There are a number of requirements for Chapter 7 bankruptcies that you need to focus on during the process. The law office of Kalkadora Thangkhiew has years of experience dealing with all forms and reporting requirements of the courts during your bankruptcy proceedings. Here are some things you need to know.
In a Chapter 7 bankruptcy you wipe out your debts. Chapter 7 bankruptcy is a liquidation where the trustee collects all of your assets and sells any assets which are not exempt. Here are some items deemed not exempt (but do check these with us as situations will vary):
- Real property or mobile home to $40,000 ( no limit if seeking to discharge debt based on failure to pay a state income tax assessed on retirement benefits received while a resident of Washington, 6.15.030) — law sections 6.13.010, 6.13.030
- Appliances, furniture, household goods & home yard equipment to $2700 total (no limit on any property located within Washington if seeking to discharge debt based on failure to pay a state income tax assessed on retirement benefits received while a resident of Washington, 6.15.025) — law section 6.15.010
- 1 motor vehicle for each individual to $2500 total (2 motor vehicles as community property of spouses two motor vehicles to $5000 total) — law section 6.15.010
- IRAs — law section 6.15.020
- There are many other items that may be covered including child support, unemployment compensation, some pensions, and health aids that could be applicable — our office can advise you on those.
It is also important to consider that the 2005 Bankruptcy Act requires all individual debtors who file for bankruptcy to receive credit counseling within six months before filing for bankruptcy relief. After your bankruptcy you will be required to complete a financial management instructional course. Many clients note that this helps them prepare well for their financial future after their bankruptcy is completed.
For Chapter 7 bankruptcy in Washington State there is a “means test” that looks at whether your monthly household income is less than the Washington median income for a household of your size. Passing this means test is a step toward being eligible to file a Chapter 7 bankruptcy.
Findlaw.com explains Chapter 7 bankruptcy criteria like this: “a debtor must qualify for Chapter 7 by meeting certain criteria. If the debtor fails to meet Chapter 7 requirements, a bankruptcy court can convert the case to a Chapter 13 bankruptcy.”
Do give us a call at (360) 571-8228, for a no obligation consultation. We look forward to guiding you through all these concerns as you move toward restoring your financial life.