What are the main types of bankruptcy? Am I eligible to file? Will I get to keep my home? Can I halt a foreclosure? If you are considering bankruptcy or dealing with the threat of foreclosure, the best way to answer any questions that you might have is to speak with us. We have also provided some answers here to commonly asked questions that you may find helpful.

What are the main types of bankruptcy?

The primary kinds of bankruptcy available to individuals are:

  • Chapter 7, or straight bankruptcy, which allows you to sell (that is, liquidate) assets to pay creditors before the remainder of your dischargeable debt is erased;

  • Chapter 13, or reorganization, which allows you to restructure payments to creditors in a reasonable way over a three to five year period, after which time any remaining dischargeable debt is erased;

  • Chapter 11, which is similar to Chapter 13 except it is utilized by those whose debt is too high for them to qualify for it.

A skilled Washington State bankruptcy lawyer can help you decide which type of bankruptcy, if any, is the ideal solution to your financial issues.

Am I eligible to file for bankruptcy?

The short answer is yes. If your income too high to meet the criteria necessary for filing for Chapter 7 liquidation, you can usually file for Chapter 13 reorganization. If your debt is too high to qualify for Chapter 13, you can always file for Chapter 11 reorganization.

How can filing for bankruptcy help me?

When you declare bankruptcy, most or all of your debt can be wiped out, or discharged. Bankruptcy stops any existing garnishments and prevents creditors from contacting you. You can also use bankruptcy to erase debt associated with utilities (and to restore service if it has been interrupted). If creditors are fraudulently attempting to collect debt you do not owe, you can challenge these claims. Finally, declaring bankruptcy can help you keep your home and your vehicle. 

I’ve been notified that my lender is going to foreclose on my home. Will declaring bankruptcy prevent this from happening?

If you are facing an imminent foreclosure on a home in the State of Washington, declaring bankruptcy will immediately halt the foreclosure process until your filing is complete.

Will I get to keep my home after declaring bankruptcy?

If you are current with your payments, you may be able to keep your home if you are filing for Chapter 7 liquidation. If you are behind on your payments but could get caught up with them under the terms of a Chapter 13 or Chapter 11 reorganization, you will probably be able to keep your home as well. Additionally, creditors are often willing to allow loan modifications on mortgages following a declaration of Chapter 13 or Chapter 11. As a dedicated Washington bankruptcy attorney, I can explain  how filing for bankruptcy can help you keep your house in our initial consultation.

Call The Law Offices of John A. Long at (425) 427-9660 to speak with a friendly but aggressive real estate law attorney and foreclosure defense lawyer.

The Law Offices of John A. Long