Knowledgeable Chapter 13 Attorneys in Bellingham Help You Get Debt Relief

Looking to get out of debt for good? Filing for bankruptcy might provide the relief you need. Bankruptcy is a legal method that allows you to discharge your debts. It has different types, with one of them being Chapter 13 bankruptcy, also called the "wage earner's plan." This is ideal for people with a steady income. Rather than having to manage multiple increasing debts, Chapter 13 helps Washington residents keep their assets and create a plan to repay the debt.

Chapter 13 differs from Chapter 7 significantly, so understanding which is best for your financial situation requires legal expertise. That is where our Bellingham bankruptcy lawyers come in. With over 30 years of experience helping Whatcom County and Washington state residents navigate complex Washington bankruptcy laws, we've assisted people just like you to find a way out of debt. Call us now for a free consultation to learn more about Chapter 13 bankruptcy and other debt relief options.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is for people with a stable, steady income who are trying to find debt relief without losing assets like their home or car. In Washington state, Chapter 13 bankruptcy allows you to reorganize your debt instead of liquidating assets like in Chapter 7 bankruptcy. You must propose a repayment plan to the Whatcom County Courts, which will help you repay creditors over three to five years. Your repayment plan also outlines how much you can afford to pay each month, and creditors are legally obligated to accept those terms.

In Whatcom County, you would file your Chapter 13 bankruptcy petition with the help of an experienced attorney. Your bankruptcy filing will include financial documents related to your income, assets, debts, and a detailed repayment plan. Once your attorney files your case, an automatic stay goes into effect. This immediately stops all creditor actions, including wage garnishments, foreclosure proceedings, or collection calls, giving you breathing space to work out a repayment strategy. If you want to know if Chapter 13 is right for you, consult with our experienced bankruptcy attorneys today.

What Is The 341 Meeting Of The Creditors?

The 341 Meeting of Creditors is required under the United States Federal Bankruptcy Code. It takes place about 20 to 40 days after you file your Chapter 13 petition with the Whatcom County Courts. This meeting is an opportunity for your creditors and, more importantly, the bankruptcy trustee to ask questions about your financial situation, your debts, and the repayment plan you've proposed.

Though the name may sound intimidating, the 341 Meeting is not a court hearing. Creditors won't cross-examine you in the same way you might expect in a trial. They may attend this meeting to ask questions about the details of your bankruptcy petition, but they can't object to your plan outright during this meeting. However, it's still a formal process that requires the support of your Bellingham Chapter 13 bankruptcy attorneys.

The 341 Meeting is also an opportunity for the bankruptcy trustee and your creditors to determine if the repayment plan you've proposed is fair and feasible. The trustee will review your case, verify your income, expenses, assets, and liabilities, and assess whether your plan meets the required standards under the federal code. If your repayment plan is reasonable, you'll be eligible for debt relief.

The 341 Meeting is especially significant for Chapter 13 bankruptcy because your repayment plan needs to be confirmed by the bankruptcy court. Without the meeting and your bankruptcy trustee's approval, the Whatcom County Courts may delay or dismiss your case. So, preparing for it is essential. Here's what you will need:

• Proof Of Identification: Bring a valid government-issued ID (like your Washington driver's license or passport) and your Social Security card. This is necessary to verify your identity before the 341 meeting can begin.
• Proof Of Income: Bring proof of income like pay stubs or bank statements. Your bankruptcy trustee needs to verify your current income to ensure that your repayment plan is feasible and reasonable.
• Tax Returns: You will need to provide copies of your most recent tax returns to confirm your financial situation.
• Debt And Asset Information: Have a comprehensive list of your debts, including secured and unsecured debts, and any assets you own.
• Chapter 13 Plan: Before the meeting, your Chapter 13 repayment plan must be prepared and must detail how much of your debt you'll pay back over the next three to five years.

Attending the 341 Meeting of Creditors is a stressful experience, but with proper preparation and the support of our Bellingham legal team, it is relatively straightforward.

Preparing Your Chapter 13 Repayment Plan

Your Chapter 13 repayment plan is an outline of how you will repay your creditors. Creating one that complies with bankruptcy laws can be complex, but our experienced Bellingham attorneys are here to help. Here's a checklist of what you'll need to prepare your Chapter 13 repayment plan:

• Proof of Income: Provide documentation of all sources of income, including wages, self-employment income, Social Security, rental income, and child support.
• Asset Information: List down your assets and their current fair market value.
• Monthly Expenses: Document your necessary living expenses like rent, utilities, food, transportation, and insurance.
• Tax Returns: Typically, the last two years of tax returns are required to confirm your financial history.
• List of Debts: List all secured debts (like mortgages and car loans), unsecured debts (like credit cards and medical bills), and priority debts (like taxes and child support arrears).
• Secured Debts Status: If you are behind on mortgage or car loan payments, your plan must address how you will catch up on these arrears.
• Court Forms: The Western District of Washington Bankruptcy Court requires specific forms that detail your financial situation, including Schedules I (Income) and J (Expenses).

Once you have collected all of this documentation, you can then start making your repayment plan. Your Bellingham attorney will be at your side throughout the entire process to guide you:

1. Calculate Your Disposable Income: After deducting allowable expenses, the remaining income is your disposable income, which determines how much you can pay creditors.
2. Prioritize Debts: You must pay priority debts in full over the course of the plan. Secured debts must either be repaid or restructured, and unsecured debts are paid based on what's left after covering priority and secured debts.
3. Comply With The Law: Your plan must comply with all the requirements under federal and Washington state bankruptcy laws, including using all disposable income to repay creditors and covering priority debts fully.

Once completed, your Bellingham bankruptcy attorney will file your Chapter 13 repayment plan with the Whatcom County bankruptcy court. The Whatcom County Courts will then assign a bankruptcy trustee to your case to review the plan and ensure it meets legal standards.

Work With The Best Chapter 13 Bankruptcy Attorneys In Bellingham

Our Bellingham bankruptcy attorneys are experts in crafting Chapter 13 repayment plans that meet all legal requirements and your financial situation. We'll review your income, debts, and expenses to determine the best repayment terms. Our team will also make sure to protect all of your applicable property and assets under Washington state exemption laws. Next, we'll help you draft a Chapter 13 repayment plan and represent you at the 341 Meeting of Creditors. To ensure everything goes smoothly, we will handle any disputes or objections from creditors during the process.

Further, we don't just stop once your repayment plan goes into effect. Throughout the repayment period, our Bellingham legal team will address any legal issues that arise. We'll also help you develop a personal finance plan that will keep you on track. Further, if for any reason you need to make adjustments or modifications, we'll support you, too. When you work with our team in Bellingham, you get a full-service experience.

Contact Our Local Bellingham Law Office Today

Bellingham is more than just a town to us––it's our community. We love the way of life here. We spend our mornings browsing Avenue Bread, our afternoons discovering treasures at the Bellingham Antique Mall, and nights relaxing at Twin Sisters Brewing. Beyond the city life, there's so much to explore in nature, from the Interurban Trail to the Chuckanut Drive scenic byway. Bellingham is truly a special place to call home.

However, we know that housing prices, utility bills, and everyday costs have gone up across the city over the last couple of years. If you're struggling to stay afloat, our Bellingham attorneys specializing in debt relief can help. We'll explore all your legal options, including Chapter 13 bankruptcy, to restructure your debt and help you regain control of your finances.

Contact the best Bellingham bankruptcy attorneys today for a free consultation.

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