment plan.
• You Can Catch Up On Payments: If you're behind on your mortgage, car loan, or othersecured debts, Chapter 13 allows you to catch up on missed payments over 3 to 5 years. This way, you can avoid foreclosure or repossession and keep yourassets.
• You Can Create A Flexible Repayment Plan: With Chapter 13, you and your Kennewick bankruptcy attorney propose arepayment plan to the Benton County Courts that fits your current financial situation. Thebankruptcy judge bases your payments on your income and expenses to make it possible for you to meet your obligations. You may also be able to adjust your plan if your financial circumstances change during the repayment period.
• You Can Discharge Most Debts: After successfully completing your repayment plan, you may be able todischarge remaining unsecured debts, such as credit card balances, medical bills, and personal loans. You'll have a completely fresh financial start once the plan is complete.
• Preserve Your Credit Score Over Time: While Chapter 13 will still have an impact on yourcredit, it may be less damaging than Chapter 7 because it involves repayment of some or all of your debts. Over time, your credit score may improve as you successfully make payments.

Cons Of Chapter 13 Bankruptcy:

• Chapter 13 Takes Longer Than Chapter 7: Chapter 7 takes a couple of months to complete, while Chapter 13 takes 3 to 5 years. During this time, you must adhere to a strict repayment plan, which can be difficult if your financial situation changes unexpectedly.
• You Still Have To Repay Your Debts: In Chapter 13, you have to repay at least a portion of your debts. The repayment plan takes your income into account, and you'll need to repay a certain amount ofunsecured debt, which could still leave you with lingering financial obligations after your case is complete.
• Chapter 13 Can Strain Your Already Stretched Finances: Chapter 13 requires that you commit to a repayment plan that can stretch your budget. For some people, this can be afinancial strain, particularly if their income is not consistent or if they face unforeseen expenses during the repayment period.
• The Courts Do Not Discharge All Debts Under Chapter 13: While Chapter 13 can eliminate certain types of unsecured debts,some debts, including student loans (except in rare cases), child support, alimony, and certain tax debts, are not dischargeable. This means you will still be responsible forpaying these obligations.
• Your Credit Rating Goes Down: Chapter 13 bankruptcy will still negatively affect yourcredit score, though potentially less so than Chapter 7. Your Washington state bankruptcy will remain on your credit report for up to 7 years, which may make it more difficult to obtain new credit or loans during this period.

Before filing Chapter 13, you must qualify by having asteady income and meeting the debt limits. If your income is too low or your debt exceeds the debt limits set by the bankruptcy code, you may not be eligible for Chapter 13 bankruptcy.

How Can I Qualify For Washington State Chapter 13 Bankruptcy?

Chapter 13 is for Washington state residents with regular income ready to repay their creditors over a few years through a repayment plan. Here's a quick overview of the key qualifications in Washington state:

• Regular Income: You must have a stable source of income to make monthly payments toward your repayment plan.
• Debt Limits: Yoursecured debts cannot exceed $1,395,875, and your unsecured debts cannot exceed $465,275.
• Ability to Repay: You mustdemonstrate that you can pay at least a portion of your debts through the repayment plan.
• No Recent Bankruptcy Discharge:You cannot have had received a Chapter 13 discharge from the bankruptcy courts within the last 2 years or a Chapter 7 discharge within the last 4 years.

If you meet these criteria, you could qualify forChapter 13 and take advantage of its benefits. We can help you assess your situation and guide you through the process if you're unsure about your eligibility.

How Are Chapter 13 Payments Determined In Washington State?

In Washington state,Chapter 13 bankruptcy payments are determined by the court. The Benton County bankruptcy judge will assess your ability to pay by considering your monthly income and essential living expenses, including housing, utilities, and transportation. From there, the court will work with you to create a repayment plan, which will include payments to creditors based onpriority, with secured debts (like mortgages and car loans) usually being paid first. The amount you must pay each month depends on how muchdisposable income you'd have after covering basic expenses and the total amount of debt you need to repay. If your financial situation changes during the repayment period, you may be able to adjust your plan to reflect those changes.

Contact Kennewick's Chapter 13 Attorneys

However, if financial struggles are preventing you from fully enjoying the Tri-Cities, Chapter 13 bankruptcy could help. Whether you're facing overwhelming credit card debt, mortgage payments, or dealing with other financial burdens, Chapter 13 reorganizes your debt and creates a repayment plan that fits your budget. Call our Kennewick bankruptcy attorneys today for a free consultation. We'll help you regain control of your finances and get back to enjoying ourTri-Cities community.

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