Seattle Chapter 13

A Seattle Chapter 13 bankruptcy is unlike any other type of bankruptcy.  It is not an involuntary bankruptcy, in which a debtor can be forced to file by creditors.  Instead, under a Chapter 13 bankruptcy, the debtor adopts a plan to repay each loan over a three to five year period, and creditors must accept repayment under this plan.  Within 30 to 45 days after the start of the bankruptcy case, the debtor must begin repayment. 

Although creditors are generally paid less than they are owed under the plan, they may be willing to adhere to it because it results in at least partial payment of their monies.

Personal Bankruptcy in Seattle

Chapter 13 bankruptcy is not right for everyone.  For instance, those who are jobless or without other means of support may be better off filing for Seattle Chapter 7 bankruptcy or Chapter 11.  Chapter 13 in Seattle is more appropriate for those who have a steady income, but still need assistance repaying their debts.  In order to file under this chapter, there are limits to the amount of secured and unsecured debts of the filer, although these limits are subject to an annual cost of living increase. 

Advantages of filing for Chapter 13

The advantages of filing for Chapter 13 include the following:

• Prevents home foreclosure
• Discharges certain types of debt
• Prevents collection against non-filing co-debtors

Disadvantages of filing for Chapter 13

The disadvantages of filing for Chapter 13 include the following:

• Must repay debts over three to five years
• Bankruptcy stays on your credit report for up to ten years
• Difficulty obtaining new credit

Seek an experienced Seattle Chapter 13 bankruptcy attorney

When for filing personal or business bankruptcy, you need a Seattle Chapter 13 attorney who will work patiently and tirelessly to craft a plan that benefits you both today and in the future.  At Carrington Law, P.C., we know how closely finances are tied to your quality of life.  With over 40 years of combined experience, we can provide a bankruptcy lawyer who cares about that quality as much as you do.  To schedule a consultation to discuss Chapter 7, Chapter 11 or Chapter 13 bankruptcy in Seattle contact Carrington Law, P.C. today.