Deciding whether you qualify for bankruptcy and if it’s the right choice for you are important questions. However, these questions are best discussed with an attorney. Jennie Patton can provide detailed answers during an initial consultation. In many cases, the answer is yes—most people can file for bankruptcy.

Whether you qualify for Chapter 7 or Chapter 13 bankruptcy depends on your unique situation. Only a few people might not be eligible for Chapter 7 bankruptcy, such as those who have filed a Chapter 7 bankruptcy in the past 8 years or those with high incomes. However, many who don’t qualify for Chapter 7 can still seek relief through Chapter 13 bankruptcy.

To understand the differences and find out what’s best for you, contact Jennie Patton’s office and schedule an initial consultation.

A Chapter 7 Bankruptcy can “wipe out” most unsecured debt. Examples of debts that can be discharged include credit card debt, medical bills, debts owed on repossessed or surrendered vehicles, and many payday loans. Even most debts in collection status can be discharged. On the other hand, there are some debts that cannot be “wiped out” in a Chapter 7 Bankruptcy. Non-dischargeable debts include most IRS taxes, student loans, and child support.

Chapter 7 Bankruptcy: Pros and Cons

What is Chapter 7 Bankruptcy?

Chapter 7 is the most common type of bankruptcy. It’s the quickest and often the least expensive way to deal with overwhelming debt. Many people qualify for Chapter 7, and it can “wipe out” credit card debt, medical bills, and debts from repossessed or surrendered vehicles. The biggest perk? It gives you a fresh financial start and ends the emotional stress of an impossible financial situation.

Disadvantages of Chapter 7 Bankruptcy

The downside is that it stays on your credit report for up to ten years. It will affect your credit score, but the negative impact will lessen over time.

Making the Decision to File Chapter 7 Bankruptcy

You should weigh the pros and cons based on your specific situation. While it should be a last resort, many people struggling with debt feel a huge sense of relief when they decide to file for bankruptcy.

Advantages of Chapter 13 Bankruptcy

A Chapter 13 bankruptcy stops creditors from collecting, giving you three to five years to catch up on payments. It lets you pay an affordable amount in an organized way. While in the plan, you are protected from garnishment, repossession, and foreclosure. Most importantly, stressful calls from collectors stop.

Disadvantages of Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy can hurt your credit. Also, you need court permission to take on new debts, like buying a car or refinancing a home, while in the plan.

Weighing the Pros and Cons

For many, the benefits of Chapter 13 bankruptcy outweigh the downsides. It helps protect your home, vehicles, retirement savings, and other assets while you manage your financial problems. Having a plan to repay your debts can bring peace of mind.

Working with an Attorney

An experienced bankruptcy attorney can help you create a repayment plan that the court will accept. Jennie Patton will list all your assets and debts and show how each debt may be handled by the Trustee. While in Chapter 13 bankruptcy, you are protected from all collection activities, giving you time to solve your financial problems.

Everyone who files must complete a pre-filing credit counseling course, and a post-filing financial management course. These courses were added as a requirement when Federal bankruptcy law changed in October 2005. These counseling requirements are easy to fulfill by either online or by telephone and must be completed before filing bankruptcy.

To meet this requirement, you will need to complete both courses from a court-approved vendor. If you work with Jennie Patton, she will refer you to our approved course vendor. Before taking any course, it is best to speak with an attorney, as he or she often will have advice on the most commonly used courses and may have arrangements in place to cover payment for the courses.

There were sweeping changes to Federal Bankruptcy Law in 2005. The addition of the credit counseling and debtor education courses as a requirement for filing were not the only changes that were enacted in 2005. However, most people filing now will find that the current laws will not significantly affect the outcome of their case. Most people will be able to obtain the same results today that they could have received prior to the law changes made in 2005.

Additionally, today there are more possible errors or “traps” that people filing bankruptcy must avoid. Missing a deadline, not fulfilling a legal requirement, failing to submit documents on time, dishonesty or omissions can result in case dismissal. Knowing the law and staying up to date on changes to Federal and State Bankruptcy Laws is crucial to proper filing of your bankruptcy case. Seeking advice from a qualified Bankruptcy Attorney is the only way to ensure that your petition and documents are filed accurately without missing any deadlines.

If you are ready to file for bankruptcy, contact a qualified legal professional to help you navigate through the process and alleviate the complexity of the process.

Everyone can obtain a free copy of their credit report from each of the three credit bureaus once per year. Go to AnnualCreditReport.com to obtain your free copies.

This website will ask for your personal information. First, choose which report you want: Experian, Equifax, or TransUnion. You’ll be directed to that credit bureau’s site and asked a few questions to verify your identity. These questions are based on your credit report. If you answer correctly, you’ll be able to view and print your report. You can skip any extra services, like getting your credit score, which costs money. The credit reports themselves are free.

Friendly Credit Report Tips:

• Have Your Info Ready: Before you start, gather your personal information, like your Social Security number and past addresses. This will make the process smoother.
• Take Notes: Jot down any questions you’re asked and your answers. This can help if you need to verify your identity again.
• Skip the Extras: Remember, you don’t need to pay for your credit score. The free report is what you need to check for errors.

Once you have your first report, come back and repeat the process with another credit bureau. If you get stuck and can’t get a report from one bureau, try another. If you don’t have internet access, you can call toll-free at 1-877-332-8228, and your reports will be mailed to you.

More Friendly Tips:

• Check Annually: It’s a good idea to review all three of your credit reports every year. Set a reminder on your calendar so you don’t forget.
• Look for Errors: If you find any mistakes, there are links to help you correct them. Fixing errors can improve your credit score.
• Stay Organized: Keep a folder with your credit reports and any notes about corrections you’ve made. This will help you stay on top of your credit health.

Upon annual review, if you catch errors on your reports, the website has links to correction procedures. Staying on top  of what’s in your credit report will help you know how to maintain your financial well-being.

The best way to protect your home and other assets is to have a steady income and make all your payments on time. It’s also important to have some savings and full insurance to cover unexpected problems. But let’s be real—life doesn’t always go as planned. We’re human, and sometimes, despite our best efforts, things go wrong. If you’re drowning in debt and feel like you’re sinking no matter what you do, filing for bankruptcy might be a good option to consider.

Don’t worry, you’re not alone in this. A big concern for most people is protecting their home and the things they’ve worked hard for. The good news is that most bankruptcy cases allow you to keep everything you own. Remember, there’s always a way forward, and taking this step can help you regain control of your financial future.

Bankruptcy laws aren’t designed to take away everything you own. By claiming exemptions, you can protect certain assets and keep them safe during bankruptcy. Exemptions work differently in Chapter 7 and Chapter 13 bankruptcy. They exclude the value of your property from your available assets, protecting it from being sold to pay off your debt.

Working with a knowledgeable attorney like Jennie Patton can help you plan the exemptions you need to protect your property. Whether you file for Chapter 7 or Chapter 13 bankruptcy will depend on the type and value of the assets you want to protect.

There are limits to the amounts that can be exempted based on state and federal bankruptcy laws, so it’s best to discuss these options with an attorney.

With proper planning, most people can exempt most, if not all, of their assets when filing for bankruptcy. It’s important to be honest about the property you own. Chances are, you’ll be able to protect all of it. Hiding real estate or other assets is considered fraud and has serious consequences. Contact a qualified professional to discuss how you can protect your property during bankruptcy. Jennie Patton’s attention to detail will help ensure your assets are protected. Most people who file with Ms. Patton keep everything they own.

In Washington State residential foreclosure is a two-step process. When your mortgage becomes past due you are likely to receive a Notice of Default which requires you to catch up on your mortgage payments within 30 days. If you are unable to bring the mortgage current within 30 days, then a Notice of Foreclosure is served on you. This second step sets an auction date for the sale of the home in 90 days. Once the foreclosure process has started, the mortgage company will not accept partial payment, and the past due amount (which grows each month), plus fees and costs, must be paid in full prior to the sale date in order to save your home.

Mortgage companies are required by law to consider loan modifications and offer workout plans, but many people’s applications are ultimately denied, or the required payments are not financially feasible. In addition, refinancing or selling a home is difficult to complete while foreclosure is pending.

Fortunately, filing for a Chapter 13 Bankruptcy enacts an automatic stay and provides complete protection from foreclosure proceedings and other collection actions. The automatic stay helps you save your home and protect other assets. If you are facing foreclosure, you should contact a knowledgeable and experienced bankruptcy attorney such as Jennie Patton to learn more about the process. Do not delay, contact our office to schedule your initial consultation.

Federal bankruptcy laws are complicated and unfamiliar to most people. Few attorneys are knowledgeable about bankruptcy law. Be sure and choose an experienced consumer bankruptcy attorney who will spend time with you to learn about your particular financial situation and then explain to you whether and how a bankruptcy could work for you. A good attorney will not only thoroughly explain the bankruptcy process but will also tell you exactly how each debt you have will be treated; let you know whether everything you own will be protected; and answer all of your questions. Working with an experienced consumer bankruptcy attorney will help you steer clear of potentially negative outcomes. Picking an attorney whom you trust and feel comfortable working with will ensure the best possible results and provide you with peace of mind. Jennie Patton will help guide you through the process of filing bankruptcy. She will take the time to answer all of your questions. With Ms. Patton you can rest assured that everything will be filed accurately and on time.