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Do you need to find answers to some pressing legal questions? Call Broadway Law Group in Seattle, WA. We can help you gain a deeper understanding of legal concerns like those involving civil litigation and bankruptcy.

Frequently Asked Questions

Chapter 7 bankruptcy is sometimes called a straight bankruptcy or a liquidation proceeding. The number one goal in an individual’s Chapter 7 case is to get a fresh financial start by discharging debt. There is no repayment plan. In the vast majority of cases the debtors can protect and keep whatever property they own, and the whole process take approximately four months from beginning to end. Although the Chapter 7 discharge discharges debt, it does not get rid of consensual liens against property such as with a home mortgage loan or auto loan, so if you want to keep the property secured by the loan, generally you will need to keep the loan. There are also certain types of debts that are given a special status and are not dischargeable in a Chapter 7. The main “special status” debts that are not subject to the Chapter 7 discharge are child support obligations, most student loans, and certain tax debt.
Yes, they will. By federal law, all actions against a debtor must cease once a bankruptcy petition is filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments. In fact, garnished funds being held by an employer at the time of filing must be returned, and repossessed cars which have not been re-sold at the time of filing must be returned.
n a Chapter 7 bankruptcy, the goal is to give people a fresh financial start, and if you were to lose all your property in a Chapter 7 it would be very hard to get a meaningful fresh start. Consequently, you are allowed to protect a lot of property in a Chapter 7 and the vast majority of people who file are able to keep all of their property. But there is a limit on how much you can keep. For persons who may be close to or over the limit, working with a competent, experienced bankruptcy lawyer is critical to keeping the maximum amount of property without running afoul of the bankruptcy process.

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Washington’s homestead exemption does not apply to real property located outside of Washington, according to the Washington Supreme Court, responding to a question certified to it by the U.S. Bankruptcy Court for the Western District of Washington. In the Matter of Wieber, 2015 WL 1510453, April 2, 2015.
Above median income Chapter 13 debtors must propose 60 month plans even if they have no disposable income, the 9th Circuit Court of Appeals ruled in Danielson, Trustee vs. Flores, 2013 WL 4566428 (9th Cir. 8/29/13).The decision overules that portion of In RE Kagenveama, 541 F. 3d 868 (9th Cir. 2008) holding that section 1325(b)(1)(B) does not inpose a minimum duration for a Chapter 13 Bankruptcy Plan if the debtor has no “projected disposable income.”
Good faith does not require meaningless participation in an income contingent repayment plan. Reviewing the bankruptcy court’s decision de novo, the 9th Circuit Bankruptcy Appellate Panel ruled that the debtor had made a good faith effort to repay her student loans, and remanded the matter to the bankruptcy court to enter an order discharging the loans. Roth v. Educational Credit Management Corp., 2013 WL 1623839 (Bankr. 9th Cir. 4/16/13). The decision marks a current trend of loosening standards for discharging student loans.