Spokane Bankruptcy Attorney
A Spokane bankruptcy can be a good option for you, but only if you qualify for relief under the bankruptcy code. Most debt can be completely erased with the filing of proper paperwork to the Federal Bankruptcy court.
This will depend in large part if you decide/qualify for a Chapter 7 or a Chapter 13 bankruptcy.
Different chapters under the Federal Bankruptcy Code are applied to different situations, for example:
Chapter 7: Liquidation (liquidates all assets and debts)
Chapter 9: Bankruptcy of Municipality
Chapter 11: Reorganization or Liquidation for Business
Chapter 12: Family Farmers Bankruptcy
Chapter 13: Wage Earner Plan (individual debt reorganization plan)
Chapter 15: Border Bankruptcy (i.e. Canada assets)
Most families and single people try to qualify for a Chapter 7 bankruptcy as this chapter allows for the greatest discharge of debt. Chapter 13, for example, sets an unsecured dischargeable debt limit of $336,000, while Chapter 7 does not have a limit for unsecured debt.
If you are thinking about filling a Spokane bankruptcy, you will probably want to determine (or we can help you determine) if you qualify for Chapter 7. To do this, you will need an accurate account of the prior six months gross income.
This includes help from the family gifts, IRA withdraws, or any other source of income.
The average gross income of those six months (referred to as the Current Monthly Income) must be multiplied by twelve to arrive at your Average Gross Annual Income. To qualify for Chapter 7, the Average Gross Annual Income must be below the Medium Income Table for the relevant family size in Washington.
Family Size |
|||||
| State | 1 Earner |
2 |
3 |
4 |
4 +* |
| ID | $39,050 |
$48,648 |
$55,453 |
$61,480 |
$7,500 |
| WA | $49,930 |
$63,224 |
$72,524 |
$82,602 |
$7,500 |
If the result is under the Median income, you could file for Chapter 7 or you could file can file under a 36 month "best effort" Chapter 13.
If however, the result is AT or ABOVE the Median income for the pertinent family size, you must undergo a "Means Test." In addition, if you are filing Chapter 13, you must do a 60-month "best effort" plan. If an individual or family fails the Means Test, then a Chapter 13 must be filed.
The means test applies if an individual or a family is over median income, but they have very little left to live on (i.e., $100 per month). If this is the result, they will still qualify them for Chapter 7 and avoid Chapter 13.
Remember, if your Average Gross Annual Income is below the Median Income for your family size, you most likely will qualify for Chapter 7 or Chapter 13 (your choice).
Bankruptcy Court Organization
In the federal scheme, the Supreme Court is highest court. There are 13 circuit courts of appeal. The district courts (trial courts) come next. Supreme Court justices, judges on the courts of appeal are "Article III" judges, meaning that they have lifetime appointment and cannot have their salaries diminished.
Magistrates are selected by the circuit and they can try matters if both parties consent, and they have other duties in the criminal arena.
Bankruptcy judges are not Article III judges, they’re Article I judges, which means they have 14 year terms that are renewable renewable.
Contact us today at
509-927-3840
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