Other Filing Options
Chapter 11 Bankruptcy
Chapter 11 bankruptcy allows for the restructuring of assets and liabilities under court supervision, with the goal of achieving confirmation of a plan of reorganization. Chapter 11 is generally used to reorganize the assets and liabilities of a business, or an individual with substantial financial affairs.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also referred to as a “Wage Earner’s Plan,” allows time to bring past due payments on home loans and car loans, and avoid foreclosure or repossession while payments are made under a court approved plan. Chapter 13 can also be filed when individuals have too much disposable income under the “Means Test under Chapter 7.
Chapter 7 Bankruptcy Offers Immediate Protection
A Chapter 7 bankruptcy filing will immediately stop foreclosures, repossessions, wage garnishments, lawsuits and collections, and provide relief from all dischargeable debt.
Chapter 7 bankruptcy is often needed when:
- Total debt is more than can be paid within a reasonable time;
- Bill collectors are harassing for payment;
- Bills are running more than thirty days past due;
- There are high medical expenses that are not covered by insurance;
- Wages are being garnished;
- Property has been repossessed; or
- When foreclosure is pending.
Most often, a decision to file bankruptcy is made after sleepless nights, when financial stress has reached a breaking point, and relief is needed to restore peace of mind, obtain a fresh start, and move forward without overwhelming debt.
A Fresh Start
The bankruptcy law provides relief to individuals that have suffered financial misfortune, and seek a new opportunity in life with a fresh start and a clear field for future effort. Chapter 7 bankruptcy is intended to quickly eliminate all dischargeable debt, and allow individuals to begin rebuilding their finances as soon as possible. Our bankruptcy attorneys have provided Chapter 7 representation in Seattle, Spokane, and throughout Washington for over sixty-five years of combined experience, are we are devoted to providing representation to individuals that need a second chance through bankruptcy.
Your eligibility to file Chapter 7 bankruptcy depends on whether you have previously filed for bankruptcy within the last eight years, whether your debts are primarily consumer debts or business debts, and whether your average monthly income exceeds the median income for a household of your same size in the county. This sounds complicated, but it can be simplified. First, if you have previously filed for bankruptcy within the last eight years, you won’t be eligible to file Chapter 7 now, although you may be able to pay your debts under a Chapter 13 bankruptcy. Second, if your debts are primarily business debts, you are eligible to file Chapter 7. Third, if your average income is less than the median income for a household of your same size, you are eligible to file Chapter 7.
The Means Test
Finally, if your average income is more than the median income for a household of your same size, you will need to meet the “means test” to determine whether a Chapter 7 filing is presumed to be an abuse of the Bankruptcy Code. If you are unable to overcome the presumption, the case will need to be dismissed, or converted to a case under a Chapter 13 or Chapter 11. In most consumer cases, the means test is a hurdle, not a roadblock, to a Chapter 7 filing. Our bankruptcy lawyers can analyze your eligibility based on an initial interview, and recommend a course of action that will provide you with the most relief that is allowed by law.
We Can Help
The bankruptcy attorneys at Davidson Backman Medeiros represent individuals and businesses in all aspects of bankruptcy proceedings, as well as debt settlements and loan restructurings. Call (509) 624-4600 or email email@example.com for further information regarding a possible bankruptcy filing under Chapter 7.