Bankruptcy laws in Washinton state

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Latest post Sat, May 23 2015 1:07 AM by rossbachlawfirm. 6 replies.
  • Wed, Jul 23 2014 7:38 PM

    • Smurfin
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    Bankruptcy laws in Washinton state

    It was mentioned to me that even though someone files for bankruptcy they still have to pay the debts is this true?just doesnt make any sense to even file bankruptcy if true

    also if a person has debts before marriage and than combined debts with spouse do they combine all seperate bills and sfter marriage bills or would they have to file separate?

  • Wed, Jul 23 2014 8:53 PM In reply to

    Re: Bankruptcy laws in Washinton state

    Smurfin:
    It was mentioned to me that even though someone files for bankruptcy they still have to pay the debts is this true?just doesnt make any sense to even file bankruptcy if true

    It varies depending on the details of the debts, what chapter of bankruptcy is filed, and the debtor's situation. However, in the common Chapter 7 bankruptcy situation, most of the debts are not paid in full and the debt not paid off in the bankruptcy is discharged, meaning that the debtor has no personal liability for that debt anymore. If the creditor had a lien against some property of the debtor before the bankruptcy was filed that creditor may still collect from the secured asset, though.

    Smurfin:
    also if a person has debts before marriage and than combined debts with spouse do they combine all seperate bills and sfter marriage bills or would they have to file separate?

    All the debts of the debtor are included in the bankruptcy. If both spouses file bankruptcy, then all debts of both spouses are included in the bankruptcy. The spouses may file a joint bankruptcy if they wish. Whether it is best to do the joint petition, for each spouse to file separate petitions, or only spouse to file depends on the details of their situation and what exemptions their state gives them. This is something they'd discuss with a good bankruptcy lawyer.

  • Thu, Jul 24 2014 2:20 PM In reply to

    Re: Bankruptcy laws in Washinton state

    Smurfin:
    It was mentioned to me that even though someone files for bankruptcy they still have to pay the debts is this true?

    Who mentioned it to you?  A lawyer?  If not, why would you give the statement any credence?

    If John files for BK, his creditors will be barred from taking action to collect the debts unless the case is dismissed or they obtain permission from the court.  Depending on whether John has filed under Ch. 7 or Ch. 13 (the two most common chapters of the BK Code under which an individual may file), the case may result in discharge of all of John's pre-filing debts (he'll still have to pay any new debt incurred after the date of his filing) or it may result in long-term payment plan whereby John pays a fixed amount on a monthly basis to the BK trustee, who then distributes the $$ to creditors.

     

    Smurfin:
    also if a person has debts before marriage and than combined debts with spouse do they combine all seperate bills and sfter marriage bills or would they have to file separate?

    Married persons may file jointly or individually.  What is appropriate in any particular case obviously depends on the relevant facts.

  • Thu, Jul 24 2014 2:32 PM In reply to

    • Kivi
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    Re: Bankruptcy laws in Washinton state

    There are some debts that might be not be dischargeable in bankruptcy. Student loans are a good example and debts related to child support also are likely in that category. Back taxes may or may not be dischargeable.

    Everyone's situation is different. So, it is better if a person contemplating filing for BK protection see an attorney who specializes in this area of law. That way the person will get a realistic idea about what to expect, etc.

    If the person has many debts, even if not all of them can be discharged, they may still get some financial relief. After all, if you were trying to pay off twenty or thirty debts a month, knocking down the number of debts to be paid from twenty r hirty debts to two or three may still be helpful.

     

  • Thu, Jul 24 2014 9:37 PM In reply to

    Re: Bankruptcy laws in Washinton state

    A couple of links for your reading pleasure:

    http://www.washington-bankruptcy.com/exemptions.html

    and the Revised Code of Washington itself, so you can look up those law sections if you like:  http://apps.leg.wa.gov/rcw/

    It's my understanding that the exemptions listed in Title 6 RCW apply even if the judgment debtor doesn't file for bankruptcy, but I'm not entirely sure about the mechanics of how and when the debtor indicates which property he is claiming under the exemptions if he doesn't declare bankruptcy.

  • Fri, Jul 25 2014 8:33 PM In reply to

    • Smurfin
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    Re: Bankruptcy laws in Washinton state

    ca19lawyer2:
    Who mentioned it to you?  A lawyer?  If not, why would you give the statement any credence?

    I have never filed for one but my sister has and she never had to pay anything back. I did read up on both and it seems in some cases with Ch 13 some might have to be paid back

    I am just here just to make sure of te facts if true or not

    Thank You everyone

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