The Economist recently reported that about 1 million Americans filed for bankruptcy in the previous year. Bankruptcy proceedings filed by individuals may fall under Chapter 7 or 13, depending on the circumstances of the petitioner. Chapter 7 petitions generally provide qualified debtors with a fresh start by wiping out most debt. However, the current application of the means test can make it more difficult for people to meet the requirements of Chapter 7 bankruptcy. If that applies to you, you can still get relief from your debts by filing a Washington Chapter 13 bankruptcy, which offers an alternative path to managing your financial challenges.

A Chapter 13 bankruptcy which offers a different kind of debt relief by shielding you against creditor lawsuits through a payment plan that is mostly based on what you can afford to pay.

Understanding Chapter 13 Bankruptcy

Chapter 13 petition can reorganize your debt, adjust a personal property loan’s high interest rate to a lower one, and stop the accumulation of interest and penalties on unpaid taxes. Ideal candidates for Chapter 13 are those who may have the means to pay off a reasonable portion of their obligations, such as previously unemployed or laid off workers who recently rejoined the work force, and employed individuals who struggle with high medical expenses.

Benefits of Chapter 13

  • Protection against the legal action of creditors
  • Shield against garnishment of wages and salaries
  • Protection against repossession of properties such as your home or car
  • Protection against garnishment of bank accounts
  • Extension of debt payment period usually between 3 to 5 years
  • Extinguishment of remaining debt after the expiration of the payment period

Many people incur debt when their cash flow is insufficient to meet expenses.  This is usually the case when a family member loses a job, suffers injuries in an accident, or becomes sick and requires extensive treatment. Filing Chapter 13 bankruptcy can help you reorganize your debts so that you can pay them off gradually.

Why You Need a Washington Chapter 13 Bankruptcy Attorney

The rules surrounding Chapter 13 bankruptcy are complicated and courts are often strict regarding the forms required for it. We can help you prepare and file the appropriate forms with the court and explain the meaning of resulting court orders affecting your obligations.

In Vancouver, Washington, the Law Office of Erin Bradley McAleer has earned the Avvo Superb Rating of 10.0 and the Mr. McAleer was awarded the National Trial Lawyers recognition as one of the top 40 attorneys under 40 in Washington.

We invite you to call us today at (360) 334-6277 to learn more about how Chapter 13 can buy you enough time to straighten your finances and settle your debts.  All initial consultations are free.