Everett Chapter 13 Bankruptcy Attorneys

Save your home.  Stop your foreclosure sale.

Wipe out your debts.

The basics of a Chapter 13 bankruptcy.

There are many  benefits to pursuing this path.  But it is important to understand your options.  Our Everett bankruptcy lawyers can help you to understand not only your options, but also your legal rights.  If you are hoping to save your house from foreclosure while wiping out most or all of unsecured debts, this may indeed be your best option.  If nothing else, it will give you some breathing room.

If you are like many of our clients, you are barely hanging on financially.  You are struggling every month, especially to pay your mortgage and just cover the necessities.  This route accomplishes several things simultaneously/  First, it keeps your home from being repossessed.  Second, it gives you some breathing room because you will not be required to pay your unsecured creditors directly.  You just have to make your plan payment every month, which will free up much needed cash flow every month.

A Chapter 13 bankruptcy involves a three to five year repayment plan.  It can accomplish more than a Chapter 7 in some situations but it is a much more difficult process.  If your household makes over the median income for its size, you may have to file a five year Chapter 13 plan.  Above median income households are subjected to a “means test” in bankruptcy, which uses a formula to determine your ability to pay at least some of your debt.  Our Everett Chapter 13 bankruptcy attorneys can help you determine if a Chapter 13 is right for you.

Even if you don’t have to file a Chapter 13 because of your income, you may want to file a Chapter 13 case in certain circumstances.  A Chapter 13 can stop a foreclosure or a repossession and let you get caught up over time.  It can take care of tax debt and restore drivers licenses that have been suspended for tickets.  It can discharge debts you were ordered to pay in a divorce.  It can also protect property that could be taken and sold in a Chapter 7.  Our Everett Chapter 13 bankruptcy lawyers can help you determine what property can be protected in a Chapter 13.

How much will my payment be every month?

The amount of your monthly payment is determined by your income, the amount of debt you have to pay and the amount of property that could be taken in a Chapter 7.  The plan is a formula for paying debt back, with debt like back mortgage payments being paid first, then debts like back child support or taxes and finally unsecured debt, which could receive nothing if there is not enough money in the plan to pay them.  Putting together a Chapter 13 plan is complex and most people who try it themselves fail.

This is because putting together a plan that will be accepted by the trustee is very complicated and must be based on facts such as your true income and accurate representation of your debts.  It must also take into account a number of other factors that must be properly detailed in your petition.  Our Everett Chapter 13 bankruptcy attorneys are experienced at putting together plans that are accepted by our local trustees.

We know what the trustees are looking for and how to properly present your case in your initial petition.  We file hundreds of Washington State petitions every year.  We know the law.  We know the local bankruptcy courts. 

Call now to learn more about your options.

(425) 953-4364

How can you stop my Snohomish County home's foreclosure sale?

Before filing a Chapter 13, you must take a two hour credit counseling class on line or over the phone.  You have to take a debtors education class after you file.  The case stars when you file a petition, other documents and a plan with the bankruptcy court.  As soon as you file, all bill collecting stops – that includes foreclosure, repossessions, collection calls, license suspensions, utility cut off, etc.  You can stop a foreclosure up to the time the property is sold at auction.  Our Snohomish County Chapter 13 bankruptcy attorneys are very experienced at stopping foreclosure sales dead in their tracks.

A trustee is appointed to your case.  You have a hearing with the trustee called a “meeting of creditors”.  The trustee swears you in and asks you questions about your case under oath.  The trustee can make recommendations about your plan but the final decision is made by a bankruptcy judge.  Of course, your attorney helps you through the whole process.  The final step is when your case is confirmed by the bankruptcy judge.  Throughout the process, you make payments to the trustee who disburses money to your creditors according to the plan. 

After you complete your plan, you get a discharge.  As in a Chapter 7, the Chapter 13 discharge prohibits creditors from every trying to collect from you again.  Any debt that you don’t pay back in a Chapter 13 is discharged.  If a creditor doesn’t file a claim with the bankruptcy court in time, the debt is discharged as long as it was listed on your bankruptcy forms.  A Chapter 13 discharge is a little broader than a Chapter 7 and you can remove second mortgages in a Chapter 13 if the value of your home is less than the amount owed on the first mortgage.

Is filing the right decision for me and my family?

Should I file now or continue to struggle and hang on?  At the end of the day, only you, or only you and your spouse can answer this question.  In our experience, however, most people are better off biting the bullet and filing.  This enables them to get a fresh start financially and move on with their lives.  It also frees up immediate monthly cash flow for necessities.

In today's economy, we are seeing more and more hard working people who have fallen on extremely difficult financial times, frequently through no fault of their own.  Whether through an unforeseen medical issue, divorce, loss of employment, or the unscrupulous tactics of the credit card industry, more and more honest people are struggling just to pay their bills every month.

This is not the best path for everyone.  If you are looking to save your home from foreclosure, however, and you want to wipe out your unsecured debts, this may very well be your best option.

(425) 953-4364