Yakima Bankruptcy Attorney

Frequently Asked Questions

What is bankruptcy?

Bankruptcy is a legal process that allows a person or business to do away with most or all of their debt. There are several methods of bankruptcy that cater to specific people or businesses and their specific needs.

What methods of bankruptcy are available to me?

There are three primary methods of bankruptcy, with two of them being geared towards the needs of the individual. They are:

• Chapter 7 - Also referred to as "straight" bankruptcy or "liquidation," this allows a person to liquidate (or sell) certain property in order to have the funds necessary to pay off their debts. Once liquidation is completed, the person's debts are discharged, and they start with a financial clean slate.
• Chapter 11 - This bankruptcy type mainly serves businesses, corporations, and partnerships, though it is available to individuals who possess an extremely large amount of debt.
• Chapter 13 - This is also referred to as "debt adjustment," and it involves a person devising and entering into a payment plan with their creditors that allows them to pay their debt off in installments over time.

For help in deciding which bankruptcy method is best suited to your situation, contact an Yakima bankruptcy attorney for an in-depth consultation.

Will I lose my property if I file for bankruptcy?

If you file for Chapter 7 bankruptcy, there may be certain property or assets of yours that will need to be liquidated in order to help the repayment of your creditors. However, there are many property or asset types that are exempt from the liquidation process, and you may be able to take advantage of these exemptions in order to avoid losing any of your prized possessions. In fact, many Chapter 7 cases are considered "no asset," which means that the debtor has no property that would be eligible for liquidation. If you are considered a "no asset" case, you will be allowed to keep all of their possessions. If you are filing for Chapter 13, you are entering into a payment plan with your various creditors, which makes the liquidation of any of your property unnecessary.

Are there debts that cannot be discharged in a bankruptcy?

There are several types of debt that are usually ineligible for the bankruptcy process. Some of these include alimony payments, child support payments, income taxes, and student loans of any kind.

Contact an Yakima bankruptcy lawyer for additional information about the bankruptcy process.