Find Experienced Chapter 7 Debt Relief Attorneys in Bellingham

If you are facing unmanageable debt, you are not alone. Around 6,700 Washington residents file for bankruptcy every year, with nearly 75% filing Chapter 7 bankruptcy. Chapter 7 bankruptcy, also called "liquidation bankruptcy," helps you discharge most of your debts fast.

Wondering if this debt relief option is suitable for you? You've come to the right place. Our Bellingham attorneys are experts in Washington's bankruptcy laws, so we can help you decide if bankruptcy is right for your financial situation and which chapter of bankruptcy to file if it is. Contact us now and schedule a free, one-on-one consultation with our knowledgeable attorneys. We'll explore your legal options so you can get back on track.

Chapter 7 bankruptcy is a legal debt relief strategy designed to eliminate most unsecured debts and provide you with a fresh financial start. It gives you a chance to wipe your slate clean and regain control over your finances. Here's a step-by-step breakdown of the Chapter 7 bankruptcy process in Whatcom County:

1. Speak With A Chapter 7 Bankruptcy Attorney: Bankruptcy is a complex process that will impact your life significantly, so you shouldn’t face it alone. You need the legal expertise of a skilled Bellingham Chapter 7 bankruptcy lawyer by your side.
2. Determine Financial Eligibility For Bankruptcy: Evaluate income, expenses, and debts to determine eligibility under the means test. This test compares your income to the state median income to determine if you meet the threshold to qualify for bankruptcy.
3. Complete Mandatory Credit Counseling: Participate in a Washington court-approved credit counseling course. Under Washington state law, this is a requirement before you can file for Chapter 7.
4. File The Chapter 7 Bankruptcy Petition: Submit the required documents, including a detailed financial statement, to the bankruptcy court. Your filing officially begins the bankruptcy process.
5. The Automatic Stay Goes Into Effect: Once your attorney files the petition, the automatic stay goes into effect. Automatic stays halt all collection actions, including creditor harassment, wage garnishments, and foreclosure proceedings.
6. A Bankruptcy Trustee Reviews Your Filing: A Whatcom County court-appointed bankruptcy trustee reviews submitted paperwork, identifies non-exempt assets, and oversees the case. Exempt property, protected under state and federal laws, remains untouched.
7. Attend The 341 Meeting Of Creditors: You will attend a mandatory meeting, known as the 341 Meeting, where creditors and the trustee may ask questions about your filing.
8. Complete A Debtor Education Course: Complete a second financial education course to learn strategies for managing finances post-bankruptcy. Your attorney must then file a certificate of completion with the court.
9. The Whatcom County Court Discharges Debt: The Whatcom County Court issues a discharge order, eliminating eligible debts, including credit card, medical bill, and personal loan debts.

Now that you have an idea of how Chapter 7 bankruptcy could help you eliminate debt and rebuild financial stability, it’s time to determine if it is the right option. Contact our Bellingham attorneys for a free consultation, where we’ll review your financial circumstances and look at all the legal debt relief options. If Chapter 7 is right for you, we'll get started right away.

The means test, a requirement under the U.S. Bankruptcy Code, is a calculation used to determine whether you qualify for Chapter 7 bankruptcy. Because Chapter 7 bankruptcy is specifically for individuals who truly need it rather than for those who can afford to pay their debts, the means test was created to determine whether you have the means to repay a significant portion of your debts or whether your income is low enough to warrant a discharge of your unsecured debts without requiring repayment. The key stipulations of the means test are as follows:

• Median Income Comparison: The first step is to compare your current monthly income (CMI) against the median income of a household of a comparable size in Washington state, which the S. Census Bureau updates annually. If your income is below the Washington state median, you automatically pass the means test and can then proceed with Chapter 7 bankruptcy.
• CMI: CMI includes your wages, salary, business income, rental income, retirement benefits, and any other regular source of income. It does not include Social Security benefits or unemployment compensation.
• Allowable Deductions: If your income exceeds the median for your household size, you move to the second part of the means test. Here, you're allowed certain deductions based on your living expenses, such as:
  • National Standard Deductions: The IRS defines the National Standard Deductions, which include allowances for housing, transportation, and utilities.
  • Actual Expenses: For items not covered by the national standard, such as child care or medical expenses, you can deduct actual costs.
  • Secured Debt: You can also deduct expenses for secured debt payments (like mortgage or car loans) that are part of your monthly expenses.
• Disposable Income Calculation: After applying the above deductions, you will calculate the remaining disposable income. If you have too much disposable income, you may not qualify for Chapter 7 bankruptcy.
• Exceptions And Adjustments: Certain individuals, including those whose debts are primarily non-consumer debts (like business debts) or those who have disabilities, are exempt from the means test. Special circumstances like high medical expenses or a significant drop in income also affect your eligibility.

If you do not meet the qualifications for Chapter 7 bankruptcy, don't worry. You can still qualify for other debt relief strategies like Chapter 13 bankruptcy.

The first step to determining your eligibility is to consult a Bellingham lawyer whose practice is focused on bankruptcy. We will help you gather the required documentation of your current monthly income, including all sources, like wages, self-employment, alimony, child support, and rental income. Then, we'll compare your income to the median household income in Washington for your family size. If your income is below the median, you qualify for Chapter 7 bankruptcy automatically.

Chapter 7 bankruptcy eliminates most unsecured debts, providing relief from overwhelming financial burdens. Common debts that are discharged include:

• Credit card balances
• Medical bills
• Unsecured personal loans
• Utility bills
• Payday loans
• Certain lawsuit judgments

However, Chapter 7 bankruptcy will not eliminate all debts, including:

• Student loans (with an exception for undue hardship)
• Child support
• Alimony
• Most tax debts
• Debts from fraud or malicious conduct
• Government fines and penalties
• Secured debts (unless you surrender the assets)

As Chapter 7 bankruptcy does not discharge all debts, it is important to have a solid personal finance strategy. Our Bellingham attorneys understand not only how to file bankruptcy but also how to use it to rebuild your financial future.

Filing for Chapter 7 bankruptcy impacts every aspect of your life, making it a very stressful process. Fortunately, with our skilled legal representation in Bellingham, you won't have to face it alone. We'll assist you throughout, offering compassionate legal guidance. Our team won't just represent you through the bankruptcy proceedings––we'll also help you create a financial plan that rebuilds your future. Let’s take a closer look at how exactly our firm can help:

• Determine If You Qualify: We'll review your income, expenses, and debts to see if Chapter 7 is the right fit for you and explain your options clearly.
• Handle All The Legal Paperwork: Our Bellingham legal team prepares and files everything for you, from financial disclosures to the bankruptcy petition, making sure it's accurate.
• Stop Creditor Harassment: Once we file your case, the automatic stay kicks in. That means no more calls, no more wage garnishments, and no more lawsuits from creditors.
• Protect What You Own: We'll help you use Washington's exemption laws to keep key assets like your home, car, and retirement savings safe from liquidation.
• Represent You At The 341 Meeting: When it's time to meet with the bankruptcy trustee and creditors, we'll be right there with you, answering questions and protecting your interests.
• Handle Non-Dischargeable Debts: For debts that Chapter 7 doesn't cover, like taxes or student loans, we'll help you create a plan to manage them effectively.
• Plan For Life After Bankruptcy: We'll give you tools to rebuild your credit, create a budget, and get back on track financially after your case is complete.

Chapter 7 can be overwhelming, but you don't have to face it alone. Our attorneys are here to walk you through every step to protect what matters most.

We are passionate about helping our Bellingham neighbors get out of debt because we love our community. From the historic charm of and the outdoor wonders at Whatcom Falls Park to the local IPAs at Boundary Bay Brewery, there's so much to appreciate about living here. Bellingham is a place we're proud to call home, whether we're browsing the Bellingham Farmers Market or taking in the stunning waterfront views at Boulevard Park with our neighbors.

However, as residents ourselves, we also understand living in Bellingham can get expensive, with rising housing costs, healthcare expenses, and day-to-day essentials adding up quickly. It's easy for debt to spiral out of control, but there's hope. Our Bellingham bankruptcy attorneys will help you find the relief you need. Contact us now for a free consultation.