Summary
In Washington State, Chapter 7 bankruptcy may allow you to keep your home if it qualifies for the homestead exemption, protecting up to $125,000 in equity. Chapter 13 bankruptcy could be a better option if you have significant equity, as it allows you to keep your home while repaying debts over 3-5 years. The cost to file for Chapter 13 includes a $313 filing fee and attorney fees ranging from $3,000 to $4,000, which can be included in the repayment plan. Consider consulting a bankruptcy attorney for personalized advice.Full Conversation
I live in Washington State. I am considering filing bankruptcy, yet want to make sure my residence is not at risk. My name and my father are both on the deed and mortgage.
Hi ****, I understand your concern. To provide more accurate information, could you please clarify if you are considering Chapter * or Chapter * bankruptcy? This will help me offer more specific guidance.
What's the difference?
Hi ****,
The difference between Chapter * and Chapter * bankruptcy is:
- **Chapter ***: Liquidation bankruptcy; can eliminate most debts. Non-exempt assets may be sold to pay creditors.
- **Chapter ***: Reorganization bankruptcy; allows you to keep your property. You repay debts over *-5 years.
Which option are you leaning towards?
If I file Chapter *, do I keep my home?
Hi ****,
In Washington State, under Chapter * bankruptcy, you may keep your home if it qualifies for the homestead exemption:
- **Homestead Exemption**: Up to $*,* in equity in your primary residence is protected.
- **Joint Ownership**: Exemption applies to your portion of the equity.
Would you like more information on how the homestead exemption applies to your situation?
I put up $*,* personally in equity, my dad did not put in any equity. Yet with home values increasing, the equity has grown.
Hi ****,
Given your situation, it's important to consider the following points regarding the homestead exemption in Washington State:
- The homestead exemption protects up to $*,* of equity in your primary residence.
- Since the exemption applies to your portion of the equity, it’s likely you may need to evaluate the total current equity and your share.
Would you like to explore more about how the courts determine equity and exemptions in your specific case?
yes, please.
Hi ****,
Here’s how the courts in Washington State determine equity and exemptions:
- **Current Market Value**: Assess the current market value of your home.
- **Mortgage Balance**: Subtract the remaining mortgage balance from the market value to determine total equity.
- **Homestead Exemption**: Apply the $*,* exemption to your share of the equity.
Would you like more details on the calculation process or any specific aspect of this?
It looks like I could have a total of $*,* in equity, given the current market value. If that's the case, is Chapter * a better option, as far as securing my primary residence?
Hi ****,
Given your significant equity ($*,*), Chapter * may be a better option for securing your primary residence. Chapter * allows you to:
- Keep your home while repaying debts over *-5 years.
- Potentially protect more equity than Chapter *’s homestead exemption.
Would you like to know more about the repayment plan process in Chapter *?
Yes, please
Hi ****,
In a Chapter * repayment plan, here's what you need to know:
- **Duration**: Repayment plans typically last *-5 years.
- **Payments**: You make regular payments to a trustee, who distributes funds to creditors.
- **Protection**: Your home is protected as long as you keep up with the plan.
Would you like more details on how to structure your repayment plan or any other specific aspect of Chapter *?
how much does it cost to file for chapter *?
Hi ****,
The cost to file for Chapter * bankruptcy in Washington State is generally:
- **Filing Fee**: $*
- **Attorney Fees**: Typically $*,* to $*,*, which may be included in your repayment plan.
Would you like more details on the filing process or attorney fees?
no thank you.
Hi ****,
Thank you for reaching out. If you have any other questions or need further assistance in the future, feel free to contact us. Best of luck with your bankruptcy process!
Polite regards,
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