Spokane Bankruptcy Attorney

Almost nobody arrives at a bankruptcy consultation casually. Most people have already tried everything else: consolidation, hardship programs, borrowing from family, working extra hours. By the time they call, the question is usually not whether the debt is manageable but whether they will lose the house or the car trying.

The first thing worth knowing is that bankruptcy is not a moral failure — it is a process Congress created specifically so that people can recover. The second is that "I'll lose everything" is usually false. Washington has some of the most protective exemptions in the country.

We will look at your actual numbers and tell you honestly whether bankruptcy helps, which chapter fits, and what you would keep.

Should I file Chapter 7 or Chapter 13?

Choosing between them is not a matter of preference — it turns on your income, your assets, and what you are trying to save.

Chapter 7 — discharge

Often called liquidation, though most filers lose nothing, because exemptions protect their property. Qualifying unsecured debts — credit cards, medical bills, personal loans, most judgments — are wiped out, typically a few months after filing. You must pass the means test to qualify.

Chapter 13 — reorganization

A court-approved repayment plan lasting three to five years, funded by regular income. It is the right tool when you are behind on a mortgage and want to keep the house, when you have non-exempt equity to protect, or when your income is too high for Chapter 7. At the end of the plan, remaining qualifying debt is discharged.

Choosing between them is not a matter of preference — it turns on your income, your assets, and what you are trying to save.

What stops immediately when you file bankruptcy?

The moment your case is filed, federal law imposes an automatic stay that halts most collection activity. In practice this is the relief people feel first:

• Wage garnishments stop
• Collection calls and letters must stop
• Foreclosure sales are halted, at least temporarily
• Vehicle repossession is halted
• Utility shut-offs and most lawsuits are paused

The stay is powerful but not unlimited: it does not stop child support or spousal maintenance collection, most criminal proceedings, or certain tax actions, and secured creditors can ask the court for permission to proceed. Timing also matters enormously when a foreclosure sale date is already set.

Will I lose my house if I file bankruptcy in Washington?

This is the question we are asked most, and Washington's answer is unusually favorable. Under RCW 6.13.030, the homestead exemption on your primary residence is the greater of $125,000 or the county median sale price of a single-family home in the preceding calendar year — a figure that adjusts annually and, in Spokane County, has been well above the $125,000 floor in recent years.

That protects equity, not the mortgage. You still need to stay current on the loan (or catch up through a Chapter 13 plan) to keep the home. But for most Spokane homeowners, the exemption is large enough that a Chapter 7 filing does not put the house at risk at all.

What property can I keep in a Washington bankruptcy?

Beyond the homestead, Washington law shields the property that keeps daily life running — the categories below are set by statute, and the specific dollar limits should be confirmed against the current version before you rely on them:

• Equity in a motor vehicle
• Household goods, furniture, appliances, and personal effects
• Tools and materials used in your trade
• Retirement accounts — 401(k)s, IRAs and pensions are broadly protected
• Most public benefits, including Social Security and disability
• A wildcard amount that can be applied to property of your choosing

Amounts are per person. Whether a married couple filing jointly can claim two sets — and whether that applies to the homestead in particular — is a question on which published sources disagree, so it should be reviewed for your situation rather than assumed. Washington is not an opt-out state, so filers may instead choose the federal exemption list; for homeowners with equity, Washington's list usually protects more. Figures should be confirmed against the current statute before you rely on them.

Washington filers can generally choose between the state exemption list and the federal list, and which one protects more depends on what you own — homeowners with equity usually do better with Washington's. Married couples and recent arrivals to the state have additional rules to navigate, which is exactly the kind of thing worth checking before filing rather than after.

Do I qualify for Chapter 7 bankruptcy?

If your household income is below the Washington median for your household size, you qualify. If it is above, a second calculation subtracts allowed expenses to determine whether you have meaningful disposable income to fund a repayment plan. The figures are published by the U.S. Trustee Program and change periodically, and income is measured over the six months before filing — which means timing can genuinely change eligibility.

What debts are not erased by bankruptcy?

Being clear about this upfront prevents disappointment later. Bankruptcy generally does not erase:

• Child support and spousal maintenance
• Most student loans, absent a showing of undue hardship
• Recent income taxes and certain other tax obligations
• Criminal fines and restitution
• Debts from fraud, or from injuries caused by drunk driving

Bankruptcy does not remove a valid lien — if you want to keep a financed car or home, that loan still has to be dealt with.

It also does not remove a valid lien — if you want to keep a financed car or home, that loan still has to be dealt with.

How does bankruptcy affect your credit?

A Chapter 7 generally remains on your credit report for up to ten years and a Chapter 13 for up to seven. The honest picture is more nuanced than that sounds: many people's credit is already badly damaged by missed payments, charge-offs and collections by the time they file, and scores frequently begin recovering within a year or two of discharge because the underlying debt is gone. Access to secured cards and auto financing often returns well before the filing drops off the report.

Where are Spokane bankruptcy cases filed?

Bankruptcy is federal, so cases from this area are filed in the U.S. Bankruptcy Court for the Eastern District of Washington, which serves Spokane — but the exemptions that determine what you keep come from Washington state law. Credit counseling before filing and a debtor education course before discharge are both required.

When is bankruptcy not the right answer?

Sometimes it is not. If your debt is primarily student loans, if you have substantial non-exempt assets you are unwilling to risk, if a recent large transfer would be scrutinized, or if negotiating directly with creditors would resolve the problem, we will say so. A consultation that ends with "you do not need to file" is a good outcome, not a lost one.

Frequently asked questions