Considering Filing Bankruptcy?
Chapter 7 Bankruptcy
If you are considering filing a Chapter 7 bankruptcy in Whatcom, Skagit, Snohomish, Clallam, Jefferson, Island or King County you need a Seattle Bankruptcy attorney.
Bankruptcy presents a complex set of Federal and state laws and choices. This is no time to choose an attorney who occasionally dabbles with Bankruptcy cases and doesn’t understand Washington bankruptcy law as it relates to liquidation, unsecured debt, secured debt, creditor harassment or discharges.
Bankruptcy lawyer David Kubat has for over 37 years helped thousands of clients through this stressful time and the maze of Bankruptcy laws and changes in bankruptcy laws.
Chapter 7 Bankruptcy, commonly known as “straight bankruptcy”, or “liquidation” is filed in a federal court. It involves the sale of your non-exempt assets by a trustee. Any proceeds obtained by the bankruptcy trustee are then turned over to creditors.
In a Chapter 7 bankruptcy most liens (such as real estate mortgages and security interests for car loans), are protected.
Chapter 7 bankruptcy allows you to keep certain exempt property. Washington is one of the few states that allows you to choose between state and federal bankruptcy exemptions. This means that you may examine both sets of exemptions and select the set that better protects your assets. Other assets, if any, are sold/liquidated to repay creditors. (Chapter 7 Common Washington Exemptions.
Many types of unsecured debt are legally discharged by the bankruptcy proceeding. There are, however, various types of debt that are not discharged in Chapter 7.
Common exceptions to discharge include:
- child support
- income taxes less than three years old
- property taxes
- student loans
- fines and restitution imposed by a court for any crimes committed by the debtor
- spousal support
- property settlements through divorce
Washington’s extensive list can be evaluated with Bankruptcy attorney David Kubat.
Whether dischargeable or not, all debts must be listed on bankruptcy schedules.
A chapter 7 bankruptcy stays on your credit report for 10 years from the date of filing the chapter 7 petition. This may make credit less available and/or terms less favorable, although high debt can have the same effect. The removal of actual debt from your record by the bankruptcy, however, tends to improve creditworthiness.
Call Law Office of David A. Kubat toll-free at 877-989-7061 to schedule a free consultation.
The Law Office of David A. Kubat is a debt relief agency. Attorney Kubat helps people file for bankruptcy relief under the Bankruptcy Code.