Seattle &
Western Washington Area Lawyer
Bankruptcy
and Criminal Defense Law
Bankruptcy
and Criminal Defense Law
Make the Right Move ... Call an Experienced Attorney for Help
1 - Do I owe enough money to file for bankruptcy?
There isn't a minimum amount of money you need to owe before filing for bankruptcy. For each person the need is going to be different. Your debt to income ratio, pressure from creditors, type of debt, what assets you have, the stage of you life and your history can all be factors. Bankruptcy is such a serious and personal decision that each case needs to be separately evaluated.
2 - Will I lose everything if I file bankruptcy? (Or will I lose my car, house, boat, anything, etc...)
The purpose of filing bankruptcy is not just to get rid of your debt. Bankruptcy is supposed to get you back on the right financial track. Generally you have personal exemptions that allow you to keep your basic personal possessions such as clothes, furniture, appliances and other household items. The exemptions vary by state and some states are more generous then others. Usually there are also allowances that let you keep your car, house, jewelry and even cash. To protect as many of your assets as possible you should start discussing your situation with your attorney as soon as you start having financial problems.
3 - Can I really keep my car, house, boat, etc. if I still owe money on it.
You should be in a better position to pay for your secured items after filing for bankruptcy then you were before. After filing you no longer owe on all of your unsecured debt. That money is now available to pay for you necessary living expenses which may include your car and house. To consider keeping the secured items you need to be sure that you can afford to pay them, you need to be current on your payments and the items need to be reasonable. Items that are consider luxury items are often not allowed to be kept but what constitutes a luxury item varies a lot by jurisdiction.
4 - Does my spouse need to file bankruptcy with me?
No. There isn't a requirement that spouses both need to file but some jurisdictions make it feel like there is. There are actually some situations where the spouses can't file together. Because this varies so much by jurisdiction and also with your situation you really need to get the advice of a local attorney.
5 - Who will find out if I file for bankruptcy? Is this going to be printed in the newspaper?
Bankruptcy filings are public records. This means that almost anyone can find out the details in most cases. Cases can be looked up online through the courts website, you can look them up at the courthouse or sometimes it is in the newspaper. Most people don't keep up on who's filed for bankruptcy. Just think about how many times you've looked up a bankruptcy filing, gone to the courthouse to pull records or searched through a paper usually only purchased by attorneys, lenders and some advertisers. Anyone can find out about the bankruptcy but unless it is a creditor or co-debtor they probably won't know unless you tell them.
6 - Can I get rid of student loans by filing for bankruptcy?
In most cases student loans are not dischargeable and you will need to pay for them even after filing for bankruptcy. There are exceptions like all situations but to get rid of a student loan you need to go through a special bankruptcy procedure and you must show that having to repay the student loans is an undue hardship. Actually wiping out your student loans is not common. Hopefully after you file for bankruptcy your situation is improved so that you will be able to afford to repay your loans.
7 - Is it immoral or unethical to file for bankruptcy?
This is a personal question that people struggle with all the time. Good people find it hard to not repay a debt after they committed to do so. Filing for bankruptcy does not make you a bad person and it isn't illegal. Sometimes bad things happen to good people and that is why bankruptcy laws are there. If you've lost your job, got divorced, had a medical issue or one of many other serious problems then you might be in financial trouble even though you didn't do anything irresponsible or intentionally wrong. Bankruptcy is there to let you correct your situation and then to get back to paying the bills you can afford.
You might feel real bad about filing bankruptcy on a bill like a credit card but is it really worth going without food, utilities, transportation, education for your kids or medical attention just because you did borrow the money? Don't risk your health, family or future just to pay a bill. Bankruptcy and defaults are a part of business and a risk that is adjusted for by businesses. Rules are in place to prevent abuse of the system but if you really need help then talk to an attorney about bankruptcy.
8 - Will I be able to buy a home or car ever again after filing for bankruptcy?
Yes you will have access to credit again but hopefully only if you can afford to repay the debt and act responsibly with it. When taking on debt after filing bankruptcy you should really make sure that it is something that you can afford so you don't get in to financial trouble again.
I've seen people get approved for new home loans right after filing for bankruptcy. Usually you need to wait a few years to rebuild your credit before becoming eligible for a lot of loans but there often are companies willing to take that risk again right away. In almost every case, about 1 - 2 weeks after filing for bankruptcy you start getting offers in the mail for pre-approved credit cards and car loans. They often aren't a good deal but the credit is there for those willing to pay for it.
Borrowing money and having access to credit again is often dependent on you ability to repay and your debt to income ratio. As mentioned before, because bankruptcy wipes out the majority of your debt it improves your debt to income ratio especially if you have a steady source of income. Having access to credit and your credit score are not the same thing. A bankruptcy may stay on your credit history for up to 10 years which will have some impact on your score. Lenders may use your score in determining if they should grant credit in the future and some may see the bankruptcy on your history and consider that negative history in making their decision about lending to you.
9 - What about renting after bankruptcy?
Again we are talking about you being able to afford the debt. I have noticed that many large apartment companies have polices not to rent to people that are in bankruptcy or that have a recent bankruptcy on their record. This varies by company but it seems the larger the organization the less flexible they are with the rules. It often seems that after filing for bankruptcy people have an easier time renting a home then an apartment. This may be because most homes are rented by a person that only has the one or just a few rentals compared to the big apartment complexes. The people renting out the homes are often able to look at the big picture and find out more about your current situation, decide if you can really afford the rent and not just exclude you automatically because of the bankruptcy history.
10 - How can I afford to pay for a bankruptcy when I can't pay for my bills?
This is a very logical question and one that we see a lot of. If you are having financial problems then give us a call and talk about your situation. We offer a free initial consultation to potential clients in our area so that we can find out if bankruptcy is a good option to consider. We can also help with ideas for prioritizing your debts and we have payment plans available in some cases. Just contact an attorney and get started on the path to recovery.
These FAQs are generalizations and might not be the same for your situation. We believe every case is different though many have similarities. Please contact us right away to get advice specific to your case.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
We assist clients living in the western side of Washington. In most cases we can come to you. We have and will continue to serve clients in most cities including Seattle, Bellevue, Lake Washington, Sammamish, Newcastle, Issaquah, Ames Lake, Carnation, Fall City, Snoqualmie, North Bend, Mirrmont, Hobart, Maple Heights, Kangley, Ravensdale, Black Diamond, Lea Hill, Covington, Auburn, Algona, Lakeland South, Edgewood, Tacoma, Fife, Federal Way, Kent, Des Moines, O'Brien, East Hill, Meridian, Normandy Park, SeaTac, Burien, Bryn, White Center, Mercer Island, Clyde Hille, Medina, Yarrow Point, Yarrow Bay, Kirkland, Redmond, Union Hill, Novelty Hill, Inglewood, Woodinville, Duval, Cottage Lake, Kenmore, Bothell, Shoreline, Woodway, Mountlake Terrace, Brier, Edmonds, Lynnwood, Perrinville, Alderwood, Manor, North Creek, Matitby, Cathcart, Monroe, Woods Creek, Sultan, Goldbar, Silver Firs, Snohomish, Three Lakes, Mukilteo, Everett, Lake Stevens, Tulalip, Marysville, Smokey Point, Arlington, Silvana, Warm Beach, Starwood, Skagit City, Mt Vernon, Burlington, Alger, Lyman, Hamilton, Edison, Acme, Geneva, Bellingham, Marietta, Ferndale, Custer, Blaine, Lynden, Everson, Deming, Maple Falls, Orcas Island, Lopez Island, Anacortes, Oak Harbor, Friday Harbor, San Juan Island, Fort Casey, Keystone, Freeland, Whidbey Island, Clinton, Langley, Camano Island, Port Townsend, Port Hadlock - Irondale, Marrowstone, Port Ludlow, Sequim, Carlsborg, Port Angeles, Blyn, Bell Hill, Forks, La Push, Ocean Shores, Ocean City, Hoquiam, Aberdeen, Elma, Montesano, Raymond, Tokeland, Grayland, Humptulips, Neilton, Brady, Satsop, McCleary, Malon-Porter, Oakville, Rochester, Grand Mound, Centralia, Tumwater, Olympia, Lacey, Shelton, Dupont, Fort Lewis, Rainier, Tenino, Bucoda, Fords Prairie, Lakewood, Parkland, Spanaway, Elk Plain, Graham, Orting, Bonney Lake, Eatonville, Napavine, Winlock, Vader, Toledo, Mossyrock, Morton, Castle Rock, Kelso, Longview, Kalama, Woodland, Ridgefield, Vancouver, Scappose, Felida, Walnut Grove, Five Corners, Ordhards, Camas, Mill Plain, Brush, Meadow Glade, Lewisville, Amboy, Yacolt, Enumclaw, Greenwater, Easton, Cle Elum, Bristol, Thorp, Ellensburg, Kittas, Leavenworth, Cashmere, Sunnyslope, Wenatchee, George, Yakima, Naches, Gleed, Union Gap, Moxee, Wapato, Royal City. This includes counties for King, Snohomish, Skagit, Whatcom, San Juan, Island, Kitsap, Clallam, Jefferson, Gray's Harbor, Pacific, Wahkiakum, Mason, Thurston, Lewis, Cowlitz, Clark, Skamania, Pierce, Chelan, Kittitas, Yakima, Clickitat.
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