Washington Bankruptcy
Washington Bankruptcy Law
Bankruptcy Code and Exemptions...
Although Federal Bankruptcy Code and U.S. Bankruptcy Laws apply to everyone, each state has its own Bankruptcy Code and Rules of Bankruptcy Property Exemption that apply specifically in that state.
Washington Bankruptcy Law
Washington Debtor Rights...
Immediately, upon filing Washington bankruptcy under either Chapter 7 or Chapter 13, the automatic stay set forth in Section 362 of the new federal bankruptcy Code prohibits creditors to continue collection of debts. Actual notice of filing is not required, yet violations before actual notice are usually considered accidental by courts and penalties are not enforced. After a creditor receives actual notice however, courts adopt a stern view towards violations and deem any action for collection an intentional act in most cases. After actual notice, creditors are subjected to substantial fines and penalties and may be held in contempt of court as if violating an injunction.
Washington debtors who become aware of creditor misconduct should immediately notify their attorney. In a few instances, creditors may be simply unaware of the law and commit accidental violations. However, as most attorneys and judges can attest, few creditors are truly acting out innocence, but are rather deliberately flaughting the Washington state bankruptcy laws.
Commercial creditors learned long ago to cease and desist all collection efforts immediately, whether from actual notice or implied, when any individual files. All competent lawyers quickly prosecute violations and enjoy collecting fines and penalties for their clients.
Washington Bankruptcy Exemptions
Washington Resident Rights...
Each Washington resident is given the right to retain certain property when filing for liquidation. The Washington bankruptcy exemption list provided by the state legislature, as well as the Federal list provided by the code, are available to all Washington residents. An election must be made, choosing either state or federal alternatives.
Because of the more generous homestead allowance under the state statute, most Washington residents prefer the state list. ($30,000 vs. $18,500). Pay special attention to included categories. Covered assets vary significantly, especially relating to covered pensions, retirement accounts, and annuity payments owed in the future.
Bankruptcy Discrimination in the State of Washington...
As provided under Section 525 of the Code, no employer may discriminate against any person simply because of filing a potion in bankruptcy. Discharged debts, failed friendships and relationships, and the aggravation of dealing with wage orders notwithstanding, employers may be held liable.
All debtors who file are a protected class. However, prohibited discrimination is difficult to prove. Unless bankruptcy discrimination is the sole cause of job loss, recovery becomes highly unlikely. In employment at will states, employers may terminate any employee, for any reason, unless strictly prohibited by law. In practice, almost all large employers have practiced excuses ready and lawyers in tow, to draft confirming letters of termination.
Pre-Bankruptcy Planning and Preparation
Pre-bankruptcy planning is a delicate topic with many transactions prohibited, but with the assistance of a progressive bankruptcy attorney, other allowable exemptions may be identified.
In practice, most people who file for bankruptcy will actually improve their credit rating within 18 months or less. In fact, in a chapter 13 filing, credit will begin to improve once late payment reports stop, and secured loans and credit lines begin reflecting timely payments.
Overall, filing for bankruptcy can, for many Americans in many different circumstances, be an important and integral step toward financial recovery and new found fiscal stability. Ultimately, bankruptcy creates opportunities and improves net worth, so long as the decision to file was made wisely.
To learn more about Washington State Bankruptcy Exemptions, simply go to our U.S. Bankruptcy Exemptions page.
In most states you can legally protect your personal residence in a bankruptcy. The interesting thing is homeowners are treated differently from state to state.
Learn more about the Homestead Act and how it affects you.
Washington Bankruptcy Code
All Washington Bankruptcy cases are governed by Title 11 of the United States Bankruptcy Code, by U.S. Bankruptcy Rules, and by local Washington State Bankruptcy Rules promulgated by Washington court.
The US bankruptcy court websites generally have links to both, the Federal US Bankruptcy Rules and specific Washington Bankruptcy Code. Clerks in the bankruptcy courts will not give debtors, or even attorneys for debtors, legal advice, including advice about which bankruptcy rules apply to a given case.
Locate a US Bankruptcy Court in your federal judicial district.
Since US Bankruptcy Code and Washington Bankruptcy Rules are very technical, and since the case load in the US Bankruptcy Courts makes judges very unforgiving of mistakes or missed deadlines, it's highly recommended to seek the advice of an experienced Washington Bankruptcy Attorney and Certified Credit Counsellor.
The most recent Changes to the Bankruptcy Code and Bankruptcy Rules came about on April 20, 2005 as President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act. This new Bankruptcy Law came into effect October 17, 2005.
Learn more about the 25 Most Recent Changes to Personal Bankruptcy Law and how they affect you.
