If you’re considering filing bankruptcy in Spokane, WA, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Filing for bankruptcy is a complex legal process that allows individuals and businesses to seek relief from overwhelming debts. Qualifying for bankruptcy in Spokane, Washington, involves meeting specific criteria set forth in federal bankruptcy laws. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13, and the qualifications for each differ.

Chapter 7 Bankruptcy Eligibility:

Chapter 7 bankruptcy is often referred to as “liquidation” bankruptcy, as it involves selling non-exempt assets to pay off creditors and discharging the remaining eligible debts. To qualify for Chapter 7 bankruptcy in Spokane, you must meet certain criteria:

1. Means Test: The means test is a primary qualification factor for Chapter 7 bankruptcy. It is designed to determine whether your income is low enough to justify filing for Chapter 7 rather than Chapter 13. The means test compares your average monthly income over the past six months to the median income for a household of your size in Washington. If your income falls below the median, you generally qualify. If it’s above the median, you may still qualify if your disposable income, after allowable expenses, is insufficient to repay a significant portion of your debts.
2. Credit Counseling: Before filing for bankruptcy, you must complete a credit counseling course from an approved agency within 180 days. This course helps you explore alternatives to bankruptcy and assess your financial situation.
3. Previous Bankruptcies: There are time limits for filing consecutive Chapter 7 bankruptcies. You cannot file another Chapter 7 case if you received a discharge in a previous Chapter 7 case within the last eight years. However, you can still file for Chapter 13 bankruptcy in this situation.
4. Financial Management Course: After filing for Chapter 7 bankruptcy, you must complete a financial management course to receive your discharge.
5. Good Faith and Honesty: You must be honest in your bankruptcy filings and act in good faith throughout the process. Any attempt to hide assets, conceal income, or engage in fraudulent activities may result in your case being dismissed or your discharge being denied.

Chapter 13 Bankruptcy Eligibility:

Chapter 13 bankruptcy, often referred to as “reorganization” bankruptcy, allows you to create a repayment plan to gradually pay off your debts over a period of three to five years. To qualify for Chapter 13 bankruptcy in Spokane, you must meet the following criteria:

1. Regular Income: You must have a regular source of income to make the monthly payments required under your Chapter 13 repayment plan. This income can come from various sources, including employment, self-employment, Social Security, or other government benefits.
2. Debt Limitations: There are debt limitations for Chapter 13 bankruptcy. These limits are subject to change due to inflation adjustments.
3. Tax Returns and Filings: You must have filed your federal income tax returns for the previous four years before filing for Chapter 13 bankruptcy.
4. Credit Counseling: Similar to Chapter 7 bankruptcy, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
5. Good Faith and Honesty: Just like in Chapter 7, honesty and good faith are essential throughout the Chapter 13 bankruptcy process. Full disclosure of your financial situation and cooperation with the bankruptcy trustee are crucial.

It’s important to note that bankruptcy laws and regulations can change over time. Therefore, it’s advisable to consult with a qualified bankruptcy attorney in Spokane, WA, to get the most current and accurate information regarding your eligibility and the specific requirements for your unique financial situation. An attorney can also help you navigate the complex bankruptcy process, assess which chapter is most suitable for your needs, and guide you toward a fresh financial start.

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Do You Need a Lawyer to File For Bankruptcy in Spokane, WA?

Filing for bankruptcy in Spokane, Washington, is a legal process that can be complex and daunting. While it is possible to file for bankruptcy without an attorney, it is generally advisable to seek legal representation to ensure that your rights are protected, and the process goes smoothly.

Here are some important considerations regarding whether you need a lawyer to file for bankruptcy in Spokane, WA:

1. Understanding the Complexity of Bankruptcy Laws:

Bankruptcy laws in the United States, including those in Spokane, are intricate and subject to change. They involve federal and state regulations, court procedures, and specific requirements for each chapter of bankruptcy (Chapter 7 and Chapter 13). An experienced bankruptcy attorney has in-depth knowledge of these laws and can help you navigate the process effectively.

2. Assessing Your Eligibility:

Determining whether you qualify for bankruptcy and which chapter is suitable for your situation can be challenging. An attorney can evaluate your financial circumstances, income, assets, and debts to advise you on the best course of action. They can help you avoid common pitfalls, such as filing for the wrong chapter and risking a dismissal.

3. Preparing and Filing the Required Documents:

Bankruptcy involves extensive paperwork and documentation, including petitions, schedules, statements, and financial disclosures. An attorney can assist you in accurately preparing and filing these documents, ensuring that they comply with all legal requirements. This reduces the likelihood of mistakes or omissions that could delay your case or result in adverse outcomes.

4. Protection from Creditors:

Once you file for bankruptcy, an automatic stay is put in place, which prohibits creditors from pursuing collection actions against you. However, some creditors may attempt to challenge the stay. A bankruptcy lawyer can handle these challenges and protect your rights, preventing harassment and legal actions from creditors.

5. Maximizing Exemptions:

Bankruptcy exemptions determine which of your assets you can keep during the bankruptcy process. An attorney can help you understand the exemption laws in Washington and strategize to protect as much of your property as possible. Without legal guidance, you might inadvertently lose valuable assets that you could have otherwise retained.

6. Developing a Repayment Plan (Chapter 13):

If you file for Chapter 13 bankruptcy, you’ll need to create a repayment plan that outlines how you will repay your debts over a specified period. This plan must be approved by the bankruptcy court. An attorney can help you craft a feasible and acceptable plan that takes into account your income, expenses, and debt obligations.

7. Attending Court Hearings:

Bankruptcy cases typically involve court appearances and hearings. Your attorney can represent you at these proceedings, ensuring that your interests are protected and advocating on your behalf. They can also negotiate with creditors and the bankruptcy trustee to reach favorable resolutions.

8. Avoiding Mistakes and Pitfalls:

Bankruptcy is rife with potential pitfalls and legal traps. Making errors or failing to adhere to the strict rules and timelines can have serious consequences, including case dismissal or the denial of a discharge. An attorney’s expertise can help you avoid these pitfalls and increase the likelihood of a successful bankruptcy outcome.

9. Post-Bankruptcy Counseling:

After bankruptcy, you may need to complete financial management courses and meet other obligations to obtain a discharge. An attorney can guide you through these post-bankruptcy requirements, ensuring that you fulfill all necessary tasks to complete the process.

While it is possible to file for bankruptcy in Spokane, WA, without an attorney, the decision to do so should be made with careful consideration of the complexities involved. Hiring a knowledgeable bankruptcy attorney can significantly improve your chances of a successful bankruptcy case, protect your rights, and help you achieve the financial fresh start you seek. Ultimately, consulting with an attorney is a prudent step to take when contemplating bankruptcy, as they can provide tailored guidance based on your unique circumstances.

Cost to File Chapter 7 Bankruptcy in Spokane, WA

Filing for Chapter 7 bankruptcy in Spokane, Washington, involves several costs and fees, including court filing fees, mandatory credit counseling fees, and potential attorney fees if you choose to hire an attorney to assist with your case.

Here’s a breakdown of the costs associated with filing Chapter 7 bankruptcy in Spokane:

1. Court Filing Fees: The primary cost associated with filing Chapter 7 bankruptcy is the court filing fee, which is paid to the U.S. Bankruptcy Court for the Eastern District of Washington, where Spokane is located. This fee may change over time due to adjustments for inflation or other factors, so it’s essential to check the most current fee schedule on the court’s website or consult with an attorney.

2. Credit Counseling and Debtor Education Fees: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies. These courses typically come with associated fees, but they can vary depending on the agency you choose. The cost for these courses can range from $60 to $120 for each course, so you may need to budget approximately $130 to $250 in total for these mandatory educational requirements.

3. Attorney Fees (Optional): While it is possible to file for Chapter 7 bankruptcy without an attorney (pro se), many individuals choose to hire an experienced bankruptcy attorney to guide them through the process. Attorney fees can vary widely based on the complexity of your case, your location, and the attorney’s experience. In Spokane, attorney fees for Chapter 7 bankruptcy often range from $1,200 to $2,700 or more. It’s essential to discuss fees with potential attorneys and understand their pricing structure before retaining their services.

4. Miscellaneous Costs: In addition to the primary costs mentioned above, there may be other miscellaneous expenses associated with your bankruptcy case. These can include postage and mailing costs, fees for obtaining credit reports, and fees for obtaining required documents, such as copies of your credit reports or tax transcripts.

It’s important to note that if you cannot afford to pay the filing fee in full upfront, you may be eligible to request a waiver or installment plan from the bankruptcy court. However, you must meet specific criteria and complete the necessary forms to request such accommodations.

Cost to File Chapter 11 Bankruptcy in Spokane, WA

Filing for Chapter 11 bankruptcy in Spokane, Washington, can be a complex and expensive process, primarily intended for businesses, corporations, or high-income individuals with substantial assets and debts. The costs associated with Chapter 11 bankruptcy can vary significantly based on the complexity of the case and the specific circumstances. Here’s a breakdown of some of the key expenses you might encounter when filing for Chapter 11 bankruptcy in Spokane:

1. Attorney Fees: Hiring an experienced bankruptcy attorney is crucial when filing for Chapter 11, as this chapter involves intricate legal procedures and negotiations with creditors. Attorney fees for Chapter 11 cases can be substantial and typically vary depending on the complexity of your financial situation and the extent of legal work required. The fees may range from tens of thousands to hundreds of thousands of dollars or more. It’s essential to discuss fees with potential attorneys and agree on a fee structure before retaining their services.

2. Filing Fees: The filing fee for a Chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the Eastern District of Washington (which includes Spokane) may change over time due to inflation adjustments or other factors. It’s crucial to check the most current fee schedule on the court’s website or consult with an attorney.

3. U.S. Trustee Fees: In Chapter 11 cases, you may be required to pay quarterly fees to the U.S. Trustee’s office based on your gross quarterly income. These fees can add up over the course of your bankruptcy proceedings and vary depending on your income and financial activities.

4. Other Professional Fees: In addition to attorney fees, you may need to hire other professionals to assist with your Chapter 11 case, such as accountants, appraisers, financial advisors, and turnaround consultants. The costs for these services can also be substantial and will depend on the complexity of your case and the professionals’ rates.

5. Administrative Costs: Chapter 11 bankruptcy proceedings can involve administrative costs related to court-approved expenses, such as mailing notices, conducting meetings, and handling other necessary tasks during the bankruptcy process.

6. Debtor-in-Possession (DIP) Financing Costs: If your business requires financing to continue operations during the Chapter 11 process, you may incur costs associated with obtaining and servicing DIP loans. These costs can include interest, fees, and collateral requirements.

7. Creditors’ Committee Costs: In some cases, a committee of unsecured creditors may be appointed to represent the interests of creditors in the bankruptcy case. You may be responsible for covering the committee’s reasonable expenses.

Due to the substantial costs involved, individuals or businesses should also explore alternatives to Chapter 11, such as negotiation with creditors or exploring other chapters of bankruptcy, if applicable. Bankruptcy law can be intricate, and consulting with knowledgeable professionals in Spokane, WA, is critical to making informed decisions regarding your financial future.

Cost to File Chapter 13 Bankruptcy in Spokane, WA

Filing for Chapter 13 bankruptcy in Spokane, Washington, involves several costs and fees, including court filing fees, mandatory credit counseling fees, and potential attorney fees if you choose to hire an attorney to assist with your case. Here’s a breakdown of the costs associated with filing Chapter 13 bankruptcy in Spokane:

1. Court Filing Fees: The primary cost associated with filing Chapter 13 bankruptcy is the court filing fee, which is paid to the U.S. Bankruptcy Court for the Eastern District of Washington, where Spokane is located. The fee may change over time due to adjustments for inflation or other factors, so it’s essential to check the most current fee schedule on the court’s website or consult with an attorney.

2. Credit Counseling and Debtor Education Fees: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies. These courses typically come with associated fees, but they can vary depending on the agency you choose. The cost for these courses can range from $58 to $118 for each course.

3. Attorney Fees (Optional): While it is possible to file for Chapter 13 bankruptcy without an attorney (pro se), many individuals choose to hire an experienced bankruptcy attorney to guide them through the process. Attorney fees can vary widely based on the complexity of your case, your location, and the attorney’s experience. In Spokane, attorney fees for Chapter 13 bankruptcy often range from $2,450 to $4,500 or more, depending on the specific circumstances of your case. It’s essential to discuss fees with potential attorneys and understand their pricing structure before retaining their services.

4. Miscellaneous Costs: In addition to the primary costs mentioned above, there may be other miscellaneous expenses associated with your Chapter 13 bankruptcy case. These can include postage and mailing costs, fees for obtaining credit reports, and fees for obtaining required documents, such as copies of your credit reports or tax transcripts.

5. Plan Payments: In a Chapter 13 bankruptcy, you’ll be required to make monthly plan payments to the bankruptcy trustee. These payments are used to repay your creditors as outlined in your court-approved Chapter 13 repayment plan. The amount of these payments will depend on your income, expenses, and the terms of your plan.

Chapter 13 bankruptcy can provide individuals with a structured way to repay their debts over a period of three to five years while retaining their assets. If you’re considering Chapter 13 bankruptcy in Spokane, WA, it’s advisable to consult with a qualified bankruptcy attorney to assess your eligibility, understand the costs involved, and navigate the process effectively. An attorney can help you create a feasible repayment plan and ensure that your rights are protected throughout the bankruptcy proceedings.

Reliable Bankruptcy Attorneys in Spokane, WA

Below is a list of reputable bankruptcy attorneys in Spokane, WA. They can help you with both personal and business bankruptcy information.

Law Office of Jason Couey
1312 N Monroe St Suite 232, Spokane, WA 99201, United States

Wallace & Karson Law Office, PLLC
1618 W 2nd Ave suite a, Spokane, WA 99201, United States

Mc Bride Law Office: Elizabeth M. McBride (Lisa McBride)
28 W Indiana Ave, Spokane, WA 99205, United States

Davidson Backman Medeiros PLLC
601 W 1st Ave Suite 1400, Spokane, WA 99201, United States

Schwab Law
103 E Indiana Ave # A, Spokane, WA 99207, United States

Spokane, WA Zip Codes We Proudly Serve:

99026, 99201, 99202, 99203, 99204, 99205, 99207, 99208, 99212, 99217, 99218, 99223, 99224

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