Chapter 13 Bankruptcy2021-12-07T14:56:12-08:00

WHAT IS CHAPTER 13 BANKRUPTCY?

Chapter 13 bankruptcy is also referred to as ‘debt reorganization’, ‘debt consolidation’ or ‘debt restructuring.’ Chapter 13 may be the best option for debtors which sustainable income who want to save a house or car that has delinquent payments, or for debtors who have higher net worth. It is the second most used form of personal bankruptcy.

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WHAT IS CHAPTER 13 BANKRUPTCY?

Chapter 13 bankruptcy is also referred to as ‘debt reorganization’, ‘debt consolidation’ or ‘debt restructuring.’ Chapter 13 may be the best option for debtors which sustainable income who want to save a house or car that has delinquent payments, or for debtors who have higher net worth. It is the second most used form of personal bankruptcy.

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What About My debt?

Filing Chapter 7 bankruptcy is a good option when you have more debt than you can repay or too many creditors for debt settlement. Chapter 7 enables individuals to eliminate credit card debt, medical bills, judgments, personal loans and other types of debt for a fresh financial start. The principle advantage of filing Chapter 7 is it results in an often complete forgiveness of debt while protecting exempt assets.

How does Chapter 13 work?

One of the main benefits of filing Chapter 13 is that debts can be restructured into one manageable payment amount at a reduced interest rate. Filing Chapter 13 stops repossessions and foreclosures and can eliminate or reduce many types of debt including medical bills, taxes, credit cards and car loan debt. Chapter 13 bankruptcy usually provides three to five years to repay debt.” In the bullet points, please add one more that says, “People who need to get their licenses reinstated due to unpaid traffic tickets.

Who is Chapter 13 Bankruptcy Designed for?

  • Wage earners with assets and home equity not protected by Chapter 7 bankruptcy
  • Homeowners who are behind on mortgage payments
  • Homeowners wanting protection from foreclosure
  • Wage earners dealing with garnishment of wages
  • Taxpayers who need time to repay taxes
  • People drowning in debt and/or facing rising interest rates
  • People who need to stop repossession of assets

Bankruptcy FAQs

Will a prospective employer know about my bankruptcy?2021-12-06T13:46:29-08:00

Potential employers, with your consent, may run a background check and be granted access to your credit report. Therefore, they will be able to see if you’ve filed a bankruptcy claim.

However, keep in mind that it is very unlikely that you will be denied a job because of your bankruptcy. There are state laws in effect to protect candidates from being discriminated against based on their financial standing.

How will bankruptcy affect my job or my ability to get work in the future?2021-12-06T13:45:44-08:00

Your current employer is not allowed to fire you, or demote you, due to bankruptcy. If they do, you are entitled to take legal action against them.

If you are currently searching for a job, it’s very unlikely that bankruptcy would prevent you from getting a position that you’re qualified for.

All government bodies are legally obligated not to deny you a job based on your filing of bankruptcy.

While private employers are not bound by this, they must provide a reason, also known as “just cause”, for why they decided not to hire you. This is to ensure no discriminatory practices are taking place.

How will bankruptcy affect my credit?2021-12-06T13:44:46-08:00

When you file your bankruptcy through Curtis, Casteel and Palmer, we automatically enroll you in a credit rebuilding program called 720 Credit Score.

There is no ‘exact’ number of points that your credit rating will fall when you file for bankruptcy. It’s influenced by several factors such as the type of bankruptcy filed, the amount of debt cleared during your bankruptcy proceeding, and what standing your accounts and credit report was in when you filed. On average, you can expect to see a drop in your credit score between 130 and 240 points.

Bankruptcy will remain on your credit report for 7-10 years, affecting your ability to open credit card accounts and get approved for loans with favorable rates unless you take steps to rebuild.

A chapter 7 bankruptcy will stay on your credit report for 10 years and a chapter 13 for seven years. As you begin a new history of paying your bills on time, your credit score will improve. The goal of 7 steps to a 720 credit score is to get your credit score to 720 within 2 years.

How long will the process of filing bankruptcy take?2021-12-06T13:41:08-08:00

It depends on how long it takes to collect all applicable documentation. The faster you get the necessary paperwork into us, the quicker we can file your case. We can usually file your case within one day after receiving all the documentation. Chapter 7’s usually take 3-4 months, while chapter 13’s usually last for 3-5 years.

What does it cost to file bankruptcy?2021-12-06T13:40:09-08:00

The cost of our bankruptcy services will vary depending on the nature and complexity of your case. The guidelines for pricing are as follows:

  • Chapter 7 bankruptcy: $700 – $2,000 (The average case is about $1,200 – $1,500)
  • Business bankruptcy: $1,500+
  • Chapter 13 bankruptcy: $4,000, as set by the court
I don’t think I can afford the attorney fees. What are my options?2021-12-06T21:07:24-08:00

Some cases are taken on a pro-bono basis based on your personal need and the complexity of your case. Start by filling out this form. A representative will reach out to discuss your options.

Am I eligible for a payment plan?2021-12-06T13:38:12-08:00

Yes. We only require a $100 down payment to get started for Chapter 7, $1,000 for Chapter 13, and the price for businesses vary. However, it should be noted that we can’t begin filing with the court until the full attorney fee is received.

Steve-Palmer-Lynnwood-Bankruptcy-Lawyer

HELPING GOOD PEOPLE START OVER

The highly experienced and compassionate bankruptcy attorneys in Lynnwood have helped hundreds of good people regain their financial footing and find their way through the bankruptcy process to financial freedom. If you’re considering bankruptcy alternatives or filing Chapter 13, call for a free bankruptcy and debt relief consultation today.

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Joshua Curtis - Attorney

Joshua Curtis

Robert Casteel - Attorney

Robert Casteel

Steve Palmer - Attorney

Steve Palmer

Bankruptcy Lawyer Serving Lynnwood & Snohomish County

Proudly serving the communities of Lynnwood, Edmonds, Everett, Mill Creek, Bothell, Shoreline, Brier, Mountlake Terrace, Kenmore, Woodinville, Lake Forest Park, Northgate, Seattle and all north King & Snohomish Counties.

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