Chapter 7 Bankruptcy

In a Washington Chapter 7 bankruptcy, most debts are completely eliminated or “discharged.” Washington Chapter 7 bankruptcy allows you to discharge medical bills, credit cards, judgments from accidents, personal loans, or other unsecured loans. If your debts are discharged in a Washington Chapter 7 bankruptcy, your creditors are forever prevented from making any effort to collect the debt.

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Credit Counseling

Washington bankruptcy law also requires debtors facing bankruptcy to take a financial management course prior to having any debts discharged. This course is similar to Washington credit counseling, but it focuses more on giving you the financial skills to make sure you stay on a path to financial recovery.

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Dischargeable Debts

The United States Bankruptcy Code states generally that debts of individuals can be discharged and then lists some exceptions to this general rule. If a debt is discharged, that means that the creditor can not take any further action to collect the debt in the future. Many debts can be discharged through Washington Bankruptcy.

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Bankruptcy Exemptions

Residents of the State of Washington are fortunate because they may choose either the Federal Exemptions, or the State of Washington Exemptions, depending on which is more advantageous. Generally speaking, the Federal Exemptions are more generous to the consumer than the State exemptions, with the exception of the Washington State bankruptcy homestead exemption, which is now $125,000, as opposed to the Federal Exemption, which is $40,000 for a married couple. Washington bankruptcy exemptions for “tools of the trade” are more generous than the federal exemptions.

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