The Law Office of Robert C. Hahn III

Bankruptcy is a legal process to help financially distressed individuals and businesses.

A Federal Court proceeding is filed to wipe out and/or restructure debt so that people and businesses can improve their financial situation. There are multiple types of Bankruptcy, but the most common types are Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, and Chapter 11 Bankruptcy.

The most common bankruptcy is Chapter 7 and it is the simplest and least expensive to file and quickest to rebuild your credit score. Chapter 13 is normally filed by higher-income individuals or to stop foreclosure, repay tax, or repay general unsecured debt at zero percent interest. Chapter 11 Bankruptcies are usually filed in more complex situations or by businesses seeking to restructure debt over time.

A bankruptcy lawyer near you can give you advice as to which bankruptcy is best for your situation and determine if you qualify. If you are looking for a Spokane Bankruptcy Lawyer, contact our office for a free consultation and we can make sure all your questions are answered.

When a person or business files bankruptcy they’re instantly protected from their creditors by the U.S. Bankruptcy Code and an automatic stay prevents creditors from taking any continued collection activities unless they ask permission from the Court. The Court generally does not give creditors permission to continue collections unless certain elements are met, they are very limited since the whole idea behind filing bankruptcy is to get relief from debts.

Thirty days after filing bankruptcy the debtor or person filing must attend a creditor’s meeting in which a bankruptcy trustee asks a set of questions and creditors can also ask questions, however, in most cases creditors do not attend the meeting. These meetings can be held in person or in some situations over the phone.

In any bankruptcy filed, phone calls from creditors, lawsuits, garnishment, and other collections will immediately stop. A Bankruptcy Attorney can explain more regarding what happens when you file. If you have questions that you need answered by a qualified bankruptcy attorney, feel free to contact us for a free consultation.

Most creditors will tell you that a Chapter 7 Bankruptcy will stay on your credit report for 10 years and a Chapter 13 Bankruptcy will stay on for 7 years. But I think it’s more important to focus on what a bankruptcy does for your future credit score and ability to rebuild your finances.

A person that files bankruptcy typically goes from a lot of debt to no debt within 90 days if they file a Chapter 7. That is a big deal. Most creditors would be willing to extend credit to a person with no debt or little debt rather than a person with a lot of debt.

Most people that file bankruptcy do so as a last resort because they have no other way to repay the debt and will likely be unable to pay it back in the future. If they didn’t file, then they would be subject to collections, lawsuits, wage garnishments, bank garnishments, and the debt appearing as unpaid on their credit report. Bankruptcy stops this cycle and wipes out the debt, showing that it’s discharged and no longer a legal obligation owed.

A person that files bankruptcy can go from a lot of debt they cannot pay to no debt very quickly. In this situation, the person who actually filed bankruptcy is in a better financial position to rebuild and have a stronger ability to pay new debt obligations on time. This person also stops the negative credit reporting and can start creating positive reporting to rebuild their credit score.

Most people that file bankruptcy can rebuild their score high enough to qualify for a home purchase within two years of filing bankruptcy. Most home lenders will also loan to people who filed for bankruptcy two years after the date they filed. Of course, they would have to meet all the other requirements that the lender has, but the prior bankruptcy filing should not be a limiting factor to buy a home.

To speak to a bankruptcy attorney in Spokane, Washington, contact us for a free consultation. We would be happy to make sure your questions are fully answered. To learn more about life after bankruptcy, check out the following articles.

• Life After Bankruptcy
• Buying a Home After Bankruptcy

Chapter 7 Bankruptcy is the most common and simplest form of all the types of bankruptcy. It’s usually filed by low to middle-income individuals or married couples to wipe out debts like credit cards, medical bills, collections and stop lawsuits or garnishments. In most cases to qualify, you must be able to show that your monthly living expenses equal to or exceed your monthly net income.

The whole bankruptcy process takes approximately 90 days to complete in a chapter 7. A person filing must disclose various financial information to the bankruptcy court and trustee by filling out a bankruptcy petition and schedules which are filed with the Clerk of the Bankruptcy Court to start the process. A person filing must be truthful, honest, and make full disclosure, many different financial questions are asked in the filing process. Once the case is complete a person or entity’s debts are wiped out or legally discharged if they are the type of debts that are dischargeable.

Some types of debts can survive the bankruptcy discharge and continue to be a legally binding debt. A lawyer can explain this in more detail if necessary. A person or business should always consult with an experienced bankruptcy attorney to have their particular facts looked at and be fully advised before filing a bankruptcy.

At first glance, filing bankruptcy may seem overwhelming.  But, when done with an experienced bankruptcy lawyer the process is actually pretty simple.  You hire the attorney to guide you, protect you, and file everything correctly so that the case goes smoothly. If you would like a free consultation for Chapter 7 Bankruptcy with a local Spokane Bankruptcy Attorney, reach out to us, we would be glad to help.

If you’d like to read more, check out the following two articles.

1. Understanding Chapter 7 Bankruptcy
2. 14 Steps to Filing Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy is a bankruptcy process that takes 3-5 years and changes the way you have to repay debts. This type of bankruptcy is much different than Chapter 7 and more involved but can offer distinct advantages. The most common reason people file Chapter 13 Bankruptcy is because they make too much money monthly to qualify for Chapter 7 Bankruptcy. If a person has disposable income or money left over after they pay their monthly living expenses each month then they don’t qualify for Chapter 7 but they could still file Chapter 13 and possibly pay their creditors much less than they would have had to otherwise.

Many people file chapter 13 because they can pay their unsecured debt back to creditors at 0% interest over the 3-5 year bankruptcy plan. For example, if you had $30,000.00 in credit card debt at 0% interest you could in a Chapter 13 and just pay that creditor $500.00 a month for 60 months and you would repay the debt. Outside of a bankruptcy, it would likely take much more money to repay the debt and the repayment timeframe would likely be much longer. But most people who file chapter 13 only are only required to pay part of their debts back, based on their income.

People also file chapter 13 to stop home foreclosure. When they file the bankruptcy before the house is sold then the foreclosure sale is stopped and the person can repay the home mortgage payment arrearages back to the creditor over the 3-5 year chapter 13 bankruptcy plan. Then when they exit the bankruptcy at the end of the plan they have brought the arrearages current and they just resume their normal monthly payment.

Chapter 13 bankruptcy is also commonly filed to repay high interest and high penalty rate tax debt. In a chapter 13 tax obligations can be paid back at 0% interest over the 3-5 year period and can stop continuing penalties. For people facing tax debt, this type of bankruptcy offers distinct advantages over other repayment options.

If you would like to know more about Chapter 13 Bankruptcy or how it would help your situation, as a local Spokane Bankruptcy Lawyer, we offer free consultations and would be glad to discuss your options. You can also read the following two articles

1. Understanding Chapter 13 Bankruptcy
2. 8 Steps to Filing Chapter 13 Bankruptcy

The first step of filing bankruptcy is to get experienced legal advice from a local bankruptcy attorney. You should be truthful and open in your discussions so you can get the very best analysis of your case. It is important that you understand exactly how the process works, what will be required of you, and what to expect as the result of filing bankruptcy.

In the beginning of a case, the bankruptcy attorney and their staff gather financial information from the person or business who is filing. This information can be gathered by completing forms online and emailing documents to the attorney. Information like paycheck stubs, tax returns, bank statements are also provided.

The information is put into the required bankruptcy form pleadings, the pleadings are reviewed and signed and then the case is filed with the bankruptcy court system. Once the case is filed, the person or business is protected by the bankruptcy code.

You can learn more about the bankruptcy process by reading our article The Bankruptcy Process. To make an appointment to get experienced advice, just reach out and we would be happy to provide you with a free consultation with a Spokane Bankruptcy Lawyer.

The costs to file bankruptcy varies depending on the attorney you use and the type of bankruptcy case you file.

Chapter 7 Bankruptcy

In our law office, we charge an average of $800.00-$1000.00 plus the court filing fee of $338.00. Therefore, chapter 7 in a standard case will usually cost under $1,350.00 to file. If you have more complex issues in your case that take additional time, or it’s a business filing, the fees are higher and are quoted based on the facts of the case.

In the Spokane area, bankruptcy attorney fees are generally very reasonable compared to the national average. Chapter 7 bankruptcy attorney fees vary and are often updated from law office to law office. Some attorneys charge as low as $800.00 and others as high as $2,000.00.  Some out-of-state law firms also market their bankruptcy services in the Spokane area and charge a lot more, so be careful. In our opinion, you’re better off hiring a local lawyer who you can visit in person and talk with the people who are doing the work for you.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy fee structure is different in that a client pays a retainer up front before filing. The remainder of the fees are paid over time through the bankruptcy plan. Chapter 13 bankruptcies usually last 3-5 years, so the rest is paid out over that time frame.

The upfront fee for most cases is $1,000.00 plus a filing fee of $313.00. The remaining fees are paid over the course of the Chapter 13 plan. The total fees paid in a chapter 13 bankruptcy vary from case to case based on the work needed. Our office fees are charged hourly and are based on the time spent working on the case. When cases have unique issues or are filled on an emergency basis, the upfront fee requested can be higher.

Get an Experienced Lawyer

I always tell clients asking about fees that they should focus on finding an experienced bankruptcy lawyer that will charge them a fair price and do a good job, one that produces a successful outcome for them. It’s a plus if they’re easy to work with and you like them. People are often looking for their cheapest option, but you don’t want the cheapest lawyer you can find in a serious legal proceeding. It is the same for a dentist or surgeon, do you really want to go to the cheapest dentist in town?  You may find the cheapest—but maybe a painful experience.

If you’re looking for quality work from a local Spokane bankruptcy lawyer that charges reasonable fees, contact us for a free consultation.  We would be glad to help.

If your looking for more information about bankruptcy check out our Bankruptcy Information Center

Yes. Since most bankruptcy lawyers offer a free consultation, there’s not a good reason not to seek legal advice from an attorney.

Bankruptcy is a serious legal proceeding and can have negative consequences if done wrong. Once a case is filed, it’s very difficult to dismiss or stop it if a mistake has been made.

The U.S. Trustee reviews all case filings and randomly audits cases to determine if they meet legal requirements. Trustees are assigned to cases to review the value of assets and transfers of property. If they find assets that are not properly disclosed, valued, or transferred, there could be significant problems. Problems that could have been averted by talking to a bankruptcy attorney first.

You can file a bankruptcy yourself, and some internet websites offer help in doing so. That type of filing is called Pro Se, but you do it at your own peril. Considering how reasonable attorney fees are for filing, it is worth the cost to have it done right and done quickly so you can sleep well at night and not worry about it.

If you’d like to know more about filing bankruptcy take a look at our Bankruptcy Information Center. For a free consultation with a local Spokane bankruptcy lawyer, just reach out to us. We’re happy to help.

The best way to determine if you qualify is to talk to a bankruptcy attorney. An experienced attorney can tell you very quickly if you qualify and what type of bankruptcy would be best for you. They can also tell you what the advantages and disadvantages would be in your situation.

Most low-income to middle-income individuals file Chapter 7 bankruptcy. Middle to high-income individuals file Chapter 13 Bankruptcy and high to very-high income individuals file Chapter 11 bankruptcy. Income is not always the determining factor, but it plays a major role in what type of bankruptcy you may qualify for.

If you would like to know what type of bankruptcy you qualify for, we offer a free consultation with an experienced Spokane bankruptcy Lawyer. Just reach out for an appointment, we are happy to help.