Get Expert Legal Help Filing Chapter 13 in Spokane

Costs are rising across Spokane—from groceries at Rosauers to rent in the South Hill—and for many Spokanites, so is their debt. It's a scary situation, especially when those debts start piling so high you don't feel like they'll ever get paid off. If you're one of them, know you're not alone. Even the most fiscally responsible, hardworking Spokanites get stuck in debt cycles.

Our knowledgeable bankruptcy attorneys bring over 30 years of experience helping Spokane and Washington state residents tackle these financial challenges. We'll take the time to understand your unique financial situation and explore if Chapter 13 bankruptcy is the solution to your debt. If it is the best fit, we'll guide you through every step of the process, from filing with the Spokane County Courts to completing your repayment plan.

Don't wait to get the help you need. Call our Spokane Chapter 13 bankruptcy attorneys today for a free consultation and take the first step toward financial freedom.

Chapter 13 bankruptcy, called the "wage earner's plan," is for Spokanites with a regular income to create a comprehensive repayment plan for their debts. Unlike Chapter 7, which liquidates your assets to pay your debts, you keep your property under Chapter 13 and make affordable payments over three to five years instead. People with valuable assets or high income who don't qualify for Chapter 7 file for Chapter 13.

With Chapter 13, you propose a repayment plan to the Spokane County Courts that details how you will pay back creditors based on your disposable income. Certain debts, like priority debts such as taxes or child support, must be paid in full. In contrast, others, like unsecured debts from credit cards or medical bills, may be partially repaid or even discharged after the repayment period.

Washington residents filing for Chapter 13 must adhere to federal bankruptcy laws, specifically those outlined in Title 11 of the U.S. Code. The Chapter 13 bankruptcy process begins with filing a petition in the U.S. Bankruptcy Court for the Eastern District of Washington, which serves Spokane County. Upon filing, the judge issues an automatic stay, halting creditor collection efforts, including wage garnishments and foreclosure proceedings.

While Chapter 13 provides fast debt relief, it is not the right debt relief choice for everyone. To learn if it is for you, contact our Spokane bankruptcy attorneys today.

Under Chapter 13, not all debts are qualified for discharge. However, many types of unsecured debts are eligible to give you a fresh financial start. Here's a breakdown of dischargeable debts under Chapter 13:

• Credit card debt
• Medical bills
• Personal loans
• Certain utility bills
• Some older tax debts
• Debts from lease agreements or past-due rent
• Unsecured business debts

Note: Spokane County Courts typically do not discharge child support, most student loans, and recent tax obligations.

At the end of your Chapter 13 plan, the Spokane County Court judge reviews and discharges eligible debts. This means you will no longer be liable for the rest of the payments.

Qualifying for Chapter 13 bankruptcy involves meeting specific federal and state requirements, including debt limits, income qualifications, and residency rules. Here is how:

1. Meet The Debt Limits: Under federal law, your total debts must fall within certain thresholds:
1. Unsecured Debts: Must not exceed $465,275 (adjusted periodically)
2. Secured Debts: Must not exceed $1,395,875 (adjusted periodically)

If you do not meet these debt limits, you will have to explore other legal debt relief options.

1. Earn A Regular Income: You must demonstrate a regular and reliable source of income to fund your repayment plan. Your income can come from:
1. Employment
2. Self-employment
3. Pension payments
4. Social Security benefits

Chapter 13 is only for income earners, so if you do not have a stable income, you will have to explore other options.

1. Be A Resident Of Spokane: You must have lived in Washington for at least 91 days before filing to claim state exemptions under Title 11 and Washington state law.
2. Prior Bankruptcy Filings: If you've filed for bankruptcy before, there are restrictions. You cannot file Chapter 13 if you filed Chapter 7 bankruptcy within the past 4 years or had a Chapter 13 discharge within the past 2 years.
3. Attend Pre-Filing Credit Counseling: Within 180 days before filing, you have to attend a credit counseling course from a Washington state-approved agency, as required by Title 11.
4. No Recent Dismissals For Bad Faith: You cannot qualify if the courts dismissed a prior bankruptcy case within the past 180 days due to willful noncompliance or bad faith actions.

Qualifying for Chapter 13 bankruptcy is complex, requiring detailed financial disclosures and adherence to strict legal standards. Our Spokane Chapter 13 attorneys will guide you through the qualification process. Call us today to learn how.

Filing for Chapter 13 bankruptcy helps you regain control of your personal finances while keeping your assets. If you're considering this option, here's what you need to know about how the process works in Spokane—step by step.

Before filing for Chapter 13 bankruptcy in Spokane, you must complete a credit counseling course through a Washington state-approved agency, as stated in the United States Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). The BAPCPA prevents bankruptcy abuse, ensuring you've explored alternatives to bankruptcy, and prepares you for the process ahead.

Your Chapter 13 case begins when you file a bankruptcy petition with the U.S. Bankruptcy Court for the Eastern District of Washington, located right here in Spokane. Along with the petition, you'll submit detailed schedules of your income, expenses, debts, and assets. Washington law allows certain exemptions that may protect assets like your home or vehicle during the process.

Once you file your bankruptcy petition with the Spokane County Courts, you receive an automatic stay. This stops bill collectors from harassing you, garnishing wages, or pursuing foreclosure. The stay gives you the time to organize your repayment plan.

Your Chapter 13 repayment plan details how you'll make monthly payments over the next three to five years to a court-appointed trustee, who distributes the funds to your creditors based on the agreement. Your repayment plan must meet all legal requirements of Title 11 so it is fair and feasible based on your financial circumstances.

The 341(a) Meeting of Creditors is where you'll answer questions about your finances from the trustee and any creditors who attend. Don't worry—your attorney will guide you through this and make sure you're prepared.

The Spokane County Courts will then hold a hearing at the Thomas S. Foley U.S. Courthouse to confirm your repayment plan. The judge reviews the plan to make sure it meets the requirements of bankruptcy laws. Once approved, you'll begin making payments.

Over the bankruptcy period, you will make all scheduled payments on time. If ever you can't make a payment, talk with your attorney, and we'll help you request a modification or discharge, depending on your circumstances.

After completing your repayment plan, the court discharges any remaining eligible debts under Title 11, meaning you're no longer responsible for them. Then, the Chapter 13 bankruptcy process ends. However, the bankruptcy typically stays on your credit report for 7-10 years.

Chapter 13 can seem complicated, but you don't have to go through it alone. Our Spokane legal team handles bankruptcy cases just like yours in the Eastern District of Washington. Call us today for a free consultation, and let's work together to build a brighter financial future.

We love living in Spokane—it's a place that invites you to embrace the outdoors. On weekends, you'll find us hiking trails of Riverside State Park, taking in the views at Palisades Park, or paddleboarding along the Spokane River. When winter comes, you'll catch us skiing and snowshoeing on Mount Spokane.

Beyond the outdoors, we really enjoy Spokane's city life. We love strolling through Riverfront Park, especially during the holidays when the lights make it magical. Catching a concert at the Spokane Arena, exploring the shops and eateries in Kendall Yards, or savoring local brews at a downtown brewery are some of our favorite ways to spend a day. We also always enjoy the historic charm of Browne's Addition, the family-friendly events at Manito Park, and the buzzing energy of South Perry District, which reminds us daily why Spokane feels like home.

We understand that financial challenges can overshadow the joys of living here. But don't let debt hold you back from thoroughly enjoying all the city has to offer. Call the best bankruptcy attorneys in Spokane today for a free consultation, and let's work together to get you back on your feet.